Date: 28/06/2004
Source: Gauteng Provincial Government
Title: I Jacobs: Gauteng Public Transport, Roads & Works Prov Budget Vote 2004/2005
ADDRESS BY MEC IGNATIUS JACOBS ON THE TABLING OF THE DEPARTMENT OF PUBLIC TRANSPORT, ROADS AND WORKS BUDGET VOTE IN THE GAUTENG LEGISLATURE, 28 June 2004
INTRODUCTION:
Honourable Speaker,
Comrade Premier,
Chairperson of the Portfolio Committee,
Honourable Members,
Honoured Guests,
Representatives from the Business Community,
Trade unions and a number of very important partners of the department Officials and in particular, the Acting Head of Department, Mr. Jason Sishuba,
It gives me great pleasure to present to you the budget of the Department of Public Transport, Roads & Works for the financial year 2004/5.
I would like to take this opportunity to congratulate all my colleagues appointed in the Executive Council as well as my comrades in the Legislature that have been elected by the people to represent them. My congratulations also go to the other side and particular to the new comers.
Honourable Speaker, the budget of this Department will clearly highlight the commitments made in the Manifesto of the African National Congress, which clearly enters into a contract with the masses of our people, across the diversity of our people to "CREATE WORK AND FIGHT POVERTY"
This budget is all about that; it will clearly demonstrate how this Government will give effect to this fundamental commitment of the ruling party. It is important and imperative that all spheres of Government pull their resources together to free our people from hunger, poverty, crime and create work for them, in order for us to deepen our democracy, and as a developmental state continue to grow the economy and create work, in order to deal effectively with the social, economic and developmental goals of South Africa.
The developmental state is also informed by a clear agenda; that of building a political system that is about partnership and a system that enhances consensus, as opposed to an adversarial political system.
Colleagues and friends, the work has started, there is no time to be wasted, we need to roll-up our sleeves and get down working. Factors that count in our favour are that:
* Gauteng has less than 2% of the Country's surface area;
* Is home to 70% of the country's workforce;
* Gauteng accounts for some 40% of GDP of South Africa;
* Generates 9% of GDP of Africa;
* Gauteng has the most developed infrastructure in Africa;
* Is the most technologically advanced Province;
* Have 8, 9 million people;
* Is home to about 340 vehicles/km;
* Gauteng now has 1.8 million drivers and 2.8 million registered vehicles.
THE PROCESS OF TURNING THE TIDE:
During the first decade of freedom we have:
* Improved the Institutional capacity in Government;
* Improved the capacity and funding in certain areas, but we need to look into particular areas where more funding is required, complemented with ongoing capacity, and radical thinking;
* Improved the implementation of programmes and projects dramatically;
* The revenue and fiscus base has improved;
* Developed new policies and the process of policy development has been enhanced, in order to improve delivery;
* To acknowledge that we have to strengthen research capacity in policy formulation and policy choices;
BEGINNING THE SECOND DECADE OF FREEDOM WITH CONFIDENCE:
As a result of the successes of the First Decade of Freedom, Government is placed in an even better position of success in tackling the political, social, economic and developmental challenges mentioned below:
* To halve unemployment through ensuring high levels of labour absorbing programmes and projects, ensure that economic growth contributes to reduce inequality and leads to the development of our Province, nation and continent;
* To halve poverty levels through growing secure and prosperous communities with jobs, schools, clinics and other services, ensure safe communities and create a healthy environment, which supports families, social, cultural and volunteer activities;
We are committed to building a Province wherein:
* The people are healthy, skilled and productive;
* The Government is caring and responsive to the needs of the citizens;
* Citizenship and Democracy is deepened through massive volunteer programmes;
So as we move to design an implementable strategy for our people, we need to ensure that the following five year strategic Provincial priorities form the crux of our approach:
* Enabling faster economic growth and job creation;
* Fighting poverty and building safe, secure and sustainable communities;
* Developing healthy, skilled and productive people;
* Deepening democracy and nation building and realising the constitutional rights of our people;
* Building an effective and caring government.
OUR RESPONSE:
Three pillars inform the Department's strategy to grow the economy, create jobs, and to fight poverty. These are:
* Safe, affordable and efficient public transport and transportation plans;
* Integrated infrastructure programme;
* Expanded public works programme;
A safe, affordable and efficient public transport and transportation system:
The challenge we are facing is to deal effectively with our people who were forced to live in areas that are inaccessible and remote from the economically active areas. These areas were neglected in terms of transport infrastructure or service. Many people in our province thus travel very long distances to work, for leisure, or any business activity. The closer people are to places of economic activity, the better they are in a position to access sources, which ensures a better life for all. By maximising the ability of people to access business opportunities and the labour market, transport becomes an instrument for alleviating poverty. This is a step closer to the sharing of wealth, as envisaged by the Freedom Charter, which advocates the promotion of mobility and access.
The department is thus going to strengthen the critical work of consolidating the Strategic Public Transport Network System. Close to this is the practical realisation of the Gauteng Spatial Development Framework through the Integrated Spatial and Transport Frameworks. This will form part of the identification of corridors to promote public transport oriented development, easy access, attract investments, and integrated planning for appropriate land use.
Following the victory of the national democratic revolution in 1994 we have seen a new economic order, bringing its own challenges. Urban areas, especially in Gauteng, have grown rapidly in the last ten years. There has been a boom of the black middle class, even our white patriots have never had it so good, resulting in many having motorcars. Motorisation levels have thus increased beyond expectations. Gauteng is also home to the biggest freight logistics and management operation on the African continent, in the air, on the road and rail. Working together with the national department of transport, we will develop a comprehensive response to grow this sector of the economy, and to deal with the changing nature of doing business, underpinned by the JIT (just in time) principle. Public transport and transport infrastructure has not kept pace with the economic boom and a growing population in Gauteng. In dealing with these problems, we will work with the metro-, district- and local municipalities to develop Integrated Transport Plans, in terms of the National Land Transition Transportation Act (NLTTA). Within these plans, we will also confront the problem of congestion head on. We are at present looking at various proposals with regard to congestion management.
Our province must begin to develop frameworks that show clearly our support for the growth of public transport use and a new and dynamic road network. Through its growth, the use of public transport reduces social exclusion, and it promotes diversity among people. We will continue to look at all proposals for encouraging public transport use. For too long we have faced problems in the public transport sector. Our bus companies have been undergoing changes, and there are moves to speed up the transformation of the sector.
The taxi industry is still struggling with the right formula in order to be organised on sound business principles. We have to work for the recognition of the sector as a business sector, and encourage the organisation of taxis as a transport industry, and help grow the owners as business people. It is in this light that we are looking for better ways of handling the issue of subsidies for public transportation. We have already started with consultations with all stakeholders in this sector, including taxi drivers and commuter organisations. We will also work closely with the Minister of Transport, Jeff Radebe, in the review and further development of the recapitalisation project.
Crucial in all the above areas is the building of Intelligent Transportation and Transport Systems, a knowledge and data bank that will give us the edge. We must develop our systems to assist us to solve these problems faster.
With increases in motorisation, density in population, including poor communications and education, we need to rethink our strategies for law enforcement. The socio-economic impact of accidents due to transportation activities affects all kinds of people and deteriorates dramatically as motorisation increases. The cost of accidents includes the obvious damage to society and the destructive impact on other activities such as tourism, urban development, modal choices to travel, etc. Poor standards of design lack of enforcement and prosecution, defective driver and pedestrian education all contribute to the high incidences of transport accidents.
For this reason, the Provincial Government resolved to transfer Traffic Safety to where it will be performed better, Community Safety. I have confidence that the MEC for Community Safety, Firoz Cachalia, will use this structure effectively.
We will also invest record amounts in a new road network system, maintenance for our roads, and the public transport subsidy scheme, to the tune of approximately R2, 6 billion over the next three years. Working together with national and local government, we must deal urgently with new rail stock investment in Gauteng and efficiency in using rail as it is commuting a large part of the Gauteng workforce.
Integrated infrastructure programme:
The problems of population growth, coupled with uncoordinated funding strategies for infrastructure, led to a gradual decay of existing infrastructure, and serious shortages in facilities for economic growth. We must begin to work with all departments and local government in developing an integrated infrastructure programme. We will develop and assist in the implementation of infrastructure planning at provincial and local level, urban and rural development, and encourage productive investment. As Gauteng government we will invest record amounts on infrastructure in the next three years to the tune of approximately R3 billion.
We must begin to think seriously about the impact of public-private partnerships in infrastructure provisioning. We must strengthen the design and terms of public-private partnerships, public-community partnerships and construction contracts, taking into account relevant legislation, and policy frameworks. This will mean we must develop a clear infrastructure investment plan, which will promote our work with state-owned enterprises, development institutions and banks to facilitate growth, improve productivity, create jobs and promote urban and rural development.
To this end, we will work with the Department of Finance and Economic Affairs to explore different funding models for infrastructure programmes. We will also develop the capacity of departmental managers, to promote effective and accountable management in the maintenance of assets, infrastructure and goods. Best practice models have been piloted in this regard. The Asset Procurement and Operating Partnership System (APOPS) is a shining example. We will also beef up our resource management systems for improved maintenance of property, using the Computerised Maintenance Management System already in use by the Department of Public Works, and establish a Provincial Government Asset Register, taking into consideration asset management plans being developed by the Department of Public Works.
Job Creation and Poverty Alleviation:
The success of programmes for job creation and poverty alleviation has not been measured by statistical figures. Our people recognised the attempts that had been made by the ANC Government; they have endorsed these attempts, but stressed that more needed to be done. The Community Based Public Works Programme was hailed as a flagship programme in the rural areas. During the 2002/3 financial year, the Premier initiated the Zivuseni Poverty Alleviation Programme, to improve the physical condition of public facilities in the poorest of poor areas. This opened short-term job opportunities and addressed poverty alleviation, especially among women and youth. Simultaneously, a number of people received accredited life skills and technical training.
We have studied these novel projects, and came to the conclusion that there is a need to review some of the projects, in terms of project size, scope, and impact. Various organisations that were involved in the Growth and Development Summit have committed themselves to make inputs for the success of the Expanded Public Works Programme. The Growth and Development Summit last year brought together Government, trade unions, business and civil society. A major resolution was made, to establish an Expanded Public Works Programme, to utilise public sector budgets to alleviate poverty and rapidly reduce unemployment. We will rely on the good nature of private enterprise to contribute to the success of the implementation of that resolution.
The EPWP belongs to and is mainstreamed on the budgets of all departments. Our department will only be coordinating and specifying the methodology of expenditure. We intend establishing a special directorate to support capacity building, innovation, and the management of the programme. Through this programme we will nurture the enthusiasm of our people to be integrated into the economic advances of the world.
It is through such endeavours that we will enhance learnerships and youth training in all our projects. We believe that all of us have an important role to play in the economic advancement of our youth. True to our commitment to deal effectively with poverty, we will invest record amounts in the EPWP, in the next three years to the tune of R3, 3 billion.
CROSS-CUTTING ISSUES:
Broad Based Black Economic Empowerment (BBBEE):
It is imperative that The BBBEE Act is implemented as a matter of extreme urgency. This will lead to the rapid advancement of empowering black business people; the Act provides reasons for this as follows:
* To promote the achievement of the constitutional right to equality, increase broad-based and effective participation of black people in the economy and promote higher growth rate, increased employment and more equitable income distribution
* To establish a national policy and broad-based black economic empowerment so as to promote the economic unity of the nation, protect the common market, and promote equal opportunity and equal access to government services
The department has actively promoted Black Economic Empowerment. Excellent work has been done in programmes like the Emerging Contractor Development Programme, Women in Construction, and others like them, these projects will have to continue. In order for the department to conclude that it has done more in this direction, we must strengthen a number of areas. The Construction Industry Development Programme will have to focus on transformation in the industry. With the amount of construction that occurs in our province, we will have to look into the possibility of having a provincial Construction Industry Development Board. The Emerging Contractor Development Programme will have targets for each year, and these must be visible in procurement. An Incubator Strategy for the emerging contractors in particular women and youth enterprise, will have to be aligned to the BBBEE Act. Procurement reform will have to give preferential and favourable terms to Affirmable Business Enterprises, with the contract participation goal for Black Empowerment fixed at 40% in the Repair and Maintenance programme, as well as all Affirmable Professional Service programmes, etc. Through growing and supporting small and medium enterprise, we will not only promote economic growth, but also create jobs.
Honourable Speaker, the above strategic imperatives will obviously need us to reshape our plans and identify areas that are crucial for the success of this strategy. The following matters need our urgent attention.
Strengthen co-operative governance and partnerships:
The three tiers of Government have acquired vast experience and lessons over the last ten years, but the system of cooperative governance is still evolving. First, we must strengthen ties with the national departments. We are in an advantageous position of dealing directly with two national departments. We are able to integrate a big amount of work on our own. We will be able to contribute to policy development, and in the development of crucial strategies for our country and Province, if we maintain strong ties with those departments.
It is important for the Provincial Department to develop a common strategic approach with local government, and civil society around the priorities identified above, in order to ensure that we meet our social, economic and developmental goals as set out in the GPG ten year strategic framework. The development of a common strategic vision is key to ensuring that provincial and local governments act in unison in the pursuit of common goals.
With this view in mind, we will strengthen and expand the terms of reference of the Gauteng Provincial Consultative Forum and the Transport Coordinating Committee, within the framework of legislation, together with the department of Local Government and Land Affairs.
Our relations with communities currently are limited to consultation and participation in structures, not real community-partnerships for development action. We will establish a directorate for stakeholder management. This will strengthen our ties with all stakeholders, including communities. In this light, we will also strengthen our partnerships with business. We are aiming to improve on our corporatist relations with business.
Departmental Systems Improvement and Management Development:
All we have said so far demands innovative, creative management with strategic leadership skills. We will have to respond to this demand. We have already started working on the departmental systems that will assist us to do what we are doing better. We are already developing a performance management system that includes a balanced score card and a quality assurance system.
We will also strengthen our financial management systems in terms of human resource development to increase their abilities in expenditure and risk management, reporting, debtors and creditors management.
BUDGET OVERVIEW:
The total budget of the dept for this financial year is R1, 380,396,000 billion. This excludes traffic management, which has now moved to Community Safety. The budget is broken up into five programmes and the allocations are indicated in table 1.
TABLE 1:
Programme2004/5
1.Administration: 106,279,000
2.Public Works: 552,300,000
3.Road Infrastructure: 614,817,000
4.Transport: 57,700,000
5.Community Based Programme: 49,300,000
The above figures indicates that 44% of the budget is spent on Public Works and Community Based Programmes, 44% is spent on Road Infrastructure, whilst only 8% is spent on Administration, the other 4% is spent on Transport.
Table 2 presents the focus areas and the amounts that will be spent in each focus area.
TABLE 2:
Focus Areas 2004/5
Corporate Support: 87,300,000
Transport Planning and Research: 40,000,000
Public Transp Empowerment: 38,600,000
Road Network Constr & Maint: 510,817,000
Infrastructure Programmes: 49,300,000
EPWP: 215,000,000
CONCLUSION:
Honourable Speaker, as we move towards the implementation of these crucial programmes in order for our people to have jobs and be taken out of the poverty cycle, we need to realise that as South Africans, we need to tackle these problems as a collective, the Public as well as the Private sector, Black as well as White. We also need to be aware of the challenges brought to us through Globalisation. International organisations and governments are having more confidence in South Africa. There is also more confidence from international investors. The 2010 World Cup also brings its own challenges but we need to inform the world that we are ready to host the biggest and best World Cup ever.
During this term we need to, transform the elements of confidence into tangible products for our people, confirm investor confidence by implementing sound economic policies and raise morale of our people through increased socio-economic support. During this financial year I will ensure the following:
Development of a Framework on Freight Logistics in Gauteng, by September 2004; Review policy in order to improve on the delivery of public transport, by September of 2004; Review of the public transport subsidy system towards establishing an efficient, widespread and affordable public transport system that covers rail, taxis and buses, by October 2004; Develop a transport infrastructure investment framework, to fuse with the revised trade and industrial strategy, by November 2004; The finalisation and careful rollout of taxi recapitalisation by September 2004; To develop a Provincial Framework on EPWP to include aspects of transport infrastructure by July 2004. Make a review of Gauteng Labour Intensive Programme (GLIP) by October 2004; To develop a Provincial Corridor Strategy by October 2004; To develop and assist in the implementation of infrastructure planning at provincial and local level, urban and rural development, and productive investment by August 2004; To develop an Infrastructure Development Strategy by November 2004; To review strategy on work teams in Community Based Public Works Projects by July 2004. Present report on link to PPPs, This will be presented as part of the Framework on EPWP, by September 2004; Develop a Provincial Infrastructure Strategy, by November 2004; Commission Transport Economists to work on funding models to be included as part of the Transport Infrastructure Development Strategy, by November 2004; Develop an integrated Expanded Public Works Programme with all relevant departments and local government, by September 2004. In addition to this the GPG will create 100 000 jobs on an annual basis.
Honourable Speaker, Honourable Premier, Comrades and honoured guests, these commitments will ensure that Gauteng will become the preferred place to live in for all its citizens, where each resident receives the highest quality of life. Residents of Gauteng will also utilise public transport to work and to play.
Thank you.
For more information contact: Lebelo Maloka
Tel: (011) 355 7553
Cell: 083 310 2057
Issued by: Department of Public Transport, Roads and Works, Gauteng Provincial Government
28 June 2004
Source: Gauteng Provincial Government
Title: I Jacobs: Gauteng Public Transport, Roads & Works Prov Budget Vote 2004/2005
ADDRESS BY MEC IGNATIUS JACOBS ON THE TABLING OF THE DEPARTMENT OF PUBLIC TRANSPORT, ROADS AND WORKS BUDGET VOTE IN THE GAUTENG LEGISLATURE, 28 June 2004
INTRODUCTION:
Honourable Speaker,
Comrade Premier,
Chairperson of the Portfolio Committee,
Honourable Members,
Honoured Guests,
Representatives from the Business Community,
Trade unions and a number of very important partners of the department Officials and in particular, the Acting Head of Department, Mr. Jason Sishuba,
It gives me great pleasure to present to you the budget of the Department of Public Transport, Roads & Works for the financial year 2004/5.
I would like to take this opportunity to congratulate all my colleagues appointed in the Executive Council as well as my comrades in the Legislature that have been elected by the people to represent them. My congratulations also go to the other side and particular to the new comers.
Honourable Speaker, the budget of this Department will clearly highlight the commitments made in the Manifesto of the African National Congress, which clearly enters into a contract with the masses of our people, across the diversity of our people to "CREATE WORK AND FIGHT POVERTY"
This budget is all about that; it will clearly demonstrate how this Government will give effect to this fundamental commitment of the ruling party. It is important and imperative that all spheres of Government pull their resources together to free our people from hunger, poverty, crime and create work for them, in order for us to deepen our democracy, and as a developmental state continue to grow the economy and create work, in order to deal effectively with the social, economic and developmental goals of South Africa.
The developmental state is also informed by a clear agenda; that of building a political system that is about partnership and a system that enhances consensus, as opposed to an adversarial political system.
Colleagues and friends, the work has started, there is no time to be wasted, we need to roll-up our sleeves and get down working. Factors that count in our favour are that:
* Gauteng has less than 2% of the Country's surface area;
* Is home to 70% of the country's workforce;
* Gauteng accounts for some 40% of GDP of South Africa;
* Generates 9% of GDP of Africa;
* Gauteng has the most developed infrastructure in Africa;
* Is the most technologically advanced Province;
* Have 8, 9 million people;
* Is home to about 340 vehicles/km;
* Gauteng now has 1.8 million drivers and 2.8 million registered vehicles.
THE PROCESS OF TURNING THE TIDE:
During the first decade of freedom we have:
* Improved the Institutional capacity in Government;
* Improved the capacity and funding in certain areas, but we need to look into particular areas where more funding is required, complemented with ongoing capacity, and radical thinking;
* Improved the implementation of programmes and projects dramatically;
* The revenue and fiscus base has improved;
* Developed new policies and the process of policy development has been enhanced, in order to improve delivery;
* To acknowledge that we have to strengthen research capacity in policy formulation and policy choices;
BEGINNING THE SECOND DECADE OF FREEDOM WITH CONFIDENCE:
As a result of the successes of the First Decade of Freedom, Government is placed in an even better position of success in tackling the political, social, economic and developmental challenges mentioned below:
* To halve unemployment through ensuring high levels of labour absorbing programmes and projects, ensure that economic growth contributes to reduce inequality and leads to the development of our Province, nation and continent;
* To halve poverty levels through growing secure and prosperous communities with jobs, schools, clinics and other services, ensure safe communities and create a healthy environment, which supports families, social, cultural and volunteer activities;
We are committed to building a Province wherein:
* The people are healthy, skilled and productive;
* The Government is caring and responsive to the needs of the citizens;
* Citizenship and Democracy is deepened through massive volunteer programmes;
So as we move to design an implementable strategy for our people, we need to ensure that the following five year strategic Provincial priorities form the crux of our approach:
* Enabling faster economic growth and job creation;
* Fighting poverty and building safe, secure and sustainable communities;
* Developing healthy, skilled and productive people;
* Deepening democracy and nation building and realising the constitutional rights of our people;
* Building an effective and caring government.
OUR RESPONSE:
Three pillars inform the Department's strategy to grow the economy, create jobs, and to fight poverty. These are:
* Safe, affordable and efficient public transport and transportation plans;
* Integrated infrastructure programme;
* Expanded public works programme;
A safe, affordable and efficient public transport and transportation system:
The challenge we are facing is to deal effectively with our people who were forced to live in areas that are inaccessible and remote from the economically active areas. These areas were neglected in terms of transport infrastructure or service. Many people in our province thus travel very long distances to work, for leisure, or any business activity. The closer people are to places of economic activity, the better they are in a position to access sources, which ensures a better life for all. By maximising the ability of people to access business opportunities and the labour market, transport becomes an instrument for alleviating poverty. This is a step closer to the sharing of wealth, as envisaged by the Freedom Charter, which advocates the promotion of mobility and access.
The department is thus going to strengthen the critical work of consolidating the Strategic Public Transport Network System. Close to this is the practical realisation of the Gauteng Spatial Development Framework through the Integrated Spatial and Transport Frameworks. This will form part of the identification of corridors to promote public transport oriented development, easy access, attract investments, and integrated planning for appropriate land use.
Following the victory of the national democratic revolution in 1994 we have seen a new economic order, bringing its own challenges. Urban areas, especially in Gauteng, have grown rapidly in the last ten years. There has been a boom of the black middle class, even our white patriots have never had it so good, resulting in many having motorcars. Motorisation levels have thus increased beyond expectations. Gauteng is also home to the biggest freight logistics and management operation on the African continent, in the air, on the road and rail. Working together with the national department of transport, we will develop a comprehensive response to grow this sector of the economy, and to deal with the changing nature of doing business, underpinned by the JIT (just in time) principle. Public transport and transport infrastructure has not kept pace with the economic boom and a growing population in Gauteng. In dealing with these problems, we will work with the metro-, district- and local municipalities to develop Integrated Transport Plans, in terms of the National Land Transition Transportation Act (NLTTA). Within these plans, we will also confront the problem of congestion head on. We are at present looking at various proposals with regard to congestion management.
Our province must begin to develop frameworks that show clearly our support for the growth of public transport use and a new and dynamic road network. Through its growth, the use of public transport reduces social exclusion, and it promotes diversity among people. We will continue to look at all proposals for encouraging public transport use. For too long we have faced problems in the public transport sector. Our bus companies have been undergoing changes, and there are moves to speed up the transformation of the sector.
The taxi industry is still struggling with the right formula in order to be organised on sound business principles. We have to work for the recognition of the sector as a business sector, and encourage the organisation of taxis as a transport industry, and help grow the owners as business people. It is in this light that we are looking for better ways of handling the issue of subsidies for public transportation. We have already started with consultations with all stakeholders in this sector, including taxi drivers and commuter organisations. We will also work closely with the Minister of Transport, Jeff Radebe, in the review and further development of the recapitalisation project.
Crucial in all the above areas is the building of Intelligent Transportation and Transport Systems, a knowledge and data bank that will give us the edge. We must develop our systems to assist us to solve these problems faster.
With increases in motorisation, density in population, including poor communications and education, we need to rethink our strategies for law enforcement. The socio-economic impact of accidents due to transportation activities affects all kinds of people and deteriorates dramatically as motorisation increases. The cost of accidents includes the obvious damage to society and the destructive impact on other activities such as tourism, urban development, modal choices to travel, etc. Poor standards of design lack of enforcement and prosecution, defective driver and pedestrian education all contribute to the high incidences of transport accidents.
For this reason, the Provincial Government resolved to transfer Traffic Safety to where it will be performed better, Community Safety. I have confidence that the MEC for Community Safety, Firoz Cachalia, will use this structure effectively.
We will also invest record amounts in a new road network system, maintenance for our roads, and the public transport subsidy scheme, to the tune of approximately R2, 6 billion over the next three years. Working together with national and local government, we must deal urgently with new rail stock investment in Gauteng and efficiency in using rail as it is commuting a large part of the Gauteng workforce.
Integrated infrastructure programme:
The problems of population growth, coupled with uncoordinated funding strategies for infrastructure, led to a gradual decay of existing infrastructure, and serious shortages in facilities for economic growth. We must begin to work with all departments and local government in developing an integrated infrastructure programme. We will develop and assist in the implementation of infrastructure planning at provincial and local level, urban and rural development, and encourage productive investment. As Gauteng government we will invest record amounts on infrastructure in the next three years to the tune of approximately R3 billion.
We must begin to think seriously about the impact of public-private partnerships in infrastructure provisioning. We must strengthen the design and terms of public-private partnerships, public-community partnerships and construction contracts, taking into account relevant legislation, and policy frameworks. This will mean we must develop a clear infrastructure investment plan, which will promote our work with state-owned enterprises, development institutions and banks to facilitate growth, improve productivity, create jobs and promote urban and rural development.
To this end, we will work with the Department of Finance and Economic Affairs to explore different funding models for infrastructure programmes. We will also develop the capacity of departmental managers, to promote effective and accountable management in the maintenance of assets, infrastructure and goods. Best practice models have been piloted in this regard. The Asset Procurement and Operating Partnership System (APOPS) is a shining example. We will also beef up our resource management systems for improved maintenance of property, using the Computerised Maintenance Management System already in use by the Department of Public Works, and establish a Provincial Government Asset Register, taking into consideration asset management plans being developed by the Department of Public Works.
Job Creation and Poverty Alleviation:
The success of programmes for job creation and poverty alleviation has not been measured by statistical figures. Our people recognised the attempts that had been made by the ANC Government; they have endorsed these attempts, but stressed that more needed to be done. The Community Based Public Works Programme was hailed as a flagship programme in the rural areas. During the 2002/3 financial year, the Premier initiated the Zivuseni Poverty Alleviation Programme, to improve the physical condition of public facilities in the poorest of poor areas. This opened short-term job opportunities and addressed poverty alleviation, especially among women and youth. Simultaneously, a number of people received accredited life skills and technical training.
We have studied these novel projects, and came to the conclusion that there is a need to review some of the projects, in terms of project size, scope, and impact. Various organisations that were involved in the Growth and Development Summit have committed themselves to make inputs for the success of the Expanded Public Works Programme. The Growth and Development Summit last year brought together Government, trade unions, business and civil society. A major resolution was made, to establish an Expanded Public Works Programme, to utilise public sector budgets to alleviate poverty and rapidly reduce unemployment. We will rely on the good nature of private enterprise to contribute to the success of the implementation of that resolution.
The EPWP belongs to and is mainstreamed on the budgets of all departments. Our department will only be coordinating and specifying the methodology of expenditure. We intend establishing a special directorate to support capacity building, innovation, and the management of the programme. Through this programme we will nurture the enthusiasm of our people to be integrated into the economic advances of the world.
It is through such endeavours that we will enhance learnerships and youth training in all our projects. We believe that all of us have an important role to play in the economic advancement of our youth. True to our commitment to deal effectively with poverty, we will invest record amounts in the EPWP, in the next three years to the tune of R3, 3 billion.
CROSS-CUTTING ISSUES:
Broad Based Black Economic Empowerment (BBBEE):
It is imperative that The BBBEE Act is implemented as a matter of extreme urgency. This will lead to the rapid advancement of empowering black business people; the Act provides reasons for this as follows:
* To promote the achievement of the constitutional right to equality, increase broad-based and effective participation of black people in the economy and promote higher growth rate, increased employment and more equitable income distribution
* To establish a national policy and broad-based black economic empowerment so as to promote the economic unity of the nation, protect the common market, and promote equal opportunity and equal access to government services
The department has actively promoted Black Economic Empowerment. Excellent work has been done in programmes like the Emerging Contractor Development Programme, Women in Construction, and others like them, these projects will have to continue. In order for the department to conclude that it has done more in this direction, we must strengthen a number of areas. The Construction Industry Development Programme will have to focus on transformation in the industry. With the amount of construction that occurs in our province, we will have to look into the possibility of having a provincial Construction Industry Development Board. The Emerging Contractor Development Programme will have targets for each year, and these must be visible in procurement. An Incubator Strategy for the emerging contractors in particular women and youth enterprise, will have to be aligned to the BBBEE Act. Procurement reform will have to give preferential and favourable terms to Affirmable Business Enterprises, with the contract participation goal for Black Empowerment fixed at 40% in the Repair and Maintenance programme, as well as all Affirmable Professional Service programmes, etc. Through growing and supporting small and medium enterprise, we will not only promote economic growth, but also create jobs.
Honourable Speaker, the above strategic imperatives will obviously need us to reshape our plans and identify areas that are crucial for the success of this strategy. The following matters need our urgent attention.
Strengthen co-operative governance and partnerships:
The three tiers of Government have acquired vast experience and lessons over the last ten years, but the system of cooperative governance is still evolving. First, we must strengthen ties with the national departments. We are in an advantageous position of dealing directly with two national departments. We are able to integrate a big amount of work on our own. We will be able to contribute to policy development, and in the development of crucial strategies for our country and Province, if we maintain strong ties with those departments.
It is important for the Provincial Department to develop a common strategic approach with local government, and civil society around the priorities identified above, in order to ensure that we meet our social, economic and developmental goals as set out in the GPG ten year strategic framework. The development of a common strategic vision is key to ensuring that provincial and local governments act in unison in the pursuit of common goals.
With this view in mind, we will strengthen and expand the terms of reference of the Gauteng Provincial Consultative Forum and the Transport Coordinating Committee, within the framework of legislation, together with the department of Local Government and Land Affairs.
Our relations with communities currently are limited to consultation and participation in structures, not real community-partnerships for development action. We will establish a directorate for stakeholder management. This will strengthen our ties with all stakeholders, including communities. In this light, we will also strengthen our partnerships with business. We are aiming to improve on our corporatist relations with business.
Departmental Systems Improvement and Management Development:
All we have said so far demands innovative, creative management with strategic leadership skills. We will have to respond to this demand. We have already started working on the departmental systems that will assist us to do what we are doing better. We are already developing a performance management system that includes a balanced score card and a quality assurance system.
We will also strengthen our financial management systems in terms of human resource development to increase their abilities in expenditure and risk management, reporting, debtors and creditors management.
BUDGET OVERVIEW:
The total budget of the dept for this financial year is R1, 380,396,000 billion. This excludes traffic management, which has now moved to Community Safety. The budget is broken up into five programmes and the allocations are indicated in table 1.
TABLE 1:
Programme2004/5
1.Administration: 106,279,000
2.Public Works: 552,300,000
3.Road Infrastructure: 614,817,000
4.Transport: 57,700,000
5.Community Based Programme: 49,300,000
The above figures indicates that 44% of the budget is spent on Public Works and Community Based Programmes, 44% is spent on Road Infrastructure, whilst only 8% is spent on Administration, the other 4% is spent on Transport.
Table 2 presents the focus areas and the amounts that will be spent in each focus area.
TABLE 2:
Focus Areas 2004/5
Corporate Support: 87,300,000
Transport Planning and Research: 40,000,000
Public Transp Empowerment: 38,600,000
Road Network Constr & Maint: 510,817,000
Infrastructure Programmes: 49,300,000
EPWP: 215,000,000
CONCLUSION:
Honourable Speaker, as we move towards the implementation of these crucial programmes in order for our people to have jobs and be taken out of the poverty cycle, we need to realise that as South Africans, we need to tackle these problems as a collective, the Public as well as the Private sector, Black as well as White. We also need to be aware of the challenges brought to us through Globalisation. International organisations and governments are having more confidence in South Africa. There is also more confidence from international investors. The 2010 World Cup also brings its own challenges but we need to inform the world that we are ready to host the biggest and best World Cup ever.
During this term we need to, transform the elements of confidence into tangible products for our people, confirm investor confidence by implementing sound economic policies and raise morale of our people through increased socio-economic support. During this financial year I will ensure the following:
Development of a Framework on Freight Logistics in Gauteng, by September 2004; Review policy in order to improve on the delivery of public transport, by September of 2004; Review of the public transport subsidy system towards establishing an efficient, widespread and affordable public transport system that covers rail, taxis and buses, by October 2004; Develop a transport infrastructure investment framework, to fuse with the revised trade and industrial strategy, by November 2004; The finalisation and careful rollout of taxi recapitalisation by September 2004; To develop a Provincial Framework on EPWP to include aspects of transport infrastructure by July 2004. Make a review of Gauteng Labour Intensive Programme (GLIP) by October 2004; To develop a Provincial Corridor Strategy by October 2004; To develop and assist in the implementation of infrastructure planning at provincial and local level, urban and rural development, and productive investment by August 2004; To develop an Infrastructure Development Strategy by November 2004; To review strategy on work teams in Community Based Public Works Projects by July 2004. Present report on link to PPPs, This will be presented as part of the Framework on EPWP, by September 2004; Develop a Provincial Infrastructure Strategy, by November 2004; Commission Transport Economists to work on funding models to be included as part of the Transport Infrastructure Development Strategy, by November 2004; Develop an integrated Expanded Public Works Programme with all relevant departments and local government, by September 2004. In addition to this the GPG will create 100 000 jobs on an annual basis.
Honourable Speaker, Honourable Premier, Comrades and honoured guests, these commitments will ensure that Gauteng will become the preferred place to live in for all its citizens, where each resident receives the highest quality of life. Residents of Gauteng will also utilise public transport to work and to play.
Thank you.
For more information contact: Lebelo Maloka
Tel: (011) 355 7553
Cell: 083 310 2057
Issued by: Department of Public Transport, Roads and Works, Gauteng Provincial Government
28 June 2004
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