Honourable Madam Speaker
Honourable Premier
Honourable Members of the Provincial Legislature
Members of the Executive Council
Executive Mayors and Mayors Present
Councillors Present
Leaders of the Opposition Parties
Traditional Leaders Present
Director General and Heads of Departments
Senior Managers and General Staff
Our Invited Business People
Our Strategic Partners
Distinguished Guests
Comrades and Friends

Madam Speaker

As we began our journey into our democratic future; President Mandela said at the start of the first session of the first democratic parliament. “The government I have the honour to lead and I dare say the masses that elected us to serve in this role, are inspired by the single vision of creating a people-centred society. Accordingly, the purpose that will drive this government shall be the expansion of the frontiers of human fulfilment, the continuous extension of the frontiers of freedom.”

As a people we have every reason to be proud of our historic gains during our twenty years of Democracy. The expansion of the frontiers of human fulfilment, of which President Mandela spoke about are being fulfilled day by day. Central to these achievements is our success in advancing our country away from its divided past, towards the realisation of the vision contained in the Freedom Charter, that, “South Africa belongs to all who live in it, black and white.”

As a consequence of the achievements we have made during our twenty years of Freedom, we have laid a firm foundation for the new advances we must and will make during the next decade. We have made many gains notwithstanding the challenges we are facing in South Africa. Since 1994, millions of our people now have access to human and labour rights, shelter, clean water and sanitation, electricity, education at all levels, HIV treatment, social security and welfare, to mention but a few. Despite all these gains the challenges of poverty, unemployment and inequality still persist. This foundation must help us to move even further forward towards the second, radical phase of transition.

Madam Speaker

As we continue with the expansion of the frontiers of human fulfilment of which President Mandela talked about in 1994, the Executive Council Lekgotla of June 2014 enjoins that “Radical Social Economic Transformation will be the central focus in the next five years to ensure faster inclusive growth, combined with much higher levels of employment creation”. The Department of Public Works and Infrastructure is central to the fulfilment of this dictum. Infrastructure development is the backbone of job creation and the base upon which all government programmes are premised. Infrastructure development transforms the society into better communities and creates a conducive environment for economic transformation and development.
Madam Speaker

During the last financial year of the last term of the 4^th democratic government we did progress based on the formidable foundation of the past years of democratic government. Honourable Speaker, we intend, in this policy statement, to reflect on our achievements during the last financial year, and, in accordance with this dual mandate to plot a course towards the achievement of infrastructure development for economic growth and job creation, as directed by the electoral mandate of the ANC, the January 8th statement, the State of the Nation Address and State of the Province Address.

Progress in 2013/2014

Honourable Speaker

In our policy speech of March 2013, we outlined a number of priority focal areas and we have made significant strides in each of these areas. We take this opportunity to reflect on some of the progress achieved. In addressing the Departmental capacity, we have appointed 140 suitably qualified personnel in the fields of works infrastructure, property management, expanded public works programme, supply chain management, finance, information communication technology and security management to create and sustain a working environment that is conducive to improve service delivery. These appointments enhanced leadership and improved operational efficiency within the department, whilst we simultaneously exceeded the 2% threshold on disability. As of today, the department employs 41 disabled personnel, which is 2,2% of the departmental workforce. We however still have a challenge of disabled personnel on Deputy Director Level and above.

The Department made 23 appointments from the bursary programme and the provincial database of unemployed youth qualified in the following fields: Civil Engineering, Quantity Surveying, Building Studies, Mechanical Engineering, Electrical Engineering, Information Technology, and Commerce.

In collaboration with the client departments, the department has successfully completed 42 capital projects inclusive of social and economic infrastructure in terms of new and special schools, hospitals, libraries, community halls and paving of township streets.

The Department rents property from the black landlords in an effort to assist them to enter the fixed property industry which is by far dominated by the Previously Advantaged Individuals. A total rental expenditure awarded to the 21 black landlords for the period under review is R56.973 million.

The Department is also responsible for the payment of services on all provincially owned and rented properties for all provincial departments (excluding electricity and water for Section 20 and 21 schools). Total Expenditure on municipal services amounted to R250. 627 million and expenditure on Rates & Taxes was R 279.925 million.
Madam Speaker.

The Provincial Expanded  Public Works Programme (EPWP) as  one of governments short to medium term programmes aimed at alleviating poverty and reducing unemployment has created 59 790 work opportunities which translates to 17 878 Fulltime Equivalent jobs from  1 248 projects amounting to R303.849million. These work opportunities were generated through relevant public bodies within the Free State Province.

Initiatives employed to realise these work opportunities include the Cemetery Maintenance Programme, Food for Waste Programme, Community Halls Renovation Programme, Township Revitalisation Programme and the Community Works Programme.

A total of 126 participants were trained through National Youth Service programme in the Hygiene and Cleaning Learnership and are now employed as permanent employees of the department, with effect from 1st April 2014 as part of the exit strategy. Madam Speaker this achievement demonstrates the commitment of the department in fighting the National crises of youth unemployment through skills empowerment work placement.

2014/2015 Budget allocation

Madam Speaker

Our departmental total budget allocation for this financial year is R1.414 billion. Administration Programme receives R104.913 million. Public Works Infrastructure which includes works and property functions receives the biggest slice of this allocation at R1.131billion. The Expanded Public Works Programme allocation is R178.901 million. Because of its transversal nature other additional budgets for projects will come from relevant public bodies.

Madam Speaker

The rendering of effective and efficient infrastructure, maintenance and related support services by the Province is essential for the provision of quality services to citizens. The National Development Plan clearly directs that a more efficient and competitive infrastructure is required to facilitate economic activity that is conducive to growth and job creation. The establishment of the Department of Public Works and Infrastructure will therefore respond to the infrastructure requirements of client departments and the needs of the citizens.

Since 2009, President Zuma has emphasised the state’s investment in infrastructure during his State of the Nation Addresses. In the following years, in particular in 2012 he was emphatic “For the year 2012 and beyond, we invite the Nation to join Government in a massive infrastructure development drive”. The National Development Plan highlights the importance of infrastructure development as an enabler of socio-economic development. Infrastructure development in the province is contextualised in relation to and takes direction from the Free State Growth and Development Strategy and the Provincial Spatial Development Framework. The core areas of the Department include public works, infrastructure development, property management and Expanded Public Works Programme (EPWP). These key programmes are at the centre of the fight against the triple challenges of poverty, unemployment and inequality.

Administration

Madam Speaker

The Department of Public Works and Infrastructure by virtue of its mandate of works infrastructure provisioning, has a pivotal role to play in this mammoth task of poverty reduction and job creation. The department is responsible for the provision and effective management of provincial government land and buildings. To fast-track and enhance the delivery of provincial socio-economic infrastructure, the Department during the 2014/15 financial year will review and align its organisational structure to the Infrastructure Delivery Management System (IDMS) model for the Free State Province, which will include incorporation of the Health and Education infrastructure delivery arms. The IDMS model would be our core operating framework which requires substantive investment in achieving the certification of our professional bodies.

As part of improving and strengthening the Provinces technical expertise and bolster the development of scarce skills, we will appoint staff with sufficient competencies in the field of civil, mechanical and electrical engineering, quantity surveying, architecture, risk management, property management, finance, supply chain and especially the construction procurement environment. In these appointments, the department will furthermore vigorously address gender representativity, youth and the disabled where these candidates possess adequate competencies.

Infrastructure development

Madam Speaker

The department has an important role to play in enhancing the delivery of infrastructure in the province. In this financial year 2014/2015, our focus will be on the acceleration of socio-economic infrastructure projects on behalf of client departments and of our own new and running multiyear projects amongst others; the Upgrading of Free State Provincial Government Building, Upgrading of Social Development Offices, MPL Houses upgrade, Qwa-Qwa Offices upgrade, and upgrade of Thaba Nchu offices.

Working together with the Department of the Premier and Free State Development Coperation (FDC) in line with the Executive Council resolutions we will put in place processes for the construction of Regional offices, Legislature offices and the New Government Building.

We will in line with the Executive Council Lekgotla resolutions construct Roux Ville clinic in this financial year through massification. Madam Speaker, the provision of infrastructure serves to enhance efficiency across the economy, laying the basis for stepped-up growth and employment creation in every industry and at the same time it can also significantly advance social equity goals and address inequalities in the society, asserts the New Growth Path.

Property management

Madam Speaker

We remain committed to change the Property relations in the Province. The department continue to play a central and decisive role in the unfolding transformation of the property sector. As part of transforming the property industry the department has commenced with the development and implementation of an integrated leasing strategy and accommodation plan. Through accommodation plan the department will be able to identify opportunities for the previously disadvantaged people and how these opportunities will be accessed.

A general maintenance backlog across all categories of properties has developed and grown because of insufficient budgets in previous years. Efforts to reverse this situation can only be made possible with sufficient maintenance budget allocation, which is still a challenge to date. The budget for maintenance sub programme in 2014/15 financial year amounts to R150.142 million, 2015/16 is R163.533 million and 2016/17 is at R172.354 million. These figures are inclusive of salary and all administrative related expenditure. These still falls short of the benchmark of R1.48 billion. However, the decrease in the maintenance budgets of departments could be related to departments only focusing on minor maintenance work instead of scheduled maintenance informed by the life-cycle costing of immovable assets.

Working together with municipalities and in promotion of the provisions of the Intergovernmental Relations Act, the department will continue to make timely payments of accounts to ensure that municipalities are economically viable to deliver the much needed quality services to the communities. An amount of R298, 861 million for rates and taxes has been allocated and R236, 180 million for payment of services to municipalities and private service providers has been set aside for this purpose.

Expanded Public Works Programme

Madam Speaker

The Expanded Public Works Programme remains the key government programme that strives to uplift the socio-economic status of the poor and unemployed. It also seeks to provide opportunities for basic training to new job seekers and in some cases newly qualified young people. The National Development Plan sees initiatives such as expanded vocational education as a strategic response to youth employment. The department implements the EPWP, National Youth Service (NYS) and Recognition of Prior Learning (RPL) as platforms to promote skills development and develop work experience.

Madam Speaker

EPWP Phase 3 has commenced in April 2014 and will end in 2019. In his state of the Province Address, the Honourable Premier asserted that for this year, the Province is expected to create 58 505 work opportunities. One of the programmes implemented under EPWP – the Township Revitalisation Programme will continue in all fourteen towns. The programme focuses on upgrading and paving of township streets as well as the replacement of old infrastructure.

The Department’s contribution to the above target will be 2600 work opportunities in this financial year.

Conclusion

Madam Speaker

The new financial year has just begun and the Department is ready to ensure that we deliver on our mandate with the available limited resources, in time and with the required standard. We also promise to work tirelessly and with full cooperation with our client Departments to ensure a full realisation of this mandate.

I would like to express my sincere gratitude to the Premier for affording me the opportunity to lead the Department of Public Works and Infrastructure in the current fifth term of Government. To my colleagues in the Executive Council, thank you for your invaluable advice and counsel.

Finally, let me take this opportunity to express my sincere appreciation to the Head of Department; Mr. Maditse Seoke, Senior Management and the entire workforce of the Department for the support they have shown since I joined the Department. I would like to acknowledge the sterling work of my predecessor Me Sisi Mabe whose hard work would make my task easier indeed a good story to tell.

Thank you to my family, especially my wife for their support and for allowing me to serve the people of our country at this level.

Madam Speaker I hereby table the 2014/2015 budget vote for the Department of Public Works and Infrastructure.

I thank you