Chairperson, thank you for giving us the time to brief you about our Budget Vote. In a way this is my maiden address, but I think I have been here before. Let me start by saying as a former Premier of Gauteng ... [Laughter.] ... one can honestly say that it is great to be back here in the National Council of Provinces to share with you as representatives of your provinces as well the thinking that drives our new mandate as Human Settlements.
This Budget Vote covers what is still defined as the Housing Vote in terms of the Medium-Term Expenditure Framework. Our presentation will consist of three parts: firstly, the concept of human settlements; secondly, the current housing situation; and, thirdly, the consequential challenges of our new mandate.
In understanding our approach, we need look no further than the Constitution of our own Republic, where the very first value referred to in the very first line of the first chapter is that of human dignity.
The concept of human settlements, which recognises the centrality of human dignity, may be a new one to many South Africans. Yet it has been part of the global developmental lexicon for many years, having been first adopted at the United Nations global habitat summit in Canada in 1976. It gained ground at another UN conference, this time at the World Summit on Sustainable Development, held in Johannesburg in 2002. The 52nd national conference of the ANC in Polokwane in 2007 took this concept further, where several resolutions committed the new government to the promotion of human settlements.
Ultimately, in both his state of the nation address and Budget Vote, President Jacob Zuma formalised this concept with the establishment of the new Ministry of Human Settlements. He said, and I quote:
... housing is not just about building houses. It is also about transforming our residential areas and building communities with closer access to work and social amenities, including sports and recreation facilities.
Chairperson, this concept was also referred to by the last Minister of Housing, Dr Lindiwe Sisulu - we say "last" because that department has now gone - in what we call the Breaking New Ground policy, which outlines the need for a human settlements plan.
But what is the letter and spirit of this concept? This is actually contained in the Freedom Charter, long before the Vancouver conference in Canada or the world summit, and long before Polokwane. That Congress of 1955 demanded: "There shall be houses, security and comfort."
Mindful of the consequences of apartheid social engineering, the Congress demanded that, "All people shall have the right to live where they choose, to be decently housed, and to bring up their families in comfort and security." It went on: "Slums shall be demolished, and new suburbs built where all have transport, roads, lighting, playing fields, crches and social centres."
In this respect, our task, in terms of the government's Medium-Term Strategic Framework, is clear: that is to restore human dignity in line with the Constitution, to address spatial inequalities and to provide comfort and security for all in our country, black and white.
This we shall achieve by planning and building human settlements in an integrated, co-ordinated and holistic way. These must be places where people can play, stay and pray. They should be pleasant, landscaped communities where people live, learn and have leisure.
To achieve all this requires a new approach, a paradigm shift beyond housing. It is about homes. It is not just about a change of name from Housing to Human Settlements; it is about a change of mind-set, taking us from a concept to concrete reality. Let me briefly reflect on the work of the Department of Housing as it stands. Some of the key developments are the following. Expenditure on housing service delivery has increased from R4,8 billion in the year 2004- 05 to R10,9 billion in the last financial year, increasing at an average rate of 23%. Funds allocated to national pilot projects for this financial year include R400 million for the N2 Gateway, R120 million for the Zanemvula Housing Project and R150 million for disaster relief in KwaZulu- Natal.
The roll-out of housing delivery is a key function of provincial government and our department's main cost driver is the integrated housing and human settlement development grant to provinces. This accounts for 92,6% of the total budget allocation of R13,5 billion in the current financial year. It should be noted that expenditure in this area during the year 2008-09 exceeded the allocation in view of the fact that the Mpumalanga provincial treasury allocated the provincial housing department R100 million to facilitate the acceleration of housing delivery and to finalise prioritised incomplete projects. The leadership in that province needs to be commended.
Regrettably, the national department had to reduce the Eastern Cape's allocation and reallocate it proportionately to three provinces. We reallocated R270 million: Gauteng received R152 million, the Free State R68 million and Mpumalanga R50 million. This was to avoid a situation in which appropriated funds have to be sent back. This underspending is an issue which concerns us and we intend to keep in close contact with the various MECs to ensure spending stays on track.
At the same time, we will be engaging with our members of executive councils around the number of qualified audit reports which are emerging both at provincial and local government level. We all should understand what qualified reports mean: unspent funds - they go back; no projects on the ground whilst people are suffering.
Going forward, additional funds are being allocated to provide for large- scale upgrades of informal settlements and the alignment of the national housing grant with inflationary price increases. Although the housing grant allocation has been increased over the 2009 MTEF period, we remind you once again that the previous studies by the department concluded that continuing with the current trend in the housing budget would lead to a funding shortfall of a very staggering amount: R102 billion by 2012. At the same time, if this trend continues to 2016, it will amount to a backlog of R223 billion.
We have also strengthened our resolve to provide housing assistance to people living in shacks, who constitute the bulk of the housing backlog. The rural housing programme remains a key housing intervention, and new initiatives are in the pipeline to accelerate the development of quality rural human settlements.
Let me now turn to the question of corruption. This remains a major challenge across the housing delivery environment. To ensure we identify and act against criminals, we have strengthened our partnership with the Special Investigating Unit, SIU, and taken stern action against offenders.
To date, a total of 772 public servants have been charged, of whom 554 have been convicted. More than 1 600 acknowledgements of debt have been signed in respect of nonqualifying government employees, with a total value of R19,8 million of public funds. Millions have already been collected by the SIU from nonqualifying illegal beneficiaries.
Let us now come to the question of the consequential challenges of our new human settlements mandate. From the outset, let me emphasise that ours is effectively a brand-new Ministry with, for the first time - and there she is - a brand-new Deputy Minister, the hon Zoe Kota-Fredericks. [Applause.] And much of what we are undertaking in terms of human settlements is also brand-new.
In addition, all the provincial MECs are new to their portfolios. However, they are nonetheless a dynamic team of men and women, with whom we have already held two successful meetings or lekgotla, otherwise called Minmecs. These meetings have played an invaluable role in shaping our thinking as Team Human Settlements, together with our senior management team in the department, led by director-general Itumeleng Kotsoane and our partners in the various housing institutions.
Internally, as the Ministry and the Department of Human Settlements, we are examining the implications of the broader definition of human settlements in terms of our mandates, policies, procedures and programmes, as well as the capacity that we have.
We also have several legislative proposals in the pipeline to accelerate the achievement of the ideal of human settlements - for people as well as to strengthen the legal environment. These will include the following four: amendments to the Housing Act; the Sectional Titles Schemes Management Bill; the Community Schemes Ombud Service legislation to establish a dispute resolution mechanism for all community housing schemes; and, in addition to the above-mentioned, the Land Use Management Bill is being piloted by the Department of Land Affairs. That is quite critical for us. At the same time, we will be tabling a new national housing code, which is required in terms of the Housing Act of 1997. The housing code of 2009 was approved by the Minmec in February of this year.
It must be clear by now that, as much as we aim to address the housing needs of all South Africans and build integrated communities, our chief focus is the needs of those South Africans who are on the receiving end of economic negativities. That is the poor, as well as the poorest of the poor, where the former qualify for government subsidies and the latter, who live in shantytowns, qualify for nothing.
Shantytowns exist throughout South Africa, where townships or "slaapdorpe" (dormitory towns) were built under apartheid far away from urban areas. This was taken to horrific extremes in many places such as Ekangala, where people depart for the city of Tshwane as early as 4am, spending hours on the road. Heaven only knows what time such people had to get up to travel to work.
This government has made tremendous gains in breaking the housing backlog and the number of new homes built is second only to China. But this must not mean that houses should be of a poor standard or that quality is compromised in the interests of merely chasing numbers.
Consequently, it is crucial that we work closely with the planning and monitoring Ministries in the Presidency. In our department we already have our own monitoring unit to assess the quality and quantity of homes as well as the National Home Builders Registration Council, NHBRC, and we will be collaborating with the relevant Ministries within the Presidency. That is the National Planning Commission as well as the Ministry in charge of performance monitoring and evaluation.
Similarly, we will focus on heightening co-operative governance with provinces and municipalities to harmonise the national, provincial and local government in order to continue working together. We will also work closely with the SA Local Government Association, Salga, as well as with the SA National Civic Organisation, Sanco.
Increased interaction with local government will, for example, enable us to redress existing developmental gaps in more established communities such as Soweto, Langa and so on, where apartheid spatial planners deliberately neglected the need for community services and facilities. It is important that we avoid perpetuating the same apartheid spatial development strategies.
A golden thread runs through all our initiatives: that is, consultation and community involvement for community development. We plan to work closely with communities, contractors, regulators, and other stakeholders.
The corporate sector is a key partner in ensuring we meet our objectives. We will be engaging with captains of industry as well as high net-worth individuals towards consolidating new partnerships with the private sector. This would be in recognition of the fact that working together we can do more. A consultative meeting will be held with business in the coming months to explore ways and means of addressing the dire situation of the unbanked and people who do not qualify for credit.
It is well known and appreciated that many players within the corporate sector are committed to social investment as well as responsibility, but our new engagement with them will be about going the extra mile for the sake of our people. We trust and believe that the corporate sector will come on board.
In the current situation, the global economic downturn is of fundamental and critical concern to us as Human Settlements, as it negatively impacts on our endeavours, now and in the foreseeable future. This situation is worsened by the current economic recession in the South African business cycle.
This does not paint a rosy picture. In revenue collection terms, this situation has had a serious effect on the fiscus, which could lead to decreases in budget allocations, with potentially harmful consequences for all departments of government in the future.
In our own sector we are already feeling the pinch in the prices which are increasing on the property market, in building materials, and in access to housing finance. Many people have lost their jobs or are in the process of losing their homes and household contents. On a broader level, an ongoing global slowdown in spending and investment is likely to impact on the government's ability to meet some of the targets of the 2014 United Nations Millennium Development Goals.
The other global phenomenon we need to factor in - and this is important - is that of planning for urbanisation. UN-HABITAT has pointed out that this century, the 21st century, is in fact the Urban Century when, for the first time in history, the world's population will predominantly be living in cities. We must be prepared for this eventuality and identify its problems as well as its opportunities.
Yet, there must be no equivocation that the 21st century must also be seen as the one in which South Africa must grow from being a developing to a developed country. There must be an active realisation that this is what our government is working towards as we develop human settlements, because Human Settlements is not about upgrading squatter camps. It is about putting up new cities. A question we can ask is: How many cities have been built in South Africa since Nelson Mandela was released? It's a challenge.
Lastly, but most importantly, let me emphasise that we will require the support of the hon members of the NCOP, as well as the Select Committee on Human Settlements in particular, if we are to succeed in our mission. Chairperson, I began this presentation by explaining the concept of human settlements in the context of the Freedom Charter. Let me conclude my presentation by telling you what I was doing last week, together with a team of us, on 26 June 2009, the 54th anniversary of the signing of the Freedom Charter. On that day we were privileged to hand over certificates to a number of youths - volunteers - who had taken part in our annual Youth Build programme which encourages young people to get involved in home construction. In this case the youth volunteers were members of the Eshowe community in KwaZulu-Natal who participated in new home building schemes in a suburb called Sunningdale. The houses they built, 76 for that week, were for the elderly. [Applause.]
Because of good corporate governance we were able to celebrate the creation of a new community - a community with trees, grass, and vegetables - thanks to collaboration with the Department of Agriculture, Forestry and Fisheries and the Department of Water Affairs. We urge you to contribute in getting this message across. We believe that the NCOP has a duty, not only to hold this Ministry accountable for the development of human settlements as well as budgetary expenditures, but to also join us in educating beneficiaries on the importance of taking care of and maintaining the assets that we provide people and the environment within which such assets are located. When you provide people with a house, that becomes an asset and the people can use it for all sorts of things.
In doing so, we are asking you to echo our message - and we said that yesterday to the National Assembly - to address the pervasive and negative entitlement mentality that exists among some individuals within society, who only see government as something that gives handouts. It is important for people to also begin to assume responsibility.
Finally, as Team Human Settlements we know the difficulties that confront us. We understand our mission. We foresee the challenges. It is not going to be an easy task, particularly given the current economic constraints. And we know we have to be extremely careful with every cent we spend. After all, it is public money, contributed by South African taxpayers, both rich and poor.
We know and trust that we shall have the support of this House, both for our activities and for the expenditure that is outlined in our Budget Vote. The commitment that we make in return is that as accountable political leadership, together with our MECs and our management team, we will put our shoulders to the wheel on the basis of sound principles and good governance to ensure success, knowing quite well that this calls for hard work, diligence and serious commitment. Chairperson, I thank you. [Applause.]
Thank you, hon Minister.
I should have said, Chairperson, with your permission, to Minister Nkosazana Dlamini-Zuma, that I'm prepared to exchange some human settlements for some IDs, because she has quite enough of those. [Laughter.] I thank you.
Thank you, hon Minister. I now call upon hon member M P Sibande, the chairperson of the Select Committee on Public Services.
Hon Chairperson, hon Ministers, hon members, ladies and gentlemen, I feel honoured once more and again want to thank all South Africans who voted in the last elections. In Mpumalanga in particular, 1,3 million people cast their vote, with 1,1 million voting for the ANC. These statistics prove beyond a doubt that the majority of the people in our province believe in the ANC as the only party that can make their dreams come true in terms of service delivery.
Malunga Ahloniphekile eSishayamthetho, kunempandana ebizwa ngokuthiwa ulamthuthu. Ulamnthuthu uphila ngokuphiwa ukudla adle asuthe ehlezi phansi, bese ezithumela khona lapho ehleli khona. Kwazise belu ukuthi unkabi akakwazi ngisho nokuzigolela intethe yodwa le.
Nathi-ke kule Ndlu yeSishayamthetho sakubona lokho ngesikhathi sizigayela amavoti. Thina abakwaKhongolose, ngisho belu u-ANC, sawaxwayisa amanye ameqembu ukuthi azozisola, azokhihla esikaNandi isililo emva kokhetho futhi azoyikhotha imbenge yomile ngoba azobuya elambatha. Ngoba thina bakwa ANC, ngokhetho, asisinisi mahleza - sibhaxabula ngesibhaxu kuphela.
Mangingakhohlwa futhi nokuhalalisela umholi we-DA uNkz Hellen Zille, ngokufaka igalelo lokwelekelela u-ANC ngokukhankasa ngokuthi axwayise abantu bakule ngabadi yakithi ngokuthi athi: Stop Zuma. Nangempela abantu bakithi base besusa uhlamvu u-'s' kwase kufundeka kanje: Top Zuma. [Uhleko.] Ngempela uGedleyihlekisa, uMsholozi, okaNxamalala, uMhlanganyelwa wakhushulwa waze waphuma phambili ngisho okwesixhumo senyamazane. Waphumelela ngamalengiso ukuthatha umshini wakhe, waqothula imbokodwe nesisekelo ngenxa yegunya alinikwe ngabavoti bakule ngabadi yakithi yaseNingizimu Afrika.
UMsholozi, ngokhetho wazigwazela ibhece nje kwazise phela ukuthi umhlaba wonke ubunqikaza ngenxa yengwadla nomshophi uKhongolose abebhekene nayo eyadalwa ngamambuka ayeqembuke ku-ANC. Ngolokho-ke ku-Cope sithi: Indlu yegagu iyanetha kanti nomthungo wezicathulo uveze obhozo obala kanti futhi thina sizohlala sinje siwu-ANC. (Translation of isiZulu paragraphs follows.)
[Hon Members of the Council, there is a type of chicken called the battery chicken. The battery chicken is fed until it is full without having to get up, and it relieves itself where it is sitting. It cannot even look for locusts to eat. We also saw this in this Council when we were campaigning for votes. The African National Congress warned the other parties that they were going to be sorry, that they would cry bitterly after the elections and that they would have a tough time because they would not get anything. That is because as the ANC, during the elections, we meant business; we beat everybody.
Let me not forget to thank the DA leader Ms Helen Zille for helping the ANC campaign by telling the people of this country to "Stop Zuma". Our people removed the letter "S" and then it read "Top Zuma". [Laughter.] Indeed Gedleyihlekisa, Msholozi, Nxamalala, Mhlanganyelwa rose to the top like a fawn. He excelled by taking his machine gun. He conquered all by the mandate that he was given by the people of our country, South Africa.
Msholozi had an easy win during the elections. The whole world was in limbo due to the problem which the ANC was facing that was caused by the party that broke away from the ANC. With those words we say to Cope: He who talks a great deal achieves nothing. Sweep before your own door; as the ANC we will remain like this.]
On 9 May this year, during the presidential inauguration, our hon President, Jacob Zuma, made a commitment to our people and to the world that "we shall not rest and we shall not falter in our drive to eradicate poverty."
Poverty manifests itself in different ways. It is understood to involve three critical dimensions, namely income, human capital - described as services and opportunities - and assets. Housing primarily contributes towards the alleviation of asset poverty. This contribution is to be strengthened in the new human settlement plan through supporting the development of sustainable human settlements and the development of housing assets.
After the 1994 elections the new, democratically elected ANC government committed itself to developing more liveable, equitable and sustainable cities. Key elements of this framework included pursuing a more compact urban form, facilitating higher densities, mixed land use development, and integrating land use and public transport planning so as to ensure more diverse and responsive environments while reducing travelling distances. Despite all these well-intended measures, the inequalities and inefficiencies of the apartheid space economy have lingered on.
The National Spatial Development Perspective adopted by the Cabinet has noted that several development programmes, including the housing programme, are not addressing the distortions of that inherited apartheid space economy. The Department of Provincial and Local Government has therefore prepared the draft national urban strategy that proposes a vision of South African towns and cities which are spatially and socially inclusive, well designed and developed in an environmentally efficient way. The shift will be towards a reinvigorated contract with the people and partner organisations for the achievement of sustainable human settlements.
Sustainable human settlements refer to "well-managed entities in which economic growth and social development are in balance with the carrying capacity of the natural systems on which they depend for their existence and result in sustainable development, wealth creation, poverty alleviation and equity". It was then clearly appropriate that the designation of the old Department of Housing be changed to the new, modern and more descriptive Department of Human Settlements.
In line with the presidential commitments, we shall provide housing for all our people. It is therefore totally acceptable that our efforts in this regard are being - and I shall use harsh words - sabotaged by unscrupulous entities that would appear to manipulate the prices of building materials. Only a week ago, it was reported in the national press that the Competition Commission had raided the premises of several leading cement producers in an investigation into so-called cartel behaviour in the building material and construction industries, which have been accused of driving up the cost of the government's infrastructure spending programme.
The Competition Commission said that it believes that anticompetitive behaviour in this market could be substantially increasing the cost of South Africa's infrastructure programme with negative effects on the economy. I think we can safely say that it will, undoubtedly, increase the cost of house building with extremely negative effects on the housing programme, and I sincerely hope that this type of behaviour will be nipped in the bud before too much damage has been done.
Furthermore, monitoring and evaluation becomes a key tool in making sure that we are uprooting all the so-called vampires who are surviving on government resources at the expense of poor people. Those vampires include all constructors who have won tenders and vanish without finishing the structures, eg in Limpopo, in Mpumalanga at the Dipaleseng Municipality, in the North West, and in the Eastern Cape in the Amathole District Municipality in a place called Pedi.
Lapho Ngqongqoshe. Kunezinkinga ngisho nalezi zindlu ezakhiwe, izivalo zikhona kungathi ngamakhadibhodi. Ngicabanga ukuthi kufanele kwenziwe okuthile ngalokho ngoba akungabi sengathi kuhlala amagundane lapho - (Translation of isiZulu paragraph follows.)
[There is a problem there, Minister. The houses that have been built have doors that are like cardboard. I think something must be done about it; it should not be as if there are mice living there.]
Other problems include constructors who are underpaying their workers, paying below the average rate in terms of the Labour Relations Act; constructors who are not paying their workers at all; the allocation of houses not to the rightful owners; the illegal selling of houses that are allocated by government; and service providers who are providing goods that are in a deteriorating condition.
It must be noted that government subsidies have been tripled in order to assist the poor people, but if government authorities do not take steps to deal with all the above-mentioned concerns, then all its efforts will be undermined.
Chairperson, allow me to use this opportunity to mention what happened in Gert Sibande District Municipality a few days ago. The decision by the department follows numerous cases of unrest in the municipality. The unrest has been as a result of protests organised by the community in which the community has made a number of allegations - underline "allegations" - against the municipality. Some of these allegations include the misappropriation of funds, a lack of service delivery, nepotism, poor implementation of the integrated development plan and a lack of proper consultation in terms of resource distribution and infrastructure.
Sihlalo, noma-ke lezi zinsolo ezivezwe umphakathi zibalulekile, thina bakwa- ANC asihambisani nezenzo zodlame ezithunaza isithunzi seqembu kanye nesezwe lethu laseNingizimu Afrika. Ngoba ... [Kwaphela isikhathi.] (Translation of isiZulu paragraph follows.)
[Chairperson, these allegations are serious despite the fact that they were brought up by the community. We, as the ANC, are against acts of violence that are tarnishing the dignity of the party and our country, South Africa, because ... [Time expired.]]
Okay. Thank you, Chairperson. [Applause.]
Madam Chair, hon Minister, Deputy Minister, hon members, ladies and gentlemen, while listening to the hon Minister and the hon Sibande I had cold shivers. I thought, where did they get my speech from? They are plagiarising my speech. So, it's great to hear you saying such very positive things. Thank you very much. But, nevertheless, I shall proceed with my speech even if it concurs with yours.
Angisho ukuthi akekho olapha eNdlini namuhla ozokuphika ukuthi ibuhlungu inhliziyo uma sihamba sibona imijondolo nemikhukhu lapho abantu bethu beh lala khona. Angisho ukuthi kukhona ozophika lokho na. Akekho. (Translation of isiZulu paragraph follows.)
[I do not think that there is anyone in this House who can deny that when we go around it is heartbreaking to see the shacks where our people live. I do not think there is anyone who can deny that. No one can.]
There is no one who can deny the shame of our society where people have to live in shacks that get flooded, that are crowded and that are totally unsuitable even as dog kennels.
The wonderful Constitution of our country - the best in the world, I am told - does not place the responsibility for providing housing solely at the door of the state. And it's tremendous to hear the Minister echoing those remarks.
In the first instance, this policy ignores the initiative of millions of people who are able, and indeed willing, to participate in the building of their own homes. It ignores the positive participation of homeowners who can create real homes and not just houses. It also underutilises and, in fact, discourages the participation of community-based organisations, nongovernmental organisations, and the private sector from contributing their initiatives, energy and resources to provide housing for the poor.
With the best will in the world and given the ever-increasing need for housing, it is not possible for this government or any government to provide the number of houses required. And we heard the Minister's projections in terms of the billions required as the years progress.
There has been a need for a paradigm shift in the policy. The government has - as it urgently needs to - accepted that the provision of housing is not solely its responsibility. Housing must not be seen as being just the provision of a rudimentary shelter. It must be seen as being part of a living environment which must include physical, social, and economic facets, all of which combine to make a house not just a house, but a home for a family.
The government, clearly, has responsibilities, no doubt about that. First and foremost, it must guarantee property rights and security of tenure. It must make ownership of property as easy as possible. The ownership of property must be extended to those who own none as quickly as possible.
Secondly, the government must put in place an urban planning system which will ensure a safe environment, a healthy environment and a pleasant environment. It must discourage the development of slums without stifling initiative and entrepreneurship. A standard Western style of urban planning cannot work in our developing society.
The government cannot escape its responsibility to subsidise basic housing for the poor and the marginalised. This it must of course do. But it must do this in such a way that these people are part of the community and are given opportunities to fulfil their potential. They must all become a part of the open-opportunity society.
The provision of basic services such as clean water, refuse removal and electricity are self-evident. However, good public transport and good roads are also required. These must be provided in the most cost-effective way possible.
What has happened is that the current housing developments have led to a high level of urban sprawl which, in turn, results in excessively high costs for the provision of basic services. It also makes the provision of efficient public transport almost impossible to achieve.
The subsidies paid to public transport get bigger and bigger and yet the services they provide are inadequate. What is needed are higher density standards and plot size restrictions on housing developments where state funds are used. High-density residential accommodation must be provided alongside major transportation routes.
The creation of public open spaces and other facilities is fundamental to building communities rather than housing blocks. In the rush to meet targets of housing numbers in low-cost housing estates, the need for community facilities has more often than not been ignored and such developments are sterile and unfriendly. Madam Chair, I shan't push your indulgence, but thank you so much for letting me speak. [Time expired.] [Applause.]
Hon Chairperson, Cabinet Ministers, hon premiers, distinguished members of this House, ladies and gentlemen ...
... ndi madekwana avhu?i, a dovha hafhu a vha madekwana ane nda pfa ndi na dakalo fulu musi Vho Minisi?a vha Muhasho wa zwa Vhudzulo ha Vhathu vho amba zwauri vho vha vhe kha fulo ?a u ?ea pfufo. Hezwo zwi ita uri vhathu vhashu hangei nn?a mashangoni vha ?u?uwedze u ita zwinzhi u itela u swikelela vhutshilo ha khwi?e kha vhathu vho?he vha Afurika Tshipembe. A dovha hafhu a vha madekwana ane nda khou sumbedzisa uri ... (Translation of Tshiven?a paragraph follows.)
[... good evening, and it is an evening on which I feel happy that the Minister of Human Settlements said that he was at the campaign to hand over the awards. That encourages our people out there in the villages to do more for a better life for all the people of South Africa. It is also an evening on which I am showing that ...]
... since the democratic government came into being, led by the collective leadership of the ANC, it is evident that the culture of democracy permeates every corner of our country. It also reverberates throughout the workplace and can be felt even in our homes.
I'm bound by South African pride to indicate that South Africans' decision to return the ANC to power once again shows that the people of this country are content with the strides that we have made in the last 15 years.
South Africans, under the wise leadership of President Jacob Zuma, are confident that we shall do more and that there will be better implementation of ANC policy, a policy that says all people shall have the right to live where they chose, be decently housed and bring up their families in comfort and security.
The principles underlying the ANC housing policy are the following. The ANC government believes that all citizens of this county have the right to essential services such as water, sanitation, refuse removal, electricity and decent housing appropriate to family and individual needs. The democratic state should do more in undertaking appropriate legislative and executive action to ensure that these basic needs are met in a progressive manner.
Given the pervasive poverty and unequal distribution of wealth and land, the ANC's housing policy should vigorously promote nonracism and nonsexism and cater more for the disadvantaged groups such as the very poor, the old and the disabled. All racially based housing institutions must be replaced by institutions that are accountable to the people of South Africa. Hostels should be transformed into family units. To ensure that women's housing needs are addressed, their full participation and influence over the institutions controlling housing must be guaranteed.
A total housing development framework should include the economy, transport, health, recreation, religion, education, environment, social welfare policies, policies which facilitate access to jobs and the restructuring of the apartheid cities, towns and rural areas.
Our housing strategy is based on sustainability in the short, medium and long term. The ANC government believes that community groups should be able to participate in the design, implementation and management of their housing. We therefore advocate the introduction of a housing policy which encourages and supports community-controlled development initiatives.
Remember, the ANC-led government's housing policy is more than the delivery of a product. It is a process that contributes to the cultural, economic and social development of the entire society and is, therefore, part of our strategy to improve people's total living conditions.
Beyond any doubt, I am certain that South Africans witnessed that the apartheid housing policy focused on the housing needs of middle-income households at the expense of the disadvantaged. This policy's biggest impact was that it resulted in many and varied housing challenges, for instance the urbanisation of poverty and the proliferation of slums in urban areas.
To address this, the ANC Ministry of Human Settlements is vigorously implementing the Breaking New Ground comprehensive plan for the development of sustainable human settlements, with there being at least one project in every province that will improve the living conditions of about 103 000 households in informal settlements.
To achieve this goal, hon Minister Sexwale should strive to encourage a culture of working with a sense of responsibility within the department, because this must happen and be visible in order to lessen the noise made by some opposition parties as a weapon. We are also committed to ensuring that the poor men and women in both urban and rural areas have favourable access to building credit facilities. We also advocate the restructuring of the housing finance and subsidies system so as to target those most in need of assistance.
We reject the privatisation of land for low-income households, as we believe that it is the state's responsibility to ensure that low-income households have easy access to well-located, affordable land while also emphasising that low-income housing should not be equated or confused with poor-quality housing.
I have additional measures, or policy proposals, that will need to be undertaken by the developmental state to support the recommended shift in funding for housing and human settlements. These are: intervening in the industry to curb spiralling prices in respect of building materials in favour of house construction; adopting a central planning approach for the purposes of directing resource allocation and an overall co-ordinated response to prevailing socioeconomic trends in a manner that is not undermined by the regional administrative complex; prioritising metropolitan areas and large cities for interventions that seek to fast- track the upgrading of informal settlements and ensure national spatial restructuring in view of the space economy and preferred development trajectory. Is my time up? I'm sorry. Thank you. [Time expired.] [Applause.]
Chairperson, hon Minister, the Deputy Minister, hon MECs, hon members, ladies and gentlemen, mandibulele ngeli thuba lokuba ndihlomle ngeBudget Vote no 26 Human Settlement. [Let me thank you for this opportunity to comment on the Human Settlements Vote, Budget Vote No 26.]
I would like to begin by reaffirming what the hon Minister, Mr Tokyo Sexwale, said in terms of his commitment to co-operative governance. He referred to everyone - himself and the MECs - as the team, which is what we are, regardless of which party we represent. This is because the issue of housing cuts across party and colour lines. We must ensure that everything we do is done primarily to improve service delivery and the lives of the poor that all of us represent. So, it is very important that we put these people first.
There is a great deal in Mr Sexwale's speech that is to be welcomed as we set about delivering homes for all our people in the province of the Western Cape. In fact, most of what the Minister said is exactly what I said in my budget speech two weeks ago. [Interjections.]
Firstly, the hon Minister injected a healthy dose of realism about what we can achieve with the current constraints we face. It is true that we are now officially in a recession, a recession that is causing job losses. As unemployment increases so too will the demand for subsidised housing. It is also true that we face a severe funding shortfall nationally, which means that as a province we cannot deliver the number of houses that we would like to. As the Minister noted, if the current trends continue we will be faced with a national funding shortfall for housing of about R253 billion by 2016.
As things currently stand in the Western Cape, with a budget of R1,5 billion we can only deliver approximately 16 000 houses and 18 000 serviced sites, an untenable situation when you consider that the backlog in the province is estimated at around 450 000 to 500 000.
Studies conducted by the Western Cape department of local government and housing indicate that with this trend the backlog in the Western Cape could have doubled to 800 000 by 2040 owing to migration in the province.
To ensure that, come 2040, we are not in a situation in which the housing backlog has doubled despite all our efforts, we need to do a number of things. Some of these were mentioned by the hon Minister today and yesterday. Firstly, we need to make sure that we get value for money on all existing housing projects. This means rooting out corruption and political infighting, things the Minister mentioned here, that can cause the housing projects to stall, get blocked or fail completely.
As the hon Minister said, corruption remains a major challenge throughout the housing delivery environment. It is encouraging, therefore, that his department has strengthened its relationship with the Special Investigating Unit to take stern action against offenders. This is a process that has been mirrored in the Western Cape housing department as well.
Secondly, we need to revisit the way in which we deliver houses. We need to take a long, hard look at whether the current method of housing delivery, which is primarily through project-linked subsidies for RDP-type housing, is able to maximise what we can deliver with the resources at our disposal. In this regard, the national Minister made some very good points about focusing on in situ upgrading, which I share completely. In fact, it was a key theme of my budget speech two weeks ago.
Given the extent of the housing backlog, it is crucial that we focus on what can be achieved with what we have. In situ upgrading of informal settlements is one way to increase people's dignity now through providing them with serviced sites that can be upgraded gradually as more resources become available.
Another way in which we can achieve more value for money is to look seriously at the viability of building higher-density structures. I am aware that there are certain stigmas around building flats instead of houses, but we need to be realistic about what can be achieved with the funding we have and the land we have.
If we were to continue with the current low-density model, we would need enough land to stretch from Cape Town to Mossel Bay, because, currently, in terms of the backlog, we need about 9 000 hectares of land to be able to deal with this backlog.
It is this reality we must remind ourselves of as we deliver houses. Nothing is achieved by raising the expectations of people when it is impossible to meet those expectations. That is a recipe for conflict that can be avoided. This is a lesson that the N2 Gateway project has taught us very clearly.
As we go forward in partnership with the national Department of Housing and the municipalities of this province, we will remain ever mindful of the challenges we face. More importantly, we commit ourselves to engaging constructively with all our stakeholders in finding innovative solutions to delivering houses for the people of the Western Cape.
I must also add that we share the Minister's sentiments completely with regard to the policy changes that he suggested, because we must begin to have a situation in which all the funding for housing goes into one pot, as opposed to the current situation.
We must also begin to address the issue of the People's Housing Process, PHP, which the hon Mabija just spoke about now - in that we must emphasise the importance of encouraging our people to be involved in how their houses are built, so that they take responsibility going forward. With those few words, I thank you, Chairperson. [Applause.]
Thank you, Chairperson. Hon Minister and Deputy Minister and hon members ...
... Ngqongqoshe, kanye nePhini lakho, ngiyakubongela ngoba unikezwe umsebenzi wokuthi usikhiphe ebugqilini bokuhlala emijondolo. Ngiyazi-ke ukuthi iminyaka emihlanu yisikhashana nje esincane, singasibuka kuyisikhathi eside kodwa-ke kuyisikhathi esincane.
Ngoba-ke nibala nezindawo lezi zethu zokudabuka, ngalokho ngithi-ke kuwe ama-Major stake holders alaphaya kuma-Traditional Councils akhona cishe ezifundazweni eziyisikhombisa,lokhu okuthiwa ama-Traditional Councils kunemitheshwana-ke ebusa lezi zindawo zama Traditional Councils ngocela mhlonishwa Ngqongqoshe nama MECs akho ukuba nizifake lezi zinduna emakhaya ngoba kunemitheshwana engabuye ivimbele abantu bakithi ukuthi bacoshe intuthuko uma ingalandelekanga.
Ngikufisela inhlanhla-ke okuwukuthi ngoyibona iphela imijondolo eThekwini, ngoyibona iphela imijondolo eKapa, ngoba ikake iKapa nje nakwamanye amalokishi akithi ikhona. Bese ngithi-ke kubafowethu nakodadewethu - lokhu okuthiwa yi-opposition asingakuthathi nje ngokuthi yintwana encane kodwa yinto eqaphe intandoyeningi yethu - njengezwe elisentandweni yeningi kufanele ukugxeka kubekhona ngoba uma ungasagxekwa ngeke ubone kahle ukuthi kuhamba kanjani. Alikho-ke isoka elingenasici ezindaweni zalo. (Translation of isiZulu paragraphs follows.)
[... Minister and your deputy, I congratulate you because you were given the task of liberating us from the slavery of living in shacks. I know that five years is just a short period of time. We can regard it as a long period of time whereas it is a short period of time.
Since you are referring to our rural localities, I am saying to you the major stakeholders who are in traditional councils exist in almost seven provinces. There are rules governing these traditional councils. I request you hon Minister, and your MECs, to involve headmen in rural areas, because these rules might prevent our people from being assisted with development if they are not looked into.
I wish you luck, hoping that I will see fewer shacks in eThekwini. I can see that fewer shacks are being built in Cape Town. The shacks that you see surrounding Cape Town are also there in our townships. Let me also say to my brothers and sisters that we do not have to undermine what is referred to as the opposition and regard it as a minor thing, because it is something that safeguards our democracy. In a democratic country there should be criticism, because if you are not criticised you will not know whether you are on the right track or not, since there is no one who is perfect.]
Thank you, Chairperson. [Applause.]
Chairperson, it is a great honour to have this opportunity to address this august House today on this Budget Vote. Allow me, Chairperson, to greet the Minister of Human Settlements, the hon Tokyo Sexwale, whom I welcomed yesterday in the National Assembly to this vibrant Human Settlements family.
I also recognise the presence of the Chief Whip and the Deputy Chairperson of the National Council of Provinces. I also welcome in our midst the chairperson of the Select Committee on Public Services, the hon member Pat Sibande. I must also welcome the Director-General of Human Settlements Dr Benny Kotsoane and his team, officials from our department and honourable guests, the Western Cape MEC Bonginkosi Madikizela, and Salga councillor Clarence Johnson.
This Budget Vote takes place as we mark the 54th anniversary of the Freedom Charter, the historic document founded by the people of South Africa from all walks of life. It also takes place as we celebrate the 33rd anniversary of 1976, a watershed year, which marks the heroic action by students of the class of 1976 whose clear message was "Genoeg is genoeg" [Enough is enough] Hence, we welcome the initiative by the Department of Human Settlements in marking this anniversary on 26 June 2009 at Eshowe in KwaZulu-Natal with Youth Build, a programme in which young people build housing units for the elderly.
As we embark on the war against poverty, we reiterate and commit ourselves to the assertions of the Freedom Charter of "housing, security and comfort for all". This developmental state led by the ANC has taken upon itself the translating of these dreams into a reality. As we execute our new mandate, we will be building on the foundation laid by the Breaking New Ground policy.
We are unapologetic in asserting that planning together, budgeting together and co-ordinating together remain the prerequisites and non-negotiables for the realisation of integrated human settlements. We therefore appeal to the National Council of Provinces to help us co-ordinate these complex planning processes.
The department will also be hard at work streamlining funding mechanisms so that housing grants are consolidated into a single grant that responds to human settlement requirements. There is also a need to eliminate unnecessary bottlenecks, contractors must be paid on time and EIAs - environmental impact assessments - must not be delayed.
The provision of homes to our people cannot be the responsibility of government alone. We need the participation of all sectors of our society. Working together, we can do more. The people must be at the centre of everything we do. Beneficiaries must be active participants in the provision of human settlements. As we build integrated human settlements, we must also build a responsible citizenry. I am certain that the NCOP will take a special interest in its oversight role in addressing issues of a responsible society. This country can ill afford the kinds of demonstrations we have recently witnessed in the Western Cape with regard to the N2 Gateway project.
Inasmuch as this government sympathises and understands the people's level of poverty, we certainly cannot promote lawlessness. Services must be paid for, otherwise they will not be sustainable. Who in this House stays in a house or a flat they do not pay for? This is the kind of consumer education we would like the NCOP to help us address. Tenants of the N2 Gateway project have a contractual agreement. They have to pay rent; they qualify as having to pay rent - they are not indigent. There is an issue with subletting, meaning that there are people in those houses who do not qualify - who occupy those houses illegally.
The role of emerging contractors cannot be overemphasised. Unfortunately, they have a tendency to continue emerging ad infinitum. Something must be done to remedy this situation, but we will uproot fly-by-nights in the building industry. We need contractors who are prepared to contribute constructively so that government gets value for money.
We commend the continued contribution made by the financial sector, but more needs to be done in order to enhance this partnership. Of course, we do know that profit margins are low in the low-cost housing environment, but the establishment of the Housing Development Agency will bring about human settlements housing delivery in economies of scale. This will only be realised with the active participation of the private sector, particularly in the rolling out of housing rental stock and bonded houses.
In light of this, there is a need to establish a macro-organisational framework in order to facilitate a convergence of different government mandates for human settlement development. This is underpinned by a set of principles that are necessary for strengthening co-ordination in government.
The priorities of the framework include: to compile a national development plan for human settlements, produce settlement level plans and promote innovative project development; to align funding streams and existing built- environment-related grants; and to ensure, at an implementation level, effective project management and capacity development which must also speak to the issues of monitoring, evaluation and risk management.
In the process of providing proper homes for our people, we will also endeavour to provide community residential units. We will continue to revisit the issue of hostel redevelopment. We also need to promote inclusionary housing, meaning that where there is property development at least 20% of that development should be set aside for low-cost housing.
In response to the government's rural development drive, the department will introduce in the current financial year a rural housing subsidy voucher programme to assist rural households to source building materials for building their own homes or even for incrementally improving their homes.
I am happy to announce that there is a newly appointed council of the National Home Builders Registration Council, NHBRC, chaired by Ms Granny Seape. It is critical that the NHBRC focus on issues of quality and strict adherence to building norms and standards as spelt out in the Revised National Housing Code. It must also make its presence felt in all provinces so that all human settlement projects are registered with the NHBRC.
This entity must be able to address the complaints of the housing consumers timeously. Failure to do this results in the payment of huge sums of money to fix structural defects that would have cost less had the matter been dealt with appropriately. The inspectors must inspect houses at all stages of housing development, especially at the foundation level. We call upon all provinces to beef up the inspectorate and ensure that more inspectors are trained. Prevention is better than cure and always saves costs.
We welcome the establishment of the Housing Development Agency, HDA, launched in March 2009, which will assist in fast-tracking the delivery of integrated human settlements. In the main, the HDA will primarily support the provinces and municipalities in the acquisition of land. This support will be delivered through implementation protocols developed with all parties within an established intergovernmental relationship framework. Our objective is to do away with unnecessary bottlenecks in order to fast-track human settlement delivery.
UMongameli welizwe obekekileyo uJacob Zuma kwiintetha azenzileyo apha e Palamente ubeke phambili ukubaluleka kolwakhiwo lwamakhaya. Ukhuthaze onke amasebe ukuba asebenzisane, ahlangabezane ekufezekiseni amaphupha oluntu. Eli sebe ayilosebe nje lezindlu, lisebe elijongene nazo zonke iimfuno zokuhlala kakuhle koluntu ukwenzel' ukuba amakhaya akhiwe kwiindawo ezikufutshane nempangelo.
Sithi makusetyenziswane, sihlaba ikhwelo kuye wonke ubani- oosomashishini abasakhasayo, kuSanco nakubo bonke abahlali ukuba eli sebe lizimisele ukusebenzisana nabo bonke abantu, eli sebe likhokelwa nguMphathiswa uTokyo Sexwale.
Mawethu, sithi huntshu kubantu abakha izindlu ngenkqubo ye-PHP, sifuna ukuyixhasa ngakumbi le nkqubo. Lo rhulumente ukhokelwa yi-ANC uyakhathala ngakumbi ngabantu, uthi abantu baya kulawula. Masisebenzisane mawethu silwe indlala. (Translation of isiXhosa paragraphs follows.)
[The hon President of the country, Jacob Zuma, in the speeches he made in Parliament has stressed the importance of building homes. He encouraged all the departments to work together, and to help each other in achieving the dreams of the people. This is not just the department of houses, but the department that caters for all the needs related to human settlement so that houses are built closer to the workplaces.
We are saying let us work together; we invite everybody - the upcoming entrepreneurs, Sanco and the community at large. This department is committed to working with everyone and it is led by Minister Tokyo Sexwale.
Hon members, we congratulate the people who build houses through the PHP programme, and we would like to support this programme more. The ANC-led government cares more about the people and says, "The people shall govern". Let us work together to fight hunger.]
This Ministry is committed to making sure that the Breaking New Ground pilot projects identified in all provinces go ahead as planned. We will also ensure that there is in situ upgrading of informal settlements in all provinces. The time has come for all peace-loving South Africans to join hands with the Team Human Settlements on its journey to make sure poverty will be history. I thank you. [Applause.]
Ms L HLONGWA (KwaZulu-Natal): Chairperson, once more, we are grateful to be given an opportunity to say a few things with regard to the Minister's budget speech today.
Sifisa ukuqala ngokubongela uNgqongqoshe neSekela lakhe ekuqokweni ezikhundleni ezibaluleke kakhulu. NjengeKwaZulu-Natali sizobasekela kakhulu ekwenzeni isiqiniseko sokuthi loko okushiwo usomqulu wokhetho lombutho wesizwe uKhongolose kuyafezekiswa kuleminyaka emihlanu ezayo. (Translation of isiZulu paragraph follows.)
[We would like to start by congratulating the Minister and his deputy on being elected to such important positions. As KwaZulu-Natal, we will support them in ensuring that what is contained in the ANC manifesto is achieved in the next five years.]
KwaZulu-Natal is a rural province, but a province with great potential to develop into a haven in South Africa. Human settlement development is again at the centre of government under the leadership of the hon President, His Excellency J G Zuma.
The delivery of decent houses to our people requires a co-ordinated effort between the provinces and the municipalities, which in this case is minimal due to power struggles. We noted from the Minister's speech that in order to have human settlements a new approach needs to be adopted. A paradigm shift beyond housing is needed, and our understanding, as KwaZulu-Natal, is that we need more of a political will first, then implementation.
We are, however, proud to stand here and salute the previous MEC, Comrade Mike Mabuyakhulu, on being the first MEC to pioneer the slums clearance Act in line with the Millennium Development Goal of eradicating slums by 2014. Although the department was challenged in a court of law by the shack- dwellers who perceived the move to be unconstitutional, we are very aware that shack lords were behind some of these shenanigans in that they made money out of poor people.
Our task as the provincial government is to defend the poor and better the lives of all. As we said at our 2007 conference, we are advancing towards a caring society. We have no intention of chasing these people out of their homes, but we have an obligation as government, as prescribed in our Constitution, to restore dignity through decent shelter.
The province has ventured into a new approach of public-private partnerships to enhance service delivery and supplement the current government programme, and we are happy to hear from the Minister's speech that he supports this initiative.
A classic example is that of Eshowe, which the Minister has referred to, where about 76 houses were built by our youth for elderly people. This is really what is espoused in the Freedom Charter and we are very grateful that you came down to our province to hand over these projects to needy families. We appreciate the R150 million allocated to disaster management relief for the province, because in the past we have had unprecedented disasters that we had not planned for, which claimed lives and resulted in the current overexpenditure we are servicing as a province.
The province, with its limited budget, is committed to the delivery of quality housing by ensuring that, prior to handing-over functions, the houses are subject to various quality tests to try to minimise the exploitation of government resources by unscrupulous businesspeople. We want to hold the creators of the workmanship accountable for their actions, and we shall not delay in acting against corrupt people, either as builders or in the department itself.
We want to request the Minister to hold an indaba with all the stakeholders, at which housing matters are ironed out, because shack dwellers think that if we build houses for people, we are taking away what is theirs. We are saying, as the province of KwaZulu-Natal, that local government must be brought to the party, so that we iron out the issue of waiting lists, where we see councillors selling houses, and those councillors, most of the time, are in cahoots with department officials. We want this to come to an end.
The province of KwaZulu-Natal recently launched the rural housing development project in the northern part of KwaZulu-Natal to accelerate decent housing. This project is being contested by traditional leaders who perceive this as a means to create townships in their areas of jurisdiction. Once again, we want to advise the Minister that maybe there is going to be a need for him and his colleagues in the Department of Co- operative Governance and Traditional Affairs to meet and develop a workable plan, so that we avert this challenge before it spills over into other provinces.
Siyafisa Mhlonishwa Ngqongqoshe ukuthi uselekelele lapha KwaZulu-Natali sinabantu abaningi abaxhamula ekwakheni izindlu kodwa asibazi ukuthi bangobani. Sifisa ukuthi usinike uhlaka lwabantu abakha izindlu ... (Translation of isiZulu paragraph follows.)
[We wish, hon Minister, that you could assist us in KwaZulu-Natal; we have people who benefit from building houses, but we don't know who they are. We wish that you, Minister, could give us a database of people who build houses ...]
... in terms of gender, age and demographics, for us as the ANC to gauge if we really are denting unemployment and bringing about work redistribution.
The province is currently pioneering a project with regard to an accredited military veterans' policy in line with the ANC's Polokwane conference resolutions to provide shelter to these families, who, in hard times, fought for us to attain this democracy we boast about today. Although we are facing a challenge in this area, as a province we are not going to despair.
We are facing a challenge in the area of hostel redevelopment to recreate new human settlements for families. This programme is moving at a slower pace and it needs more funding. We, therefore, want to plead again here that in future we be allocated more money towards this project for us to realise the Freedom Charter's vision.
In conclusion, the province is currently embarking on the enhancement of the research unit to explore other alternative building practices which are both cost-effective and ensure quality, especially at this time of recession. We hope to have collected information in this regard at least by the end of this year, so that, when we start next year, we will have this programme ready for implementation.
We feel that we need to emphasise that money allocated to housing as a vote in our province is not enough. Therefore, this hinders us from building more decent human settlements over a five-year period. But we are very grateful for what we have been allocated. In this term, we have committed some money to the training and development of both women and the youth to encounter the economic downturn and for them to be able to create jobs for themselves. We welcome the budget by the Minister and we wish you well. Thank you. [Applause.]
Thank you, Chairperson. Hon Minister Sexwale, hon Deputy Minister Zoe Kota-Fredericks, hon Members of the National Council of Provinces, please allow me to convey greetings from our chairperson, councillor and Mayor of the City of Johannesburg, Mayor Masondo, and the Salga leadership to you on this historic occasion of the first Budget Vote for the Department of Human Settlements.
If we traverse our landscape of South Africa, we see the historic Cape Dutch houses. We see the decorative Ndebele houses, the humble stick-and- mud houses in the eastern part of our country and the so-called "matjieshuise" (mat huts) of Namaqualand. We believe that this is where our people have built their own houses. I trust that during your term of office you will bring hope and happiness to our citizens, having gained an almost two-thirds majority, and I hope that nobody is going to stop you when you get going.
If we take the intent of the Fourth Parliament, it is a time for renewal. It is a time for fresh implementation and a new style of governance. It is a time for innovation, new ideas and approaches to turn around the big backlog that we have. Funding has been secured, promises have been made and that funding will realise 2,2 million houses. We know that Minister Sexwale is the only Minister in terms of implementation who needs to deliver on time and on budget and a job well done. So, therefore, Minister, you will be the only Minister in terms of the construction and home-building industry who will be receiving happy letters.
Housing delivery is not merely about the delivery of houses, and we welcome the fact that intergovernmental relations have been secured through the integrated approach to human settlements. At Salga, we have also notices the efforts of our international donor community in so far as as the Dutch are concerned, who directly fund certain project on social housing, and were present yesterday. Our Cuban compatriots were also present at your Budget Vote debate yesterday.
We have also noticed that initiatives to build the capacity of the councillors through the Wits Business School have ensured that certain blocked projects have become unblocked. These are all matters that happened last year. I also believe that the unfinished business related to the public participation processes of the NCOP will be attended to.
In order to create sustainable human settlements, one needs to align housing delivery with other strategies such as infrastructure, Public Works programmes and basic services. With particular regard to basic services, reference has been made to climate change and the very high cost of services like water and electricity.
Many of these facilities are currently the mandate of municipalities. Therefore, it would be logical for municipalities to also carry the responsibility for the delivery of houses, as part of and aligned with all other aspects of the built environment. Furthermore, municipalities serve as a logical site for the effective alignment of interdepartmental and intragovernmental funding streams that eventually contribute towards the development of sustainable human settlements. I can share with you that in the many meetings on integrated development plans, the first thing that is said, is: "Mr Mayor, I don't have a house," or, "Mr Mayor, I am struggling." "Ek kry swaar; ons trek swaar." [I am struggling; we are having a difficult time.] These are the words uttered by citizens and we have the ability to respond to them.
Municipalities form the sphere of government that is closest to the communities and are, in most instances, the implementing agents for national and provincial government. We are, therefore, able to respond to local needs and to deliver tailor-made services. The other matters regarding consumer services, etc, can be attended to at local government level.
It is often said that municipalities do not have the capacity to perform the housing function. Yet, until now, municipalities have not been granted the responsibility of, or the funding for, housing and, therefore, have not needed to build their capacity for housing. Once given the full mandate with the necessary funding and the time to build their capacity, municipalities will be able to perform the function, as has been shown with other municipal functions in the past. This position we align with our linkage to united cities and local governments; we align it to the policy statements of the ruling party and, as such, we will pursue this matter of policy alignment.
Some municipalities, despite the fact that they do not have a funded housing mandate, see housing as their responsibility to their constituents and use municipal funding for the delivery of sustainable human settlements. We have demonstrated clearly that we do have the capacity to deliver.
In September 2005 a policy framework for the accreditation of municipalities to perform housing functions was adopted. Eighteen municipalities were prioritised for accreditation. Until now, no municipality has even been assigned functions for level 1 accreditation.
In addition, the housing Minmec resolved that the accreditation process will never go beyond level 2, not because of capacity constraints on the part of municipalities, but because it may mean assigning the function to municipalities - something which the provincial departments of housing are opposed to. This is a matter of concern to Salga. It is clear that the accreditation process is not working. There is a need to consider the devolution of the function to municipalities.
Last year, Cabinet took a decision to the effect that the housing function should devolve to municipalities. We hold the view that the Minmec will not assign the function to municipalities; it will only delegate functions in terms of accreditation levels 1 and 2. Accreditation will maintain the current division of responsibilities for housing between the provincial and local governments and will not improve the efficiency of delivery.
We are really concerned about this. Change needs to happen at the point of delivery, preferably at the project implementation level and not at the higher levels. Assignment of the delivery function to municipalities provides an opportunity for provinces to monitor and supervise delivery, and even intervene in municipalities and develop appropriate capacity to focus on this function. This is in line with the constitutional architecture.
Chairperson, Salga supports this Budget Vote No 26 - Housing. Thank you very much. [Applause.]
Hon Chairperson, hon Ministers, Deputy Ministers and hon members and the House at large, good evening. Let me start by agreeing with the Minister that the people of South Africa adopted a living document, the Freedom Charter, in 1955. Secondly, I agree with the Deputy Minister about the approach to rural housing. Thirdly, hon Minister, your budget is a little bit skewed. More money goes to operational expenditure than to capital expenditure.
I don't want to comment on whether I am giving my support or not. There should be continuous support to provinces by the national department, particularly by the Eastern Cape. If you look at the Alfred Nzo and O R Tambo districts, we intend supporting you by feeding you reports, hon Minister.
The focus should be on the implementation of cohousing. The word "cohousing" may not be common in South Africa, but is taking off all over the world. By being ecologically sensitive, building a community before the houses are built, incorporating recycling, compensating for smaller houses by increasing common facilities, establishing gardens and orchards, sharing transport, using alternative energy, providing fully for the total supervision of young children, taking common responsibility for security, making room for adults and orphans and by generally ensuring that residents leave only a tiny carbon footprint, cohousing is going in the direction the world is going in. Cohousing accommodates people, creates viable communities, preserves the environment, creates job opportunities, optimises travel arrangements, and decreases the demand for health care.
For a government that is challenged daily to provide service delivery, cohousing will deal with sanitation through having package plants on site, recycling water, tapping the wind and sun for energy and becoming self- sustaining. The provision of bulk services could be slashed by 80% or more.
In conclusion, I suggest that the policy-makers should help in taking us forward rather than keeping us back. Many townships look more dismal than they did at the height of apartheid. That is a damning indictment against this department.
Now that the name of the department has been changed, let fundamental thinking around housing also change. We hope that with the changing of the name, a lot is going to change. We also hope that when we are talking about human settlements there will be security, there will be comfort and the people of South Africa will also enjoy the fruits of their labour as enshrined in their struggle, particularly, on 25 and 26 June 1955. I thank you. [Applause.]
Hon Chairperson, hon Minister, hon Deputy Minister, it has become a natural trend that houses rapidly deteriorate owing to poor workmanship and poor quality in many areas in our country.
In the 1985 uprising we fought against these "pondokkies" [huts], but we are still finding them today in the areas in which we grew up. We need to restore the dignity of our people. We need to stop building houses like in Soul City and Dakota in the Northern Cape. We need to start building decent houses for our people.
It is high time that government gets serious about bridging the divide and creating communities in which the rich and the poor can live side by side. I hope that the government and the ruling party can change this policy. Stop building 40m2 houses and start building 74m2 houses so that people can have some dignity. [Interjections.]
Bou huise waarop mense kan trots wees en wat as sekuriteit by die bank kan dien. [Build houses that people can be proud of and that could serve as security at the bank.]
We need to build sustainable housing that is energy efficient.
Hou op om swak gehalte materiaal, swak balke en sinke te gebruik. Te veel sand word saam met die sement gebruik - tien kruiwaens sand en een sak sement - die huis sal nie so hou nie. (Translation of Afrikaans paragraph follows.)
[Stop using materials of poor quality, such as beams and corrugated sheets of poor quality. Too much sand is being used when mixing the cement - ten wheelbarrows of sand and one bag of cement - the house will not last this way.]
Emphasis must be placed on integrated human settlements.
Bou ten minste 'n waardevolle huis. [At least build a decent house.]
These settlements must include infrastructure such as roads, transport, electricity, water, refuse removal, community facilities, schools, shops and recreational areas.
During the public hearings on this Budget Vote it was discovered that the Rural Housing Loan Fund, that claims to be a "national wholesale housing institution", had failed the rural community dismally in terms of its disbursements and geographic allocations. With regard to its national loan assistance budget, the fund gave 0% to the Northern Cape; 3% to the Free State; 6% to Limpopo; and 8% to the Eastern Cape. The bulk of the loan fund was utilised in Gauteng, which received 31%. We must start getting serious about the country and we must start getting serious about the people of South Africa in order to uplift them. Thank you. [Applause.]
Hon Chair, hon Minister and Deputy Minister, I must say to the Deputy Minister that I think she probably feels very lonely when she looks at the gender composition of the delegation. She must be very lonely. Nevertheless, I must also say that I find it very interesting for the hon Gunda to have spoken in the manner that he did. Being from the same province, I know that the hon Gunda's construction company has been declared insolvent precisely because of the issues he raised. So that is very interesting, Chair.
I also find quite interesting the way in which the DA and Cope in particular approached the debate. It reminded me of the Nationalist Party. The Nationalist Party, in fact, adopted the Freedom Charter as not only their living, but guiding document.
Immediately after the Freedom Charter, the Nationalist Party went to their general council and declared that there was no sense in their existence, because the Freedom Charter and the ANC were the most relevant vehicles to follow. So, they are probably trying to say to us that, yes, of course, the ANC ... [Interjections.] Of course it is; it is.
I pity the MEC from the Western Cape, if he is still the MEC, and Helen Zille has not dismissed him already, because he agreed with the Minister's speech, and the Minister premised his entire speech on the Freedom Charter which Helen Zille does not agree with. That is why I wonder if he has not already been dismissed.
Yes, of course, hon Lees, the ANC will always be the first organisation to accept critique, precisely because the ANC is guided by a very fundamental principle of self-criticism. We don't wait for the opposition to criticise us, but instead are upfront. Where we are doing well, we'll say we are doing well. Where we don't do well, we'll say we don't do well - and that's exactly what our hon Minister did.
He made an assessment and he accepted that, yes, of course, there are certain things that did not go well and that there are certain things that did go well. There are areas the ANC-led government needs to improve in order to ensure that the lives of our people improve for the better in this particular dispensation.
The chairperson of the select committee also emphasised this issue, because it's a matter that really did not go well with us as a committee. One of the challenges facing the country, as we move towards achieving the Millennium Development Goal of halving poverty, and that the ANC has identified, is the question of the aggressive creation of employment through infrastructure development.
We are faced with global economic challenges. Yes, of course, we are seeing unscrupulous behavioural patterns emerging not only in South Africa, but in the world, and these patterns are also right on the doorstep of South Africa, on its borders. As a result, you will see that the infrastructure instruments we are going to need in order to advance or expand our programme of ensuring that we create employment for our people are going to be compromised. It is, therefore, important that the department be very sharp in ensuring that, as we deal with this particular issue, we do not do anything wrong.
For us as the committee there is the issue of rural housing development. We have seen a particular pattern, of course. We want to develop or change the structure and fibre of rural areas in the townships - change the kind of house we are building in these particular areas.
I would like to give examples of a number of areas, but, in this instance, let's take the North West where you will find a village with four-roomed RDP-structured houses. Our people in these particular areas do not want to move into these houses, because these are not the type of houses they want. They believe that the rural or village nature of their areas must be preserved. So, we think, as a committee, that it is important to look very carefully into this particular area or we'll end up with a situation in which we are left with houses that are not occupied by people who qualify to occupy these houses.
We have also realised as a committee - Chair and hon Minister - that the bulk of the budget of the department goes to provinces through transfers and that there is a decline in your budget - even after your annual report or the previous department's annual report. The difficulties the department experienced through intergovernmental relations in housing provision are acknowledged. We still find a decrease in the subprogramme as allocated. We would have expected that, having identified this as a problem, the department would have increased the budget in order to increase the capacity of provinces to improve the capacity of municipalities in the provision of houses.
So, I think this is an issue that the department needs to look at seriously, because that particular subprogramme dealing with intergovernmental relations needs to be beefed up to ensure that your provinces are capacitated and that your municipalities are capacitated. Also, this will give the necessary support to your contractors in our provinces and so forth.
Linked to that is the question of the President's statement committing the administration to the creation of 500 000 jobs by December through the Expanded Public Works Programme. We are saying that the department is not really telling us exactly what the buy-in is. What exactly is the department going to do to ensure that it contributes towards the creation of these 500 000 jobs?
We need to strengthen our capacity or involvement in building co-operatives to ensure that young people form themselves into co-operatives, for example, in brick-making, in plumbing or in whatever activity has to do with the process of building or the building environment. Thank you very much, Chairperson. As the ANC we support the Vote and hope that the department will do well. [Time expired.] [Applause.]
Chairperson, considering that this House has been in session for the purpose of accommodating three Votes, namely Basic Education, Home Affairs and Human Settlements, I am astounded at the energy that is displayed by the hon Tau. [Laughter.] I had thought that by now he would be very fatigued, but it is very clear that the NCOP rocks. [Laughter.]
Let me utilise the few minutes that I have to respond to some of the issues and maybe say something as a parting shot. From the outset I just want to place on record that we are not responding to these issues as a finality. We will be engaging with hon members from time to time in the process of serving our people, so I am not going to respond as a way of saying how wise or clever one can be in dealing with issues that have been raised. It is open season for communication and our office is open to be interfaced with. The Deputy Minister is here, as well as the officials. I am quite accessible. I am just across the street from here so that I will constantly be around as a student of this House.
I want to reiterate that I know the budget is more focused on housing. That is how it is right now, but there will be a need for us to make that critical paradigm shift. It is about human settlements. I hope more of us will begin to learn to pronounce "human settlements" with an "s". Even some of the members in my old office keep on saying "human settlement". It is about settlements.
I posed a question earlier. Nineteen years since Nelson Mandela was released, or 15 years into democracy, how many towns have been built? Johannesburg was constructed, and under apartheid they went on to build Sandton, a very viable satellite city. Then there is Randburg. And around Cape Town there are also other towns. Human settlements, once again, is not about glorifying squatter camps and putting up townships.
The partnership that I want to have with you as your Minister and representative in the Cabinet is that we are here to build real settlements, so that in this century of urbanisation, as was articulated by the United Nations Habitat Conference, this country will move and change in order to become a developed country. The day we can say that South Africa is developed will be the day that we have arrived. It will mean that the cities have gone into the countryside.
I appreciate the comments that were made regarding the development of the countryside insofar as we are co-operating with the hon Sicelo Shiceka's Ministry for Co-operative Governance and Traditional Affairs. The hon Zulu asked us to think about that. He said that we needed to link up with traditional leaders. That is why the policy of the ruling party is beginning to emphasise rural development. Mistakes were made by ignoring the fact that the rural areas contain over 60% of our citizens. That is why they keep coming to the cities. Our having to clear the squatter camps and the informal settlements is not the main mission. That is not the main mission.
It is an irritation to the plans, because people have arrived there and are squatting. They are telling us there is something they want. That goes for the people of old age too, who would like to have that human dignity which is mentioned in the very first line of the first chapter of our Constitution. The people are squatting next to the highways because they want to be near transportation and electricity. They also want to be next to schools, their places of work and shopping malls. They are telling us something and we are, therefore, answering.
We ourselves are not going to do this within five or ten years. It is a long, long journey. We say that we are building houses equal to the Chinese, but don't change the numbers, let's change the quality. I normally speak of a journey of 1 000 miles, that there is always the first step. This government, this NCOP, this National Assembly, the Cabinet, we have now started on this footing. It is something altogether new. This is a call to change the face of this country.
The reason I accepted this mission is that it goes beyond housing. When President Zuma asked me to serve in his Cabinet, I had been doing exceptionally well in the private sector, at the level of our operations within the JSE and in mining and so on. By taking on this mission I was saying that, whereas in the previous 10 years I had been working with the wealthiest of the wealthy, it was time for me to walk side by side in the company of the poor. I see this as a mission and I want hon members to understand that this is something I am taking on with passion.
I want to comment on one or two things that were raised here. Please be assured that we want quality to the extent that we are dealing with informal settlements. That is why the National Home builders Registration Council is so important to us. We accept the very important thing which the hon Sibande has said. And we have at least apologised for the fact that we took your speech. [Interjections.] But, that is how it is. If there's commonality between what you are going to say and what we are saying, then it shows that we are living in one country. Of course, working together we can do more and be victorious.
Somebody said that the hon Madikizela is now on that side, in Cope, and that he won't be fired by Helen Zille. Our deliberations are like chalk and cheese. It looks like some of us come from Jupiter and others are from Mars - we are very far away from one another. The purpose of sitting and debating in this House is to interrogate ideas so that we can find commonality. There will be differences, as was said by the hon Zulu from the IFP. He said that we must also accept criticism.
Uthe kithi nsizwa sibokwamukela ukugxekwa. Uma sizohlala sizwana sonke isikhathi kuyobe sengathi singabadayisi. [You said we must accept criticism. If we always get along well with each other we will be perceived as traitors.]
There will be differences. That's the reason we are here. That's all we do in Parliament - we debate. It's all about words, words and words. But those words are interrogating actions and activity so that the best ideas around actions and activity for products can always succeed.
There is an example we were told about. I asked the hon Mlenzana about the cohousing he mentioned in his speech. I looked at what he was saying. As he indicated, cohousing comes from Vietnam. It is actually human settlements, and that's what we are doing here. That's why the Vietnamese economy, after the war with the expulsion of the Americans, has been growing at a phenomenal rate. They've been at 9% for the past 11 years. Now they're at 15% and so on, because of the kind of human settlements they are putting up.
The way we drive it, human settlements are also about the economy. They are right at the centre of the economy, because when you build houses which are the core and key component of human settlements, it is all about mining. A lot of hon members don't realise that. It is about the roof, whether it is made of iron or tiles, whether it is bricks or iron. A lot of iron and iron ore are produced. There is manganese and cobalt. All these things have to be mined and, therefore, housing construction stimulates growth in the economy, especially in the mining sector. It is a dynamo.
In so far as manufacturing is concerned, the doors, the frames, the windows, the tiles and all the other equipment one finds inside the house that is associated with production - all of it - has a multiplying effect. Then we buy curtains, carpets and kitchenware, all of which stimulate growth in retail and wholesale. It lies right at the centre of the economy, contributing to job creation, employment and also to asset ownership.
The Deputy Minister has dealt with other critical issues. We are going to be co-operating with the Minister of Rural Development and Land Reform as well as the Minister Co-operative Governance and Traditional Affairs. Those are very key Ministers. Those are more than just Ministries. Look at how the hon Nkwinti in rural development has to deal with everything that is out there in the countryside, from which we all steer clear and only go to visit when we need some fresh air. And the hon Sicelo Shiceka deals with the whole question of co-operative governance - that's Chapter 3 of the Constitution - as well as the traditional leaders. We are taking them on board and taking them seriously, because they can create stumbling blocks and bottlenecks if we don't work with them with regard to development.
The hon Gunda said that we must make sure everything is integrated. Yes, human settlements is about integration and about holistic development. It is about making sure that if you have houses here, you ask questions. Where are the schools? Where is Home Affairs? The hon Nkosazana Dlamini-Zuma said the other day that they want to put a Home Affairs office in our settlements. Why should people have to go far from where they stay to find a mall, Home Affairs, schools, a clinic and all these other amenities? That destroys something very critical which people have, namely disposable income.
Once they have their wages, after all the deductions, it must be for their own living. That is their disposable income. Imagine how many people are spending a lot of money, like one hon member indicated, on travelling this way to the north to look for a Home Affairs office 8 km away, on travelling the other way to send the children to school, and on travelling another way to work. Therefore, when you bring investments to where people are, that is when cities begin to grow. That is when people appreciate that now they can have a double storey, because land has to be developed in an intensified manner. That's how you start having the development of another city. That's where we are going. It is not really about glorifying squatter camps.
As I said, we are not trying to answer everything. People are tired. We have been here for the whole day. I want to congratulate the management which came down here from Pretoria with me. They have been here for two days and it is time for those ladies and gentlemen to go back to their families tonight. We want to thank hon members for giving us a hearing and their support. And, again, regarding every penny paid under my leadership, we are not going to allow corruption. Every penny that is being spent comes from poor people. The rich can always find insurance for their money, but the poor people are not insured. They are the people who we have to fight for while making your words here credible and your support for us worthy. I thank you. [Applause.]
Debate concluded.