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Balindlela: Eastern Cape State of the Province address (28/05/2004)

28th May 2004

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Date: 28/05/2004
Source: Eastern Cape Provincial Government
Title: N Balindlela: Eastern Cape State of the Province address


STATE OF THE PROVINCE ADDRESS BY THE HONOURABLE PREMIER NOSIMO BALINDLELA DURING THE OFFICIAL OPENING OF THE FIRST SESSION OF THE THIRD DEMOCRATIC GOVERNMENT OF THE EASTERN CAPE, BISHO, 28 May 2004

Madam Speaker and Deputy Speaker
Members of the Executive Council
Members of the National Assembly, NCOP and the Provincial Legislature
Honoured Kings and traditional leadership
Acting Deputy Judge President and other members of the judiciary
Executive Mayors, Mayors and Councillors
Heads of State Departments and government institutions
Your Excellencies Ambassadors and High Commissioners
Premier Raymond Mhlaba and Premier Makhenkesi Stofile
Mam'uMbeki
Honoured guests, comrades and friends
People of our province and our country

On Wednesday this week we paid our last respect to one of the beloved daughters of this province, the renowned ichthyologist, Dr Courtenay-Latimer in East London. She is the founder of a rare coelacanth species. The same week we tragically lost a young promising journalist, Mrs Nomava Moeketsi of the South African Broadcasting Corporation (SABC) through an accident. Madam Speaker with your kind permission, may I ask the house to stand and observe a moment of silence.

Madam Speaker there are hundreds of our people who are currently watching these proceedings on big screens in the following areas: Bisho Stadium, Humansdorp, Addo, Middleburg, Centane, Emdibanisweni kuTsolo, Lady Grey, Mount Ayliff and Raymond Mhlaba Sports Complex in Motherwell. There are also millions currently listening to a live broadcast of these proceedings on their popular stations including Umhlobo Wenene, CKI FM and community radio stations around the province. Ndiyanibulisa nonke.

As we gather here today to reflect share our common vision for an Eastern Cape of our dreams, we need to acknowledge heroes and heroines of our province. Standing out is our golden boy Danie Jordaan who made us proud as the leader of the 2010 Soccer Bid Committee, and Nomsebenzi Tsotsobe who will lead the South African women rugby side against Wales tomorrow in Port Elizabeth. In the same vein we wish the best of luck to our young Olympians who are heading for Athens soon.

Madam Speaker, delivering this address is a moving and humbling experience for me. It is so because we have concluded our first decade of freedom and democracy, which saw lives of millions of our people changing in a fundamental way for the better.

We developed, and progressively succeeded, in implementing our transformative policies. I stand here as part of the development of those policies and also their product as the Premier of the Province.

Premier, Rev Makhenkesi Stofile, presented to this house and the nation the remarkable achievements of the first decade of democracy on a wide range of areas, which include nation building, governance, social development and economic emancipation.

Lives of millions of people improved as they gained access to many basic services such as water, sanitation, social security support, health services, education, housing, better infrastructure in terms of roads and communications, and above all, dignified treatment and entrenchment of people's rights.

Realising that we are still faced by challenges, which include continued economic development disparities, high rate of poverty and unemployment as well as overall under development of especially the eastern regions of the province, government developed a ten-year provincial growth and development plan (PGDP). The PGDP outlines key areas of emphasis that require our uppermost attention and relentless dedication for attainment of the overall strategic objectives designed to improve and better the lives of the people, especially the poorest of the poor.

These are:

* systematic poverty eradication through a holistic integrated and multi-dimensional approach to pro-poor programming
* transformation of the agrarian economy and strengthening of household food security
* consolidation, development and diversification of the manufacturing base and tourism potential
* public sector and institutional transformation
* human resources development
* infrastructure development.

Our programme for achieving our desired goals in 2014 is progressively synergised into various municipal Integrated Development Plans (IDPs). These plans seek to respond in a comprehensive and collaborative manner to the challenges of the second decade of freedom. The development of these plans is informed by the following principles:

* state facilitated growth with stakeholders and all our people partnering to address poverty and unemployment
* efficiency and efficacy of the state to support growth and development
* strengthening of local government as a primary site of delivery
* collective financing of the PGDP roll out inclusive of the fiscus, private sector and donor communities
* an industrial strategy.

We bravely set clear and concrete targets for 2014, which include the following:

* all households by 2008 should have access to clean water
* all households should have access to proper sanitation by 2010
* reduction of households living below the poverty datum line by 80%
* reduction of unemployment by 50%
* stopping the spread of HIV and AIDS and also beginning to reverse their impact
* increasing economic growth and development by up to 8% per annum
* public sector and institutional transformation.

Fighting poverty and underdevelopment

On the front line of our strategy implementation is increasing the registration of 288 000 children for child support grants during this financial year in line with President Mbeki's pronouncement to increase the age limit to eleven years.

To that end we have set aside R24 billion for the Medium Term Expenditure Framework (MTEF). To address a number of deficiencies of the current system of grant delivery to beneficiaries, an agency of the national Department of Social Development will be established, and the Eastern Cape will be one of the first provinces to participate. This is expected to further enhance the dignity of beneficiaries through descent treatment and the integrity of the system.

An integrated food security programme called - Massive Food Production, is being intensified with R120 million set to be expended within the financial year to address poverty in all its dimensions including hunger, service poverty, income poverty and vulnerability. The programme is intended to empower people in their respective localities to be active players in local economic development, thereby transforming the agrarian economy.

As our priority is putting food on everyone's table, a programme based on household food production - Siyazondla was launched. The programme is targeting 2500 poorest of the poor households with a budget of R30 million for this year. Both the massive food production and Siyazondla programme will also benefit from the Umtata fresh produce market with the Kei Rail link providing an outlet for accessing external markets as well.

Departments have also been instructed to progressively utilise local products and services for meeting their development needs in line with a policy adopted by the Executive Council earlier this calendar year, which gives further impetus to local economic development.

An integrated nutrition programme championed by the Department of Health is set to reach, within the first year of the medium term, 90% of the deserving children especially those who have yet to attend school. Those attending school benefit from the primary school nutrition programme currently anchored by the department of education. "ILIMA" by Social Development, Agriculture, Education, Health and Economic Environmental Affairs and Tourism on fighting poverty will need to be improved.

Steps are being taken to address latent challenges of social security grants, such as dependency. These include the expanded public works programme, provision of access to basic services, increasing food security through the Massive Food Production programme, human resource development programme, building the economy of the province and accelerating public service transformation as a catalyst in social transformation.

Economic growth and development

Hosting of the 2010 World Soccer Cup provides a unique opportunity for accelerated delivery of integrated infrastructure, and also giving impetus to the implementation of the PGDP. The Executive Council resolved to establish a joint committee that will drive the provision of government assistance in preparation for the tournament, and to ensure that the whole of the EC benefits.

The provincial economy is characterized by massive disparities. The central and western parts of the province constituting the economic hub and the eastern regions are just the periphery although they have higher population concentration. The government is focusing on advancing the construction of the strategic economic infrastructure aimed at building anchor development corridors for turning around the provincial economy. Major projects targeted to make an impact include the Kei Rail link between Umtata and Buffalo City, a fast train between Nelson Mandela Metro and Johannesburg and other road and rail linkages that are meant to change the face of the provincial economy. We have invested over R1.2 billion in Coega to increase our stakes of securing R16 billion worth of anchor investment for the industrial development zone (IDZ). For the MTEF period R400 million will be invested in the EL IDZ.

Accompanying the integrated infrastructure development strategy is a focus of maximising the comparative advantage of each district municipality. The OR Tambo, Alfred Nzo and Ukhahlamba district municipal areas will serve as the agriculture hub of the province as they have such a great potential in this regard, as evidenced by tons of maize produced during the rollout of the massive food production programme. The districts also have a rich cultural heritage and potential for massive forestry development.

We will intensify cluster functioning and intergovernmental relations planning to ensure that all existing and contemplated development efforts such as a proposal to build a hydroelectric project in Umzimvubu to meet water and electricity needs of the eastern regions of the province. The Chris Hani District Municipality is to be developed into an agro-processing hub of the province while Cacadu's agricultural and tourism potential will also be enhanced.

Various strategies adopted by government to address economic imbalances include government interventions, with funding from the fiscus to create jobs. Examples include the Expanded Public Works Programme, improvement of social investment in the most deserving areas through building houses, clinics, health centres etc., mainstream small micro and medium enterprises through special assistance and provision of markets for their products utilizing government's consumption power and resources.

The government is committed to spend R1billion over the next five years to create 200 000 jobs, with 25 000 set to be achieved this financial year.

In implementing the Municipal Infrastructure Grant programme (MIG), the Vukuzakhe (Lengthmen) programme and other infrastructure development programmes such as building of schools, clinics, major roads, etc., labour intensive methods will be adopted.

Millions are expected to be generated from a mandatory R40.00 deduction from each payment of almost 60 000 beneficiaries of the Vukuzakhe programme. The programme is meant to fight poverty, build and maintain community infrastructure while also improving the asset and financial base of the poor creating opportunities for full participation in the economy.

Twenty-three thousand (23 000) housing units with basic services, 10% of which will be in rural areas, are to be completed during the current financial year. By the end of August 3 472 will be completed at a cost of R86 million.

The provincial government is preparing itself for kicking off the supply chain management procurement system in June 2004.

This will ensure that an Executive Council resolution on local procurement of goods and services succeeds. As outline in the budget speech, our target is to spend R10.2 billion of the projected R17 billion meant for procuring goods and services during the MTEF period.

The other area government is making progress in are the growing of cash crops such as Hemp, Cashmere and pineapple. The province is well endowed with many resources that remain to be fully tapped and greater focus will be given exploit opportunities for growth in these areas. Examples include Grahamstown mining, Eco-tourism, Umzimvubu water, and the Wild Coast SDI.

Improving governance and service delivery

Strengthening inter-governmental relations will be our focus this term, to ensure that the most critical layer of government in the delivery of services to the people has the muscle to do so. We have already launched the Premier's Coordinating Forum with the District Municipalities and the Nelson Mandela Metro Executive Mayors. Its function will be to ensure coordinated and integrated governance. There are major improvements registered over the past ten years, with many of our municipalities snatching national awards. However many more remain seriously challenged, especially regarding financial and human resources management. A programme of capacitating municipalities will be intensified in collaboration with the national Department of Provincial and Local Government. Discussions are also underway to align government planning and budgeting processes across the spheres of government.

The government is committed to complete the full cycle of turning around key service delivery provincial departments to ensure improvements as recommended by the Interim Management Team. We will expedite the establishment of corporate support services to strengthen the work of decentralized service delivery centres. A new institutional framework for strengthening the centre of provincial government is currently being discussed for purposes of tightening its capacity to facilitate, coordinate and monitor the implementation of the PGDP by all departments as well as the lower sphere of government.

The vision of government is the establishment of seamless one-stop service centres anchored by comprehensive information and communication technologies in each local municipality by the end of this decade. Before the end of August 2004, government will launch a provincial public service directory in appropriate languages and forms to empower ordinary people to know what services to access, where and how. The directory will also promote the accountability of the public service.

An integrated communications strategy has been crafted to improve the impact of government efforts to turn around the image of this province. This was crafted at a 'bosberaad' of provincial communicators that sharpened the coordination of communications in the province.

Government's anti-corruption programme continues to register impact as coordination of various agencies responsible for crime intelligence and law enforcement is tightened. We have established a secretariat in the Office of the Premier and a Provincial Anti-Corruption Council comprised of Heads of Departments, under the leadership of the Director General. Before August an inter-sectoral anti-corruption forum composed of government departments and various civil society structures will be launched. These new revamped institutions are a sequel to an evaluation of previous anti-corruption structures by the Public Service Commission, which recommended the streamlining of the structures.

Other areas to zoom into are the management of the bursaries and optimal use of skills development levy to channel people to areas of high-end skills required to support the implementation of the PGDP. Research conducted at the beginning of this year, confirmed our concerns of low skills base within the provincial administration. Part of the solutions is a transversal training programme covering generic skills and special financial management skills through Forth Hare Institute of Government. The adult basic education will be strengthened while curricula of Further Education and Training institutions is being reviewed in collaboration with the industry.

Significant improvements were made in addressing the challenge of staff additional to the establishment of the Eastern Cape Administration through among others the implementation of Resolution 7. The additional personnel were reduced from over 11 000 to over 4500 personnel. Our target for this year is to redeploy many of them to the Department of Education where more human resources are required in schools to address disparities in resource allocations. A social plan will also be instituted in collaboration with various departments.

As means to ensure that gender mainstreaming programme gains the momentum and sustainability they deserve, I have assembled a team to advise me on means of stepping up programmes aimed at empowering women in the province. The team will facilitate mobilization of resources, and promoting popular participation among women structures. The programme will focus also on people with disabilities, the elderly and children. Before the end of August 2004, a Women's Fund will be established. A R2 million is earmarked for the project. The fund will assist scores of women organisations working in areas of poverty reduction, employment creation, fighting HIV and AIDS, tourism, moral regeneration and manufacturing with financial support. Built into the allocation of funds will be the monitoring and evaluation. Proposals will be invited for organised women to access the funds. The team has both women and men, demonstrating a partnership structure aimed at not on just meeting subsistence needs but on wealth creation by women.

Perhaps worth highlighting in this house, Madam Speaker, is a five-year partnership we have with the European Union worth R250 million. The partnership is about the establishment and refurbishment of women and children victim support centres in various police stations around the province. Some of the funds will be used for training counselors from the community to assist in dealing with cases of abuse where there are gender challenges.

An integrated programme aimed at protecting and promoting the rights of the vulnerable groups such as women, the elderly, youth and people with disability is implemented at a various areas of the province.

Over the MTEF period R666 million will be expended in implementing an integrated anti HIV and AIDS and TB programme, with R160 million budgeted for the current financial year. The strategy of government is to comprehensively deal with the pandemic. Government interventions to assist with the treatment were launched earlier this month in all districts but Rietvlei of Umzimkhulu, where the programme will be launched in July.

Sanitation backlogs in the province are enormous. Within this financial year 64 768 households will have the bucket system converted into water borne sewer system in the following areas: Maclear, Mount Fletcher, Ugie, Cradock, Middleburg, Alicedale, Grahamstown, Lusikisiki, Flagstaff, Cala, Elliotdale, Kirkwood, Paterson, Mount Ayliff and Mount Frere.

The government's commitment to fighting crime and corruption will always be strengthened by continuously improving relations with people's organisations. We take our hats off for successes made in dealing with criminals through community policing forum.

We are just 18 days to the commemoration of the 28th anniversary of 16 June Soweto uprisings. Every institution needs to answer the question, 'are we doing enough for the mainstreaming of youth issues in programme planning and implementation?' Efforts to ensure a closer monitoring and evaluation of government departments' performance in integrating the youth development plan into their strategic plans will be improved this year.

The First 100 Days programme

As we have begun to roll out the implementation of the PGDP this calendar year, we are focusing on building a movement of all stakeholders and people of the province behind our development programme, in a true spirit of a people's contract for a better Eastern Cape, South Africa and a better world.

Following the overwhelming mandate given to us by all our people and their resultant expectations, we kicked off the third term of government with a series of consultative meetings with critical stakeholders in the governance of this province. These include the media, gender structures, basic service delivery agencies, faith-based organisations, business community, local municipalities, 12 down listeners and the traditional leadership of our province.

These meetings were phenomenally successful, with each sector asking not what the government can do for them, but what each can contribute in building our province to its rightful place among the other provinces and regions. These meetings have enriched our First 100 Days programme launched on 5 May 2004.

The first 100 days programme reaffirms our focus on results that have a direct impact on people's lives.

* by the end of May 2004 a total of 773 people would have been employed in the Kei Rail project with significant portion being women. An amount of R30million was allocated to a wholly women owned company working on the project. The project is due for completion in September 2004
* an anti-retroviral drugs roll out programme was launched in Grahamstown and drugs are accessible in Cecilia Makiwane, Frere, Dora Nginza, Settlers, Frontier, Umtata Hospital Complex, St Elizabeth, Empilisweni and Mlamli Hospitals. Rietvlei Hospital will access the drugs as from July 2004
* township roads will be tarred in Urban Renewal nodes viz. Motherwell (15 km), Mdantsane (40km) and Ngangelizwe (30km) which will be completed and launched
* eight hundred (800) low cost houses in Grahamstown townships (Tantyi, Joza, Hlalani and Vukani) have been hired to serve as Bed & Breakfast outlets for visitors attending the National Arts Festival. One hundred and twenty (120) homeowners were trained on hospitality as part of government's policy of economic redress
* vehicle testing and drivers' license centres will be launched in the Chris Hani District Municipal Area
* newly bought six cattle trucks will be patrolling roads of each district municipality to impound stray animals that are a menace to road users
* twenty-four teams of under 17 girls and boys will participate at the inaugural Chris Hani Memorial Football Tournament in Queenstown in July 2004. The tournament is meant to nurture and promote potential 2010 soccer stars
* a "Thetha norhulumente wakho" communication campaign will be launched leveraging the information and communication technologies by using the State of the Art multimedia centres in Bisho and in ten district offices around the province
* fourty-seven (47) schools will be fenced and 45 schools provided with toilets by June 2004. By the end of the First 100 days 21 new schools will be completed
* for promoting primary health care, six clinics will be completed, 20 new ambulances wheel chairs and hearing devices will be given to communities in Umtata, Mbizana, Queenstown, Port Elizabeth and the eastern region of the province
* the Nelson Mandela Academic Hospital will be launched within the period.

Madam Speaker, this is a roadmap we have undertaken to follow with great passion and dedication. We are a province at work. We have set the targets and are announcing them as a declaration of our commitment to accelerated service delivery to ensure a better life for all. Join the winning Eastern Cape team.

I thank you.

Issued by: Office of the Premier, Eastern Cape Provincial Government
28 May 2004
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