Issued by: Gauteng Provincial Government
Feb 22 1996
INTRODUCTION
Honourable Speaker and Fellow Members,
The past year has seen the creation and consolidation of much of the framework within which Gauteng can grow and prosper. Our accomplishment in putting together the engine needed to drie Gauteg, and South Afrca, into the 21st century should be commended. We have achieved this through creating, from next to nothing, a dynamic provincial government, tight fiscal discipline and a cohesive administration. There is a need to determine whether the vehicle of Gauteng is going to lead the race in top gear, or whether it is going to splutter in an unroadworthy manner into the next century.
We need to ensure that the provincial machinery runs effectively, with each component in working order. The people of Gauteng all have an important contribution to make and must be given the opportunity to play their part in reconstruction, in rebuilding our economy and in improving the quality of life of all people. The top gear we need to achieve, as a province and as a country, is a strong, sustainable growth rate which can accommodate all our people through providing jobs and opportunities to participate in every fcet of our social, political and economic life.
This government needs to find creative ways to broaden the economy and provide employment. Having a job means much more than receiving a pay cheque at the end of the month. It restore to people the dignity of self-sufficiency. It given them the incentive to further their training and to seek innovative ways of stimulating their own creativities. Each day, we all rise to go to our various places of work. But how many of us ever pause to think what it must be like not to have the privilege of employment?
Quite clearly, once employed, a whole new world opens up to you. A job is the master key that opens a number of doors which have previously been shut in the face of the poor. With the power of a job, one has access to food, clothing, shelter, health care, education and credit. Jobs give people access to savings, to start the business they have always wanted, to have the means to make choices about where they live, where they send their children to school, where they want to be in ten years. time.
Let it be quite clear that government has limited capacity to create jobs directly. However, government is central in establishing the appropriate total environment and in proactively facilitating the strategic framework that will enable and encourage industry to create the vast number of jobs required.
The recently released report compiled by the World Bank, entitled "Key Indicators of Poverty in South Africa" reflects that the majority of the people surveyed stated that facilitating employment was the most important contribution government could make to help their household. What was especially important about this response was that it was the predominant answer given by both the poorest of poor in South Africa, where unemployment stands at 53%, as well as the richest 20% of households, where unemployment is a meagre 4%. Quite clearly, what South Africa wants, and needs, is jobs.
South Africa 2020 is a global vision that the national government is formulating regarding where we envisage our country to be in 25 years time. Our national leaders have emphasised that one of our most important targets must be the reduction of unemployment. The reduction in inequality and elimination of absolute poverty should focus on an increase in the share of national income to persons in the bottom 40% of households. We need to develop a plan for Gauteng which embraces the spirit of this vision and which also considers the particular needs of our province. Much work has already been done on developing our economic and development vision for Gauteng. Our own vision must be situated within the national growth and development strategy. We require concrete action to ensure that our vision is an expression of both national and provincial strategies.
In order to understand what needs to be accomplished in the next year, we look at what has been achieved over the past year, in the Gauteng province. This overview will highlight our strengths and weaknesses and provide a framework for necessary action.
Overview of the year
In the Opening Address to the Legislature for the year 1995/96, the strategic priorities identified by Cabinet were mapped out for you. It is appropriate that the work of the past year should be assessed in line with those priorities. At this point, we must pause and deliberate on how much we have advanced. Your task is to interrogate government, in a constructive and strategic manner, about what has been achieved.
Several key priorities were identified by our Cabinet:
First, to facilitate the economy Second, to bring about stability, safety and security Third, to facilitate the entire delivery process Fourth, to establish a new provincial public administration Lastly, a strategy to communicate all these with our people
There have been impressive successes in all of these areas, but also shortfalls in terms of our expectations. However, it is upon the foundation that has been laid out this year that we can build for the coming year and those thereafter.
ESTABLISHMENT OF A NEW PROVINCIAL ADMINISTRATION
It is appropriate to begin with our fourth objective because the establishment of a representative administration has been a critical step forward in being able to successfully govern this brand new administration, this province which is a mere twenty two months old. The public service isresponsible fr interfacing with the people and ensuring the effective implementation of ideas that we generate. As elected political leaders, we realise tha the mandate give to us by the people of Gauteng cannot be translated into effective realisation of our plans without the support of the well-serviced machine that drives our work. One of the greatest successes of the past year has been the staffing of our departments and the creation of a more representative civil service.
All departments have now completed their organizational structures and most of the staff are in place. The Gauteng Provincial Services Commission (GPSC) has played a critical role in ensuring that line departments, as well as corporate services components, have been carefully designed and established. Departments such as Education, Health, Safety and Security and Welfare and Population Development have had to cope with the restructuring of systems involving thousands of employees, spread out in offices across the province. The enormity of this should not be underestimated.
The GPSC has also ensured that outstanding labour relations issues and tensions, as well as the adjudication of individual cases, have been dealt with. The unions have played an active role in ensuring that a strong relationship is forged with the new administration. Labour has been a critical component of the success of the transformation of old civil service structures and we are pleased with the progress made this year. Challenges issued by the unions with regards to certain decisions taken about the relocation of governmental Head Office employees to Johannesburg have been welcomed as a healthy interaction between employer and employees. Labour and their representatives have a duty to ensure that settlements are negotiated to the benefit of all.
In our Gauteng civil service a careful balance has been struck between retaining the expertise of existing staff and injecting people with valuable skills from outside the civil service. Major changes have been made at the level of management where Black people and women were seriously under-represented. We have moved from a situation where women constituted 2% of senior management to where they now occupy 23% of this evel of staffing. Continuous improvement is needed in this area, but we have made an excellent start. In the Premiers Office, women constitute 80% of staff. Even more progress has been made with regards to attracting dedicated and capable Black senior managers who now constitute 47% of the total senior managers of the administration whereas, in the past, only 5,7% of senior management was Black!
Corporate services, which plays a key role in serving the whole government with regards to staffing, financial and training issues, has been rationalised. A performance management system which aims to re-orientate employees and departments towards performance and delivery will hopefully be introduced this year. With these structures in place, we now have a civil service which we can proudly call our own. It is equipped and capable of putting both workable systems and effective processes in place. The civil service will support the policy work of the executive, as well as the vision and strategic goals of the government.
The establishment of the Gauteng Provincial Government's Head Office in our capital city, Johannesburg, is well underway. All departments will complete the establishment of Head Office staff by April this year. Despite understandable initial resistance from employee organisations, staff transfers from Pretoria to Johannesburg are in the process of being negotiated and we are confident that finality on outstanding issues will be reached soon.
Major interventions are underway to ensure that our government goes marching into the 21st century with all connections made in cyberspace. The Metropolitan Area Network will facilitate speedy and cost effective voice and data communication between ministries and departments. Perhaps we may even get closer to maximum reduction of unnecessary paperwork before the turn of the century!
What we have achieved in the past year is no small task. Much of what has been accomplished has happened behind the scenes. The public sees only the presence of civil servants and very seldom are let in on the debates and difficulties inherent in such a fundamental process of transformation. That must be rectified so that people can understand what has been needed to restructure the civil service in order to make it function effectively. We believe that the time and energy put into restructuring and realigning our entire provincial structure will pay out relatively substantial dividends this coming year when we start to fully utilise these structures for effective delivery of the RDP and general services to the Gauteng public.
DEVELOPMENT OF THE ECONOMY
The economy of South Africa needs to reach a growth rate of around 6%, sustained over many years, in order for us to be able to stimulate job creation and economic empowerment. To ensure that Gauteng, as the economic heartland of South Africa and the engine which drives the Southern African region, is able to spearhead this kind of growth, a number of measures have been undertaken. Rapid imposition of tight fiscal discipline in the provincial government has ensured that the projected shortfall announced at the beginning of the financial year has been substantially reduced from R1,2 billion to R64 million. We implore that Minister Moleketi to release his tight fist only so that we may shake his hand!
Central government has taken note of this fiscal achievement and the part of Gauteng and is sympathetic to our standpoint that provinces which adhere to fiscal discipline ought to be encouraged and rewarded. We appeal to the drafters of our final Constitution to ensure that such discipline is encouraged and that provinces are urged to work together to find solutions to fiscal constraints, for the benefit of the entire country.
The Gauteng Tender Board has been established and legally proclaimed (as of Feb 1. 1996). In order to ensure that emerging business, particularly Black entrepreneurs, is empowered with regards to government tendering, the Department of Finance and Economics has formulated policies to ensure that SMME's are advantaged in the tendering process without detracting from standards. This policy will also serve to assist small business in other key areas of the economy, spreading ownership and ensuring a productive balance between large and small enterprises.
Trade and investment promotion initiatives such as the trip to the Asia-Pacific states have seen burgeoning interest in South Africa as a trading partner and an investment destination. We now have partnerships with both the Kyonggi Province of Korea and the Free State of Bavaria, as well as a technical assistance relationship with North Rhine Westphalia. The sisterhood understanding with the Kyonggi Province includes, amongst other things, the exchange of relevant economic information on goods and services, the establishment of an electronic database of businesses and organisations, mutual asistance and cooperation in the field of computer technology and trade and tourism promotion. With the Free State of Bavaria some of the most important commitments made include mutual exchange with regards to SMMEs and consumer affairs, assistance in setting up administrative and decision-making structures in Gauteng, professional training in the fields of policing and housing construction and the provision of information for mutual benefit. In addition, we have exchanged exhibition space and business databases with our Korean counterparts who are also sponsoring the running of a school in Mamelodi.
These relationships are important for the development of strong relations and the exchange of ideas and expertise between countries and within the business sectors. However, government can only facilitate such agreements and partnerships. It is the responsibility of the business sector, investors and traders alike to be aggressive and to seize such opportunities where they arise.
The Asia trip directly or indirectly led to almost R2 billion investment in Gauteng which, when taken together with a range of other factors, consolidated growth in GDP of above 4% in the Province last year.
The Gauteng Gambling and Betting Act has been passed, with the Gambling Board to be established and the first gambling licenses granted in 1996. 1995 also saw the beginning of the process of establishing the Gauteng Liquor Board.
Last year Cabinet identified tourism as a strategic sector in which the government could play an important role. Tourism is the fourth largest contributor to foreign exchange in South Africa. 1995 saw an increase of 40% in foreign visitors to the country, most of whom spent time and money in Gauteng. In fact, approximately 24% of all foreign visitors have Gauteng as their destination, and this is not taking into account those visitors who stop over in Johannesburg while travelling to other parts of the country. This is a vast resource which needs to be exploited more successfully by all the role players within this industry. Our hosting of key sporting events such as the Rugby World Cup and the African Cup of Nations has shown the potential of the region for growth in both the leisure and tourism industry. Last month, our resources here in Gauteng were stretched to the limit to test our capacity to host three major events all on the same day: international cricket at Wanderers, international soccer at FNB and Pavarotti at Loftus. All without a hitch, all full house! Our roads, commercial centres, service industries and various infrastructure were tested to the maximum. Thanks to the efforts of the traffic police, general policing services, various airports, taxi and bus industries and many more - we pulled off what could be considered the most entertaining sporting and cultural day in the country.
We need to harness the interest and wealth being generated in this province and make it work for the people. Unfortunately, delays in the establishment of the Gauteng Tourism Promotion Agency has resulted in less of a cohesive approach being applied to the sector than we would have anticipated.
Much remains to be done and 1996 must see further development of initiatives aimed at stimulating and expanding the economy in a manner that generates a significant number of job opportunities.
STABILITY, SAFETY AND SECURITY
The eradication of political violence is a great achievement of our new government and must continue to be consolidated, notwithstanding the festering wound in KwaZulu/Natal which is a problem of all South Afric an not just a regional issue. In our province, a peaceful victory has been won in former war torn areas such as the East Rand and Vaal. However, the prevalence of violent crimes such as murder, rape, hijackings and house breakings often tends to overshadow what has been achieved in this regard. Certainly crime must be identified as one of the greatest challenges facing our government in 1996.
Having achieved a dramatic reduction of incidents of politically related violent activity, the attention of our Ministry of Safety and Security was, and still is, focused upon controlling the rising wave of crime, which threatens not only the lives and security of the people of Gauteng, but also economic growth and stability. The Ministry had to oversee the transformation of the South African Police Services into a professional, representative, impartial, transparent and accountable service which upholds the Constitution and protects the fundamental rights of all people.
Despite the very difficult circumstances with which the Ministry has had to work, progress can be reported on a number of levels. Successful negotiations with the business initiative against crime resulted in the acquisition of highway patrol vehicles, to strengthen the capacity of the police to deal with car hijackings. The number of vehicle hijackings in Gauteng over the December period declined drastically. Illegal weapons have been seized in a number of areas. The police conduct such operations on a continuous basis and we are confident that this shall eventually lead to the eradication of the culture of such dangerous weapons in our society.
Community Policing Forums (CPFs), established in terms of the Community Safety Plan, are there to ensure that communities are enabled to engage meaningfully with local police about problems and priorities. Through using participatory problem solving methods, we believe that the capacity for communities to take control of their own development and safety is increasing. The spirit with which people throughout Gauteng have joined the CPFs illustrates that citizens are prepared to contribute time and energy to ensuring that our streets are safe. We have all said "enough" to those who make our neighbourhoods and homes unsafe.
The efforts of the business sector in getting involved in fighting crime through various prevention initiatives, as well as the donation of money and vehicles, must be applauded because it is only through strong and successful state-business-civil society partnerships that we will finally put an end to violent crime.
Security has also been raised as an issue in hospitals, clinics and schools. Community structures, unions and the police have been drawn together to outline a process for dealing with the safety of staff, patients and pupils, as well as stocks and equipment.
To deal with ongoing incidents of violence in the taxi industry, the Ministry of Public Roads and Transport has been involved in the establishment of a forum for all key players in the industry. The primary aims of the forum are the implementation of training and conflict resolution.
Much progress has been made over the past year in providing safety and security to the people of Gauteng. However, we have to acknowledge that our law enforcement officers are working with an inadequate budget. It therefore becomes imperative to not merely regard crime as Number One on our agenda of urgent needs, but to treat crime as such in budgetary terms. President Mandela called all the people of the country to unite against crime. We echo that call with one which says, "Let Gauteng be a province united against crime."
During our recent visit to the United States, we met the New York Police Commissioner whose anti-crime strategy has resulted in an unprecedented 30% decrease in crime and we returned with certain lessons from this. Also during the course of our visit to the US, the question of crime was raised, but the issue to the world was not whether or not we have crime in South Africa because, after all, it is an international phenomena of different degrees from country to country. The issue to traders, investors and tourists alike is whether a political will exists on the part of government to combat crime and whether such a will enjoys popular support in the form of citizens standing behind government with regards to such campaigns, whether the law enforcement agencies are properly motivated, equipped and supported, whether such law forces are themselves free of crime, whether the judicial as well as the penal system are adequately equipped to enforce the relevant forms of punishment. but, most important, is whether the message of all these anti-crime components gets across to wrongdoers who must be made to realise that crime does not pay.
The totality of all these factors matters more to the world outside than the mere question of crime. We were able to articulate our position on this question, especially with regards to the successful package against crime developed by Justice Minister Omar, with input from Gauteng.
Safety and security will continue to be a top priority agenda item for 1996 and hopefully the budget shall reflect this. In addition, we call on the people of Gauteng to assist the police wherever possible in coming forward with any information they may have on crimes that have been, or are about to be, committed.
FACILITATE THE ENTIRE DELIVERY PROCESS
On the question of essential social services, delivery is a word we hear so often and we wish it would be as easy to deliver tenure, security, houses, clinics, schools and services as it is to deliver newspapers. Our task as government is to concentrate on facilitating the process of providing services and infrastructure. The provision of such vital services is dependent on a health economy with growing job opportunities. More employment will ensure that more people in Gauteng have the means to be housed, fed and educated. We need to prioritise our activities in order to ensure that we are reaching the sectors most in need of assistance. An economy which can offer all people, including the most marginalised and destitute, the opportunity to make an active, productive contribution is our answer. 1995 has been a year of laying the groundwork, of ensuring the infrastructure established will be sustainable and that the RDP proposals can be implemented. This year ought to the stimulation of further economic growth and development.
We now have all the structures in place to go effectively. furthermore, the Gauteng Local Government Forum has been established to ensure that the lines of communication remain open between local councils and the provincial government. The Gauteng Association of Local Authorities (GALA) has been officially launched and we believe that it will be playing an important role in the co-ordination and development of government at this level. Training programmes presented by the local authorities will be monitored to ensure that the enablement of those of us who are new in government is effective.
In the less than two years that we have been in government, we have worked very hard to ensure that national and provincial governments have developed a co-ordinated strategy and common vision for the growth and development of South Africa. The same symbiosis of purpose should develop at the local level, especially with regards to local budgets.
Part of socio-economic growth and development includes the people of Gauteng making a commitment to pay for services. The Provincial Campaign on Masakhana has been launched to build a spirit of responsibility amongst our people. The campaign focuses on, amongst other things, the acceleration of service delivery, community responsibility for payment of services, community and local authority maintenance of investments and community policing to promote peace and stability. As mentioned earlier, we have witnessed great successes in community policing and the development of relationships of co-operation with the police services. However, we still have the challenge of ensuring that all adequate services are paid for and that communities recognise their economic responsibility in the process of transformation. If people can afford to pay for services and choose not to, then they must understand the government's point of view when these services are withheld. We hope to see levels of payment throughout the province matching those of Katlehong and people feeling the benefit of their contribution directly.
The cooperation of the people of Gauteng should be met with the provision of decent services - schools, clinics, security of tenure, houses. In the past year we have managed to meet some of these basic needs, although the demand remains great. As of now, 37 municipal infrastructural pro- grammes have been approved, amounting to several millions of rands. Ambulance and Fire Services have been integrated to improve effi- ciency. A disaster management committee has been established, and communication controls installed in areas such as Katlehong. The Provincial Housing Board has approved the first phase of 5 600 sites in seven projects, leading to the eventual total of 14 500 sites, representing a development investment of around R95 million. The outstanding ten projects identified for development will be galva- nised into action as soon as possible. 88 500 houses are in the process of being transferred to their tenants, giving them the opportunity of being home owners for the first time.
Caring for, and protecting the rights of, the most disadvantaged sectors of our population is a priority for this government. There- fore, the redirection of funds to these communities must be seen as the consolidation of the process of delivery. The Ministry of Social Welfare and Population Development has seen to it that secure care is being provided for juveniles awaiting trial. Approximately 500 juveniles are being cared for daily. However, this should not imply that we are providing a penal system which is the breeding ground for little criminals. We will not have successfully carried out our mandate in this area unless clear, strategic rehabilitation program- mes are put in place. We also need to recognise that our priority is to be tough on crime, tough on the causes of crime and not let offenders slip through the system, no matter what age they are.
Furthermore, we are committed to the plight of destitute children in Gauteng. The President has provided us with an excellent example with his Children's Fund. One child on the streets of Gauteng is an indictment against this society at large and we must all be committed to ensuring the safety and well-being of such chil- dren. This involves a serious and committed approach to education.
In education, a great deal of progress has been made. As we know, education is perhaps one of the most complex tasks facing both provincial and national departments. It is of paramount importance that we prioritise this sector as it is critical for the future growth and development of our children. It is also critical as it is an investment in people as the productive, creative and sustainable core of the economy. We need to employ creative means of utilizing our limited funds to provide for the ever increasing numbers of children in this province.
The school system in Gauteng has continued to tackle increasing numbers of students. With the start of the new school year, we are being continually reminded about the enormous challenges we still face in this area. Some schools have been provided with toilets, electricity, water, fences and electricity. Basic renovation of classrooms has begun. New schools are planned for the Vaal and Soshanguve.
The budgetary cuts to education have placed great restrictions on our ability to meet the increasing demand for education in Gauteng. We have attempted to tighten our belts wherever possible, but have suffered greatly in the process. Our province has demon- strated the essence of fiscal discipline in this regard; yet it appears that central government saw the need to provide extra grants for those who did not exercise such financial discipline. It is proper to reward and not punish those who are adhering to the principles of good governance. The opposite may tend to discourage hard workers to the detriment of the country. Other provinces have not been as disciplined and have been assisted with further grants from the national government.
The enactment of the Education Act of 1995 marked the beginning of a necessary legal framework within which the transformation of education can take place. Significantly, the Act provides, for the first time, a common legal basis for the education of all the children of Gauteng in a single, non-racial, equal and just education system.
We have taken significant steps towards achieving educational equity by introducing common teacher provision scales across all schools in the province. The racially based disparities charac- teristic of apartheid education will very soon be a thing of the past.
The interim report of a Committee established by the MEC to examine the Culture of Learning and Teaching attributed the collapse of a culture of learning and teaching to; inadequate school infrastructure (such as buildings, toilets and water); weak system and structures of school management; poor intra-school and community relations; and the impoverished socio-economic context in which the majority of our schools exist.
Concerning the use of land for agricultural processes, we note that while we are a pre-dominantly urban province, agriculture provides the means of living to thousands of farmers in Gauteng. The most important responsibility of the Ministry of Agriculture is to provide training and extension services to farmers, prioritising those who are beneficiaries of the programmes of land restitution and redistribution. The policy for the settlement of small farmers, allowing for the leasing and disposal of public land for agricul- tural utilisation, has been approved by cabinet and will be opera- tional by May 1st. This will put an end to the untenable practice up until now of making land available for farming on a thirty day lease basis.
A pilot land reform programme, 36000ha in extent, is operational in Rus-de-Winter, north of Pretoria. This pilot will contribute to the restitution of land to previously dispossessed communities, redistribute land to those in need and establish new systems for community land ownership. The pilot will also make a contribution to the development of rural communities in Gauteng through the provi- sion of public assets such as schools, clinics, community centres, clean water and other amenities.
Over the past year, support has been given to a number of commercial farmers in the province. Assistance has also been given to emergent farmersand diadvantaged communities in rural and urban areas. This includes several community garden and training projects.
The Rapid Land Development Programme has been developed as a demonstration of the Provincial Government's Commitment to address homelessness and landlessness in a planned and equitable fashion. This has been developed within a framework which acknowledges that the challenges Gauteng is facing with regards to provision of hous- ing and land are enormous. There are budgetary and administrative constraints which cannot be ignored. The Programme therefore focuses on people in crisis circumstances, linked to measures to control or manage land invasions. The objectives are to secure rapid land release, early settlement with basic services, followed by upgrading housing provision and supply of social and public infrastructure. At the moment this programme is limited to 5600 sites and should be seen as a component of a comprehensive and policy which takes into account the dynamics of increasing urbanisation as well as the vulnerability and lack of security of back-yard shack dwellers.
Eighteen projects are in progress across the Province, in a total programme worth approximately R225 million. A community creche and clinic in Wattville on the East Rand are already being built, with other projects such as the construction of community halls and centres, water supply systems and school buildings beginning to take shape in the next six months.
Let it not be said that Gauteng is all work and no play! In the past year, the playing fields of Gauteng have been filled with people enjoying access to sporting and recreational facilities. The Masakhane Games drew 6000 participants. Successful sporting events have, Soweto and Sharpeville. Coachi were conducted in conjunc- tion with Sports Federations such as soccer, Cricket, athletics and tennis. Sporting facilities in Boipatong, Sharpeville, Bophelong and many other areas are being developed. However, insufficint funds have meant that the great demand for these facilities could not be met.
Sport has played a large role in taking some of our youth off the streets, away from the influences of drugs and crime. In the place of pistols, we have put cricket bats and tennis racquets and, most importantly for the majority of people in this country, soccer balls. The private sector should be commended for their support of international sporting activities, as well as for sponsoring sporting clinics for our young enthusiasts. These latter-day heroes of ours, such as Mark Fish and Hansie Cronje, must go and build something good out of this support, to continue to be role models to our young people.
In the same way, we must recognise the power the arts have to unite and transcend cultural barriers. They provide a voice, a means of expressing oneself, for young people who are often frustrated and angry. In South Africa, we have a rich tapestry of centuries old cultures and traditons. We need to maintain all of these, allow them to grow and flourish, while still creating a uniquely South African identity in the process. Part of this process can be seen in the establishment of Arts and Culture Forums to promote greater unity and net-working in Arts and Culture in the areas of Mamelodi, Vaal and West Rand and other areas of Gauteng.
New community libraries have been erected by local authorities in co-operation with the Gauteng Provincial Government in Wattville, Ivory Park, Graceland, Lenasia South-East and Meyerton. This has been achieved hand in hand with a campaign to foster a culture of learning amngst the people of Gauteng, especially our school children. One of the most critical tools of learning is reading. Our children must learn to read newspapers and magazines, books and signs along the road. Our culture of learning must embrace a culture of reading in order for it to be successful.
Although we have every right to congratulate ourselves for having made great strides this year in terms of putting into place the mechanisms for RDP progress, we must nevertheless not rest on our laurels. Our focus must now shift towards ensuring that all our outstanding plans on paper are translated into tangible schools, clinics, sports fields, police stations and cultural centres within the context of a growing economy.
COMMUNICATING ALL OF THESE TO OUR PEOPLE
From the onset, we committed ourselves to constantly communica- ting with the people of Gauteng on the affairs of government, a two-way process where the issue of critical importance is the feedback we get from the people at large.
We have gone some way towards achieving this, by producing several of our own newspapers, magazines and videos to communicate with our own employees - as well as the millions of people they serve.
We also employ other vehicles such as the newspapers and maga- zines owned by the commercial media to reach their readers. We occupy the hot-seats in television studios. And we use the airwaves to talk directly to our people - whether it is in the studios of commercial stations like 702 and Radio Zulu, or in the cramped environs such as those of Soweto Community Radio and ALX-FM. We then burned gasoline and tyres across the land so that people are aware of what government is doing and we, of what they think. We respond to thousands of letters and other enquiries and attend all sorts of meetings requested by members of the public, from plush suburbs and company boardrooms to squatter camps and rural settlements. Through- out this process, we have been driven by the need for transparency and honesty. We have employed the media, both our own and that of others, to account to the people, and to give them feedback on the achievements - and the frustrations - of government.
But obviously we did not want this communication to be a one-way process. We have tried, therefore, to increase public participation in the affairs of government. The legislature has developed a specific programme to uild public participation in the legislative process, and we are gradually demystifying the affairs of government so that the people of Gauteng are able to keep a firm hand on the process of governance. More publications will follow which explain the workings of government, our achievements and drawbacks in office, and our plans for the future.
This process of public participation must continue. As leaders, we will ensure that we continue to touch every part of this province, to communicate first hand with those who live within our borders. As we do so, we will make sure that we do so not just with open mouths, but with open eyes, ears and hearts.
Challenges ahead
The programme of action report, "Taking the RDP Forward", com- piled by Minister Jay Naidoo describes reconstruction and develop- ment as a journey. Our starting point is an inheritance of poverty, inequality and stagnation, our final destination being a strong, democratic and prosperous South Africa. "The challenge is to work out how to get there". Our achievements of the past year have pro- vided indicators for defining the route we need to take. We believe that there is a vision for where Gauteng needs to go and what we wish to outline here are some of the means we wish to employ to reach our vision of the future.
We must remember as we are sitting here today that this Legi- slature has the responsibility to ensure that the needs and desires of the people of Gauteng are reflected in binding laws that will guide the province and enable it to grow and develop. Unless we can develop a workable legislative programme which can be embraced by this administration, we will be unable to effect the kinds of changes which are so necessary. This is a huge responsibility and should not be regarded lightly.
The key to greater prosperity, security and equality lies in sustainable growth, the proceeds of which are utilised for the benefit of all. To make a difference to the lives of ordinary people such growth must generate sustainable, meaningful job opportunities. As stated previously, and we will repeat this over and over, it must be reiterated that job creation is fundamentally important for this province and for the country as a whole. Jobs will ensure that people can afford food and health care, a decent education for their children, as well as access to recreation and leisure and consumer goods. We must continue to articulate this message for the next twenty five years and more, if we take ourselves seriously about sustainable growth and development.
The state cannot meet all of the needs of this Province and country on its own and should not be expected to. Our responsibility in the short and medium term is to create an environment in which these jobs will be created so that our citizens are able to stand on their own two feet, so that crime becomes unnecessary, so that presently essential levels of welfare transfers from the state can be reduced.
This is the philosophy that permeates our contribution to the national Strategic Vision - South Africa 2020: Gauteng as the key point of the nation .. a province that, together with others, must lead the nation into a period of high, sustainable, job-creating growth that will ensure economic emancipation to compliment political liberation.
We mentioned earlier the need for a 6%, sustainable growth rate nationally. In other words, one that is far above the population growth rate. In order to achieve the additional 3% required to meet the country's target, 1% will be generated from the key areas such as government intervention (including RDP initiatives), mining and agriculture. The further 2% will provide us with a substantial chal- lenge and will result from drastic measures employed to improve the economy and also through support of major national measures. This requires a concerted national effort.
The economy of the Province has grown at a healthy rate this year, again slightly ahead of the country as a whole. This is pri- marily due to the extremely competent management of the economy at national and provincial level. Sound monetary and fiscal policy has seen private sector investment grow by between 9 and 16% during the year, while almost R20 billion has poured into the country from out- side our borders. We also have one of the highest Human Development Indices in the country. However, we must note that growth must be growth in all respects. There must be no confusing profit growth with economic growth, as some in the private sector are inclined to do. Sustainable growth must reach all of our people, it must make a difference to the poorest of the poor. It must give them jobs. Nevertheless, we note that the current growth rate is private sector driven where there is now a net capital inflow, controlled govern- ment expenditure and increased business interest on the part of direct foreign investment.
We also need to remember that Gauteng needs o build on its growth rate in order to contribute to the development of the country as a whole because we do not have the capacity to cope with the unstoppable tide of people into the province, should life not improve elsewhere for them.
The growth we have seen thus far has not yet made a serious dent in the shocking unemployment figures. One million people are without work in Gauteng alone.
The Reserve Bank estimates that only 52 000 additional jobs in the formal sector have been created since economic recovery began in May 1993. This gain was considerably smaller than the loss of 420 000 employment opportunities in the recession of 1989 to 1993! This is a crisis of massive proportions that threatens to undermine our hard-won national gains.
We must continue to support national initiatives in fiscal and monetary policy which aim to stabilize our macro-economy. The initiatives of the Minister of Finance and his eputy Minister are to be welcomed and applauded. We must look to the restructuring of state assets in a manner that improves their efficiency and releases funds that can be used to curtail our heavy debt burden while not adding to the ranks of the unemployed. We must support policies to open our economy to the inevitable winds of competition and support all sectors of the economy in developing a competitive orientation. The opening up of trading arrangements via GATT will have a substan- tial effect on our markets. Business needs to ensure that it is prepared for these changes; harsh winds must not become a tempest. It is in manufactured exports and the tourist-related services industries that our best hope of generating significant jobs lies.
During our recent trip to Davos, The United States and Cuba, we embarked upon a campaign to attract foreign investment. To sit back and watch while others attract capital such as this is very dangerous. We sent a clear message to the international community: "South Africa is open for business. South Africans are ready to do business."
During this year the soon-to-be-launched Gauteng Economic Development Agency (GEDA), in March 1996, will play a critical role in promoting Gauteng as the economic gateway to South and Southern Africa. Work on the final draft of the Province's economic policy will be completed by mid-year. This policy will identify the key growth sectors and opportunities, which will be marketed through the promotional activities of GEDA.
To fulfill our role as South Africa's economic generator, for which we are so obviously suited, we must build networks and significantly improve upon the standards of service and production across the economy.Thrugh growing co-operation and partnerships between government, the business sector and labour, we will ensure that Gauteng is walking boldly down the growth path. Our unions have a critical role to play in this process. Their leadership must ensure that they come on board with us, and approach disputes in a constructive and responsible manner. If we are to stabilise the economy, we cannot be faced with the threat of wildcat strikes. It is also the responsibility of government to engage with the unions to ensure that we approach disputes in a constructive and respon- sible manner. What we believe is necessary in this regard is the building of a common understanding of the issues facing our country.
Union leadership must ensure that their members are well edu- cated and informed about the issues. Knowledge is power, and should not remain in the hands of a few people. The new Labour Relations Act has created a strong framework within which labour can define its role in the economy. The Minister of Labour, Tito Mboweni, must be congratulated for the successful introduction of the LRA into Parliament and the recent Green Paper governing conditions of em- ployment which will bring marginalised workers under the protection of the law for the first time.
This year should see further work on both external and internal development initiatives. The government precinct in Johannesburg has been launched and we believe will lead to a rejuvenation of the CBD. The Greater Johannesburg Metropolitan Council and the Gauteng Provincial Government have been working on an urban renewal strategy for the Johannesburg Inner City. A representative community forum and co-ordinated business sector, as represented by the Central Johannesburg Partnership, are also involved in this process. The aim of this project is to develop a common vision and strategy for the future development and growth of the CBD. This vision and strategy must be linked to the Baralink development project, in consultatio with he relevant national departments, in order to provide for the physical, social, economic and cultural integration of the CBD with the South. This will assist in integrating townships and cities, through linking Soweto to the urban economy. Movements towards addressing the imbalances between rich and poor will begin.
A vast spine of industrial, manufacturing, residential and general economic growth is mushrooming between Johannesburg and Pretoria. The two most important cities in Gauteng will steadily, if not rapidly, be linked in one immense metropolis. This sums up the economic vision of the Tale of Two Cities. Such development should not grow on its own, but should be consciously driven. With Roodepoort to the West and Germiston to the East, we have a vast developmental area, waiting to be exploited for the growth of the province and the nation. Northwards, in Midrand, one can see the fruits of our business interactions with Asia, in the form of large developments. To the South, in the Vaal area, we now have the R3 billion South Deep Mine in operation. This will assist the mining industry in Gauteng which has followed national trends in declining production outputs. This expanse from North to South and East to West is the axis of economic development in Gauteng, driven by manufacturing as well as heavy industry. We urge business people in this country to seize these opportunities and not to allow foreign investors to outwit us right on our doorstep.
Beyond Gauteng, the proposed Maputo corridor, if properly handled, has the potential to provide a new dimension to trade and transportation, while ensuring a co-ordinated approach between ourselves and our neighbours.
Job creation will be further facilitated by support to SMME's through the Local Services Centres that will become operative this year and the financing and training support that the Ntsika Empowerment Agency will offer. The viability of SMME's will also depend on the big players in the economy. e look forward to the anti-trust legislaion which we expect to be tabled by the Minister of Trade and Industry this year.
The potential of franchising, as a mechanism of both empowerment and job creation, has not yet been fully exploited. In the USA, 40% of retailing is undertaken through franchises, in South Africa the figure is only 6%.
With casinos coming on line and business and sport tourism expected to g row, we must aim to double the number of visitors to Gauteng this year. This shall require a coherent corporate image for the Province that will be common to tourism, trade and investment promotion. We cannot cease to reiterate the importance of developing a dynamic approach to tourism in Gauteng. The gains to be made from increasing numbers of foreign visitors cannot be underestimated. At present tourism only contributes 3% to GNP, compared to the world average of 6%. We need to find creative and proactive ways to generate that extra 3%. Through encouraging a more tourist friendly attitude, we will develop a reputation for welcoming people to our province.
The finalisation of the tourism policy for Gauteng and the establishment of the Gauteng Tourism Promotion Agency are priorities for the coming year, during which we will see UNCTAD holding its Plenary Conference in Midrand with the participation of hundreds of senior political and business leaders. This is the first major international organisation to be hosted here in Gauteng. The efforts of our national Departments of Foreign Affairs and Trade and Industry have been excellent in this regard.
Regarding the bid for the 1004 Olympic Games, we in Gauteng must position ourselves strategically to take full advantage of the opportunities that will open up to us. We must be prepared for this multi-million dollar investment and exploit it to the maximum. In all respects, Gauteng supports Cape Town and the city's Olympic Bid.
Agriculture, while a small percentage of our Gross Geographical Product (GGP), has the potential to create jobs. The process of encouraging small-scale, labour intensive agriculture has been started and will be intensified in the year ahead. There is great scope for development in this arena, even in a province which is almost exclusively urban.
These myriad initiatives will lead to jobs in the medium term. In the short term, it is essential that the informal sector is both regulated and empowered through a Provincial Businesses Act. The role of expanded public works rogrammes is also essential. This is a mechanism for productive public sector investment which will both develop infrastructure in areas of need and impart skills that will enable participants to play a meaningful role in the economy as sustainable growth is attained.
There is little doubt that there is an urgent need to direct public expenditure away from consumption spending towards more productive investment. The process of reorientating the budget to reflect this end will continue this year. But it is going to be a gradual process through a medium-term budgetary cycle that will identify needs on the ground, made decisions about prioritisation and ensure that state spending is focused on productive investment.
In meeting the socio-economic back-log, significant productive investment opportunities will present themselves. The President has emphasised the national commitment to improving the delivery of housing and in Gauteng we will strive to reflect broader initiative. The obstacles to delivery of houses are one by one being removed ans we are developing a plan which gets back to reality and builds on the most basic needs of the province. This involves looking at developing an allocation system which is fair, transparent, reflects the needs of the poor and provides a basis for the definiion of local government priorities. Any housing programme must develop within a framework which acknowledges the importance of providing security of tenure to those people living in informal settlements. This year should see this sector, not only provide significantly more shelter, but also job opportunities and other economic spin-offs. We must not be afraid to admit that the Botshabelo agreement has not worked. We are fully supportive of the national Minister's new housing policy and will be providing any assistance possible to ensure that it comes to fruition. Today we issue a challenge to all key players in this sector. Let us work together, with honesty and sincerity and see 1996 as the year in which thousands of people came to live in their own homes for the first time in their lives.
However, our history dictates that most expenditure will necessarily focus on health, education and welfare, As disposable income increases and becomes more equitably distributed, so such consumption spending will be able to decline.
In this present phase, however, it is essential that we continue to place these services on a sound footing as soon as possible so that they can soon be re-orientated to contribute directly to economic growth. Technical and skills oriented education that will prepare our citizens for life in a successful, technically advanced and service-oriented economy is but one example of this.
Overall, our line departments show a commitment to ensuring that the poor of this province are targeted ans assisted during 1996. This government will be able to assess its progress on the basis our success in uplifting our most destitute and marginalised communities. The Ministry of Welfare and Population Development will present their White Paper in the next few months which will include plans for the redirection of funds and services towards deprived areas. Community libraries and sporting facilities will be developed in areas most in need, with RDP funding being sought where appropriate. The Ministry of Health will continue efforts to delink primary health care services from hospital budgets and to build health services in marginalised areas. Land identification and rapid release programmes by the Ministry of Development Planning, Environment and Works, as well as the implementation of the Development Facilitation Act, will ensure that communities are given access to land on which to establish their homes. The Development Facilitation Act will fast track the process of implementation, promote integrated development and provide clear and upfront policy directions. The Gauteng Development Tribunal, set up in terms of the DFA, will be functional by mid-1996.
With regards to education, the Gauteng Youth College will open its doors this year offering students who have failed matric a new integrated education and training curriculum on a combination of distance and face-to-face modes of delivery. We have launched a massive programme, together with all stakeholders, which will provide access for 10 000 adult learners to Adult Basic Education and Training. We expect that our Gauteng Institute of Curriculum Development will be established during 1996. Policy working groups are making considerable progress in the fields of school transport, technical colleges, teacher colleges and early childhood development. The tasks of rationalising the college sector to more appropriately meet the human resource needs of the country is being taken forward. We have introduced, for the first time, a common system of advertising and filling posts in schools. All of this has been done in processes which have been inclusive of all stakeholder. The Gauteng Education and Training Forum has been a valuable partner, and district forums have been established in all districts. Nevertheless, the challenges in this sector are immense. Cuts in funding to early childhood educare need to be addressed as this sector is critical for the future growth and development of our children.
Creative means of using limited funds to educate increasing numbers of children must be employed. The crisis in our tertiary sector, which has been exemplified in the ongoing wrangle for control of Wits University, must be addressed. The role of our universities and technikons needs to be debated and clarified. We cannot accept predominantly white controlled institutions who continue to serve disproportionately large numbers of white students. On the other hand, our graduating students must be able t hold their head high, convinced that their qualifications can stand up to that of any foreign institution. There are no easy solutions.
Quite obviously, our allocation from central government resulting in service provision is being stretched to the limits. It is our view that if we are to perform the role of economic dynamo for the country and the sub-continent, we must have the financial resources to provide exemplary services and develop stat-of-the-art infrastructure and facilities. The solution to this conundrum lies in a larger proportional share of national revenue and the better management of our public utilities. We also need incentives to spend wisely. Greater co-operation between national government and the provinces must in a systematic way prioritise the utilisation of resources, in keeping with the four strategic priorities identifed in the President's opening address to Parliament, namely, education, health delivery, housing policy and implementation and land reform.
In this respect, the Treasury is embarking on management audits of selected, key government facilities with the intention of using these as blue-prints for the creation of cost-effective, efficient facilities that will deliver an adequate and appropriate service to those most in need.
In our quest for sustainable, higher growth this economy must not ignore the rights of consumers. To this end, we will this year create a Consumer Tribunal and sub-regional consumer offices with a public data base on company performance that will ensure an environment of impeccable ethics in both the private and public sectors. We also hope that 1996 will see the passage of the Consumer Affairs Bill through the Legislature.
The Ministries here in Gauteng have developed strategic working plans for 1996 to meet the needs of the province. In order to facilitate their work and to create overall efficiency and quality, Corporate Services, the Office of the Director General, the Office of the Premier and the Gauteng Prvincial Services Commission are all committed to seeing a movement towards an improved, people-friendly culture of service. Public spending will be strictly controlled, to cut down on wastage and corruption. Internal and external communications systems and processes will be improved.
Our vision of Gauteng as a growth-driven, ethical society will not be achieved this year unless the scourge of crime is removed from our lives. More resources, even greater community involvement, a stiffer criminal justice system and a tough stance on crime and its causes will, therefore, characterise all action of government this year. The focus on policing required a shift towards service to the public that in return will require the development of a new service ethos.
There is a great responsibility on national and provincial government to recognise the needs of our police services in their endeavours to stop crime. We have to provide them with the financial means to ensure that they are fully equipped with all the human and material resources needed to rid our province of crime. In the same vein, the Ministry is committed to working towards a zero based budget which will emphasise the need of the police services to effectively combat crime. Throughout our budgetary process, we need to analyse our needs carefully, prioritise and then budget accordingly. Fiscal discipline, combined with an acute understanding of Gauteng's socio-economic dynamics will ensure that those sectors in need of assistance are helped accordingly.
A major focus for 1996 will be investigating the feasibility and desireability of effective Local Authority Policing in Gauteng. Past experience has shown us that unless communities accept and respect the police and unless the police are able to convince the communities of their integrity and legitimacy, safety and security cannot be effectively maintained. New relationships of mutual trust and respect need to be established.
Careful attention will be paid to crimes against women and children (in particular, domestic violence, child abuse and rape). Even though crimes against women and children are far m ore common than car hijackings, and the resultant effects on society far more serious, very little attention is paid to these crimes by the media. Personnel trained to handle victims of such crimes with sensitivity, as well as active programmes aimed at their prevention, will attempt to make a serious impact on these crimes in 1996.
Corruption and police complicity in crimes will not be tolerated and must be dealt with severely. At the same time, it is hoped that through community policing forums continuing to grow in strength, such criminals will be identified and appropriately punished.
Our vision of Gauteng as a growth-driven, ethical society will not be achieved this year unless the scourge of crime is removed from our lives. More resources, even greater community involvement, a stiffer criminal justice system and a tough stance on crime and its causes will, therefore, characterise all action of government this year. The focus on policing required a shift towards service to the pubic tha in return will require the development of a new service ethos.
There is a great responsibility on national and provincial government to recognise the needs of our police services in their endeavours to stop crime. We have to provide them with the financial means to ensure that they are fully equipped with all the human and material resources needed to rid our province of crime. In the same vein, the Ministry is committed to working towards a zero based budget which will emphasise the need of the police services to effectively combat crime. Throughout our budgetary process, we need accordingly. Fiscal discipline, cunderstanding of Gauteng's socioonomic dynamics will ensure that those sectors in need of assistance are helped accordingly.
A major focus for 1996 will be investigating the feasibility and desireability of effective Local Authority Policing in Gauteng. Past experience has shown us that unless communities accept and respect the police and unless the police are able to convince the communities of their integrity and legitimacy, safety and security cannot be effectively maintained. New relationships of mutual trust and respect need to be established.
Careful attention will be paid to crimes against women and children (in particular, domestic violence, child abuse and rape). Even though crimes against women and children are far m ore common than car hijackings, and the resultant effects on society far more serious, very little attention is paid to these crimes by the media. Personnel trained to handle victims of such crimes with sensitivity, as well as active programmes aimed at their prevention, will attempt to make a serious impact on these crimes in 1996.
Corruption and police complicity in crimes will not be tolerated and must be dealt with severely. At the same time, it is hoped that through community policing forums continuing to grow in strength, such criminals will be identified and appropriately punished.
Serious and violent crime in Gauteng is an emotive and painful issue. In this context we reaffirm our commitment to the right of citizens to life. Whilst we are mindful of the emotional calls for the death penalty by some of our citizens against serious offenders, we nevertheless cannot align ourselves with such calls because they will not necessarily offer a solution. The State must be exemplary in a situation where historically life has become cheap. Barbarism cannot be reformed with barbarism. The painful cries of the people confronted with escalating serious crime must be heard and addressed via effective anti-crime legislation and police empowerment, community participation, judicial effectiveness an effctive penal punishment where offenders need to be seen to be serving their sentences for having wronged society.
The key issues facing this country and province centre around economic growth which is beneficial to society at large, particularly the poor, instead of merely the wealthy. Central to our economic growth strategy is the strategy of job creation, in manufacturing as well as in service industries. We repeat what we have said before. The success of this country, like other winning nations, is to reverse the job exporting nature of a mining economy, preoccupied as it is with the export of raw materials. Every value added in our country is a job created. Every job created is a family protected from the harsh winds of joblessness, landlessness, homelessness and the lack of credit.
IN CLOSING, WE REPEAT THE WORDS OF THE PRESIDENT:
There is a New Patriotism abroad in our land. Whatever the social stations they occupy, no matter how humble - South Africans are showing a determination to work together and make our country a winning nation. Our task is to harness these energies into a material force for growth and development, safety and security, nation-building and reconciliation."
Let us stress, for the purposes of our historical times, in a competitive world, the special need for economic patriotism on the part of domestic investors, beyond company dividends; on the part of union federations, beyond the shopfloor; on the part of communities, beyond demands for delivery, as well as on the part of government, towards greater transparency and accountability. All that sums up the principle of active patriotism, beyond the mere slogan of love ofcoutry, beyond the mere verbal support for our sporting personalities and teams. That is how the message of the President should be understood. Let us be the chorus of this call for hard work on the part of all South Africans. Together we can build a great province, a great nation.
Thank you, Honourable Speaker