STATEMENT ON THE BUDGET VOTE

Issued by: Department of Constitutional Development

MEDIA STATEMENT ON THE BUDGET VOTE OF THE MINISTER FOR PROVINCIAL AFFAIRS AND CONSTITUTIONAL DEVELOPMENT

4 June 1998

Today Thursday 4 June 1998, The Minister for Provincial Affairs and Constitutional Development, Valli Moosa delivered his budget vote in Parliament entitled "From theory to practice: Taking the values of our constitution into the next millenium". The Speech that covered wide ranging issues dealt with by the department over the last year also made a number of pronouncements regarding the future programme of the ministry and department. Summing up the character of the developments in the Minister said "It is indeed a marathon year full of challenge and inspiration for my ministry and department. Challenge as we are tasked by our President to insist on the paramouncy of transformation on the agenda of society and government. Inspiration - as we see how the majority of our people, while still living in squalor, disease and pain rise to the challenge and walk hand in hand with the government to create a better life for all."

The Minister's Speech Focused on: Local Government Transformation, responding to recent criticism on the White Paper, The debate on constitutional amendment, the fture of provinces and the role of traditional leaders.

Local Government

The major part of the speech was dedicated to the area of local government that has occupied a large chunk of the ministry's work over the last year. The focus was on the white paper recently launched and the pieces of legislation flowing from the policy direction of government. Critical of the fresh criticism leveled at the process to arrive at the white paper the minister said that the process has been acclaimed locally and internationally as being one of the must consultative, inclusive and thorough local government policy initiatives ever undertaken in this country...." or for that matter anywhere in the world". In his harshest criticism yet, to the detractors of the process and those who have branded it a farce, the minister said: "There are those particular persons and institutions associated with the old order, who claim that the process was not sufficiently consultative, simply because their anti transformation views are not reflected as policy. "The minister concluded by indicating that he is satisfied that the white Paper reflects the views of the majority of our people.

The following areas in regards to local government transformation were highlighted by the minister: The developmental role of local government, the demarcation bill, the new structures proposed in the white paper for municipalities. Municipal infrastructure and the critical issue of municipal finance.

On the demarcation bill the ministers indicated the bill, already serving before parliament will provide for the establishment of an independent demarcation authority," so as to ensure that the boundaries of local government are determined on the basis of a rational and objective criteria and not on political horse trading which was the case in the past". Declaring the municipal structures bill as" structures for the next millenium" the minister indicated that the bill contains several new and very innovative ideas for local government such as the executive mayor, a speaker of council, area committee for metropolitan areas and ward committees. These, he stated are aimed at ensuring decisive political leadership in local government on the one hand and increased accountability on the other.

The minister announced that the government, in view of the challenge in developing municipal infrastructure for the provision of municipal services, has established a Municipal Infrastructure Investment Unity. This unit is expected to give expert advice to local government on among others public private partnerships. The minister also congratulated the newly appointed chairperson of the board Dr. Banda and wished him well in what is expected to be a challenging job indeed.

There has been a lot of public concern and debate about the state of municipal finances. The minister spent some time explaining how the new system of allocation of funds to municipalities will work. he also announced that the equitable share will increase from 1 billion in this current financial year to 3 billion in the next year. Addressing the concerns raised about the collapse of municipal finances the minister said "The financial vulnerability of local government system needs our urgent and collective attention, I believe that this must be linked to national mobilization of capacity and technical assistance to make municipalities work in all a parts of the country."

Concluding his remarks on local government the minister acknowledged the role of SALGA and informed the house that government has allocated 5 Million rands for the continued operation of what he described as a "extremely valuable organization" to which he will look up to for an influence of national policy.

One of the most important aspects of the minister's portfolio is the critical issue of traditional affairs. The white paper process that will be embarked upon was highlighted. The minister declared, in clarifying government stance this issue that: "there is no reason for African Traditions to be regarded as being in conflict with the values of our democracy". He highlights the role of traditional leaders as: Acting as head of the traditional authority, presiding over customary courts, maintaining law and order, making recommendation on land allocation and also acting as symbol of unity in the community.

It was to be expected when the minister issued a word of caution: "This process will deal with complex and sensitive matters. We will all be well advised not to plunge head on and with undue haste towards postulating new policies on traditional affairs." The minister appealed to the house that this process needs to be approached with great care and circumspection and would therefore not want to pronounce on any hard and fast deadline.

Constitutional Matters

The minister opened with stern words for those who have been on the other end of the debate on the fear about ANC's two-thirds majority. he asserted that fears in this regard were really imaginary. "The values of the constitution are and embodiment of values of our resolution. These we shall protect with our lives if need be. It is for these values that President Mandela spent 27 years in prison while those who now claim to be champions of these values sat in the comfort of the Apartheid parliament."

The minister asserted that only the people are the ultimate guardians of the constitution. This he said indicates the value of constitutional education that was highlighted during this year's constitution week. He thanked role players during the campaign and singled out the Evangelical Alliance for taking part in the launch of the campaign in Soweto's Regina Mundi Church on the 26 April 1998.

Addressing the issue of amendment of the constitution the minister said that government was proud that since the certification of the constitution in December 1996 it has not been amended even once compared to the eight times on which the interim constitution has had to be amended.

Provincial Matters

The minister spoke in support for the retention of provincial system and was critical of those who made calls for the review of this system. He said that the provincial system is not just a compromise between those who argued for federalism and those who did not - it is an essential sphere of government without which decentralization would have been impossible.

He reminded members that none of the reasons for the creation of provinces have disappeared and that financial problems are hardly enough reason to do away with the system. "Financial difficulties faced by local government has never led anybody to conclude that there should be no local government in the country."

Nation Building

Addressing the issue of Nation building the Minister touched on the issues of Vulnerable communities, The issue of the Volkstaat and ended up with Masakhane. He stated that no one should feel a sense of discomfort because of their cultural identity as a particular tribe or color since they are still full and proud member of the South African Nation. The establishment of the section 185 Commission is aimed at promoting respect for the rights of cultural and linguistic communities and to promote and develop peace friendship humanity tolerance and national unity." The Minister repeated the President's call to political parties made during his budget speech in April to make proposals in this regard as soon as possible.

Concluding his address with reference to the Masakhane campaign the Minister said "We need to dissuade ourselves from believing that Masakhane is only about paying for service." He congratulated the winners of the Masakhane Awards, Middelburg and encouraged other communities and citizens to make Masakhane happen wherever they are.

Onkgopotse J.J Tabane PUBLIC RELATIONS OFFICER Ministry for Provincial Affairs and Constitutional Development 021 462 1441 and 082 465 6166