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Date : 28/06/2004
Source: Ministry of Provincial and Local Government
Title: N Hangana: Provincial and Local Government Dept Budget Vote debate, NCOP


DEPUTY MINISTER HANGANA'S SPEECH TO THE NATIONAL COUNCIL OF PROVINCES (NCOP) ON THE OCCASION OF THE BUDGET VOTE DEBATE OF THE DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT, 28 June 2004

Honourable Chairperson
Esteemed Members
Ladies and Gentlemen

Decades of apartheid colonial rule penetrated the most basic and elementary aspects of our lives and sought as its primary objective to socially and morally oppress and divide the majority in our nation. Both social status and human dignity were judged in terms of white and black.

The apartheid regime's policies of exclusion separated us from each other and defined the majority as second class residents, fit only to serve and provide labour to a small racial minority. These same exclusionary policies separated us into racially distinct places of residence, worship, school and leisure. Our cultural, religious and linguistic differences were used against us to reinforce this exclusionary logic.

In 1994 this country embarked on a new journey of reconstructing and re-weaving the rich social and human fabric and tapestry of our broken society. The majority of our people voted for a new society based on values such as non-racialism, non-sexism, equality and human dignity in a single united South Africa. In 1994 this newly elected democratic government started the process of building one inclusive South African nation.

Our commitment to nation-building was captured in the supreme law of the land in 1996, whose founding provisions clearly outlined a new value base. This was further enshrined in the Bill of Rights that affirmed the democratic values of human dignity, equality and freedom.

Freedom of expression and the recognition of 11 official languages became two of the many the defining features that separated us from the previous apartheid regime. We went further in our Constitution to define the role of the state as being that of respecting, protecting, promoting and fulfilling the rights outlined. This was further complemented by making provision for the establishment of various independent state institutions whose role it was to strengthen our Constitutional democracy.

On matters specifically pertaining to nation-building and social cohesion, we provided for the establishment of the Human Rights Commission, the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities and the Commission on Gender Equality.

Honourable Chairperson

The nine provinces are an indivisible part of the Republic of South Africa. Provinces have an indispensable role and responsibility in contributing to matters of nation-building and social cohesion, as outlined in the Constitution. Provinces have legislative and executive powers within the concurrent functions in Schedule 4 and the exclusive functions in Schedule 5 of the Constitution.

What this means in practice is that provinces mainly administer social services functions, that is, education, social grants, and health. An analysis of expenditure trends since 1994 shows that the provincial sphere continues to play a valuable role in addressing some of the material conditions that give rise to social fragmentation and moral decline in our communities.

Firstly, more than fifty percent of the national annual budget is allocated to provinces, and of this amount more than eighty percent is allocated between three sectors: health, education and social grants.

Secondly, if we look at provincial expenditure for the fourth quarter of 2003/4 then we can see that from a budget of R171, 1 billion, provinces spent R170, 1 billion. Capital spending in the nine provinces was R17,4 billion of the total adjusted budget of R19,2 billion. The highest share of capital spending was in public works, roads and transport departments.

Education expenditure for the fourth quarter totalled R59, 8 billion (35,1 % of total provincial expenditure), social development R42, 2 billion (24,8%) and health R37, 1 billion (21, 8%). Overall social services spend (education, health and social development) was 81,7% of total provincial spending.

This brief analysis demonstrates the important role that provinces are playing in contributing to the social and human capital well-being of our people. Inadequate schools and education infrastructure, poor social amenities, a lack of basic health care facilities, and the absence of social grants to the most vulnerable all undermine the basis for national pride and social cohesion.

Esteemed Members

This role of provinces must be located in our system of intergovernmental fiscal relations. The Constitution gives provinces very limited own-revenue raising powers. It is for this reason that provinces rely mainly on national transfers. In 2002/3, over 96% of provincial revenue was derived from national transfers. Provincial own revenue it thus just under 4% of their own budgets.

Expenditure analysis trends within the provincial sphere, undertaken by the National Treasury over recent years, speak to a number of positive trends. Key amongst these has been the ability of provinces to improve expenditure management. This has resulted in strong real spending of 7.5% in provincial budgets in 2003/4. This will allow provinces to expand and consolidate existing programmes in key areas of social development in 2004 and beyond.

As a country we have been proud to be able to demonstrate the expansion of our social safety net and social grant programmes to the most vulnerable in country since 1994. Expenditure on social grants, with the direct aid of provinces, since 1994 to 2003 has increased from R10 billion to R34.8 billion. The historical reasons for this expenditure pattern are well known to us. However, as we move into the next decade we will need to find innovative ways of adopting a more sustainable allocative spending pattern. This speaks to addressing the fundamental duality in our economy and the role that provinces will need to pay in this regard. We will return to this matter on a later occasion.

Honourable Chairperson

In 2003, this House supported the enactment of National Framework legislation on the Institution of Traditional Leadership. Since the birth of our new democracy in 1994, this piece of legislation is probably the single most important law to affirm the relevance of the institution of traditional leadership in the reconstruction and development of this country.

In the Preamble to this legislation we re-committed ourselves to the following democratic values. These included:

* Democratic governance and the values of an open society; and
* Gender equality within the institution of traditional leadership.

We also recognised the critical role of the institution of traditional leadership in promoting nation-building and harmony between people.

We affirmed the role of this institution in our system of governance across all three spheres of government and entrenched a number of provisions that seek to give greater clarity in this regard. We made provision for the establishment of local Houses of Traditional Leadership, traditional councils and also a National Commission on Claims and Disputes.

We are well aware that this institution performed a crucial role in the promotion of ubuntu and communal values in our rural communities. This role was brutally eroded and distorted through many years of colonial and apartheid rule. As we enter the second decade of freedom in this country we will expect of this institution of traditional leadership to support government in giving full effect to the democratic values of non-racialism, non-sexism, equality and human dignity of our Constitution and as well as the spirit and provisions outlined in the national framework legislation.

National and provincial government will continue to support the institution in their role as the custodians of culture and tradition in their communities. We will also work with this institution as they partner with local government to facilitate delivery and implementation of priority programmes, fight poverty, unemployment, marginalisation and HIV and AIDS. Traditional leaders will have an important role in the campaign for moral regeneration and will need to place special emphasis on matters such as social crime, child and women abuse.

The Department of Provincial and Local Government will work closely with provinces to ensure that they provide appropriate support to this institution of traditional leadership, especially as they prepare and finalise provincial-specific legislation on this institution by early 2005.

In May 2004, the President outlined the key priorities for the country in 2004 and beyond. We will expect the institution of traditional leadership, as they are constituted across all levels of government and in our local communities, to clearly define their support role in facilitating the implementation of these commitments. Key programmes that will require their active participation will include the Integrated Sustainable Rural Development Programme, the Expanded Public Works Programme, the Municipal Infrastructure Grant and various social development programmes and social grant campaigns.

Esteemed Members

In 2003 we enacted legislation that made it possible to establish the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities. This Commission will also play unique role in strengthening the social fabric of our society.

Under the apartheid regime our wealthy reservoir of culture, religion and language was used as instruments of division, segmentation and discrimination. The fragmentation of our society was based on racist and colonialist notions of social status and class.

Today, with the establishment and support of this Commission we aim to do exactly the opposite. Our rich diversity in culture, religion and language must be used to build a single, united and socially transformed South African nation.

The mission of the Commission is to promote and develop peace, friendship, humanity, tolerance and national unity among cultural, religious and linguistic communities. Since 1994, all communities are free under the law to enjoy their culture, practise their religion and use the language of their choice.

We are pleased to report satisfactory progress in the work of the Commission since its announcement by the President in September 2003. Eighteen commissioners were appointed by the President with Dr Mongezi Guma as Chairperson and Mrs Marlene Bethlehem as Deputy Chairperson. The Commission was formally inaugurated by Judge President B Ngoepe on 2 December 2003 in Pretoria.

This Commission has already convened its first strategic planning session and has identified critical work areas or thrusts on which it will concentrate. These include:

* Public education and information;
* Undertaking investigation and assisting with dispute resolution;
* Undertaking policy research;
* Facilitating the establishing of Community Councils; and
* Convening its first National Consultative Conference by December 2004.

Honourable Speaker

We will regularly keep this House informed of the valuable work that will be undertaken by this Commission. The Ministry and Department will provide ongoing and appropriate support to the work of the Commission.

The task of nation-building and mending the social fabric of our society will require active intervention and support from the state and its various associated institutions of governance. Today we have outlined the very important roles and functions that will need to be undertaken by our provinces, the institution of traditional leadership and the newly established Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities.

I thank you.

Issued by: Ministry of Provincial and Local Government
28 June 2004

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