Issued by: North West Communication Service
2/10/96
The housing problems created by apartheid are many, varied and complex. The racially fragmented and inconsistent system of admini- stration and housing delivery made it difficult for the erstwhile government to introduce a coherent national housing policy.
It has created gross inequalities between and within races in terms of subsidies and housing delivery. Discrimination against rural areas with regard to allocation, systems of tenure and all the institutions co ntrolling housing has exarcebated the plight of disadvantaged groups such as black women, the youth, the unemployed, the disabled and the elderly. In the old dispensation the issue of housing was addressed in complete disregard for the needs of the people.
That the government has set a target of delivery l million houses during the first five years of democratic rule is evidence of its concern and enthusiasm to address this problem. It is also testimony to a strong political will to ensure that people are able to enjoy their constitutional right to adequate shelter within the limitations of the national resources at hand. Our determination at the provincial level is to deliver housing in a balanced manner to both urban and rural population of our province.
CONSTRAINTS HAMPERING DELIVERY - A SITUATION ANALYSIS
Chairperson, it is essential that we should first understand the problem if we are to address it effectively. The question that we have to address is, is there a housing problem in the rural areas of this and other provinces? Succinctly put, is there a lack of shelter in the rural areas?
There has been a general concern expressed about the applica- bility of the existing housing policy to the rural areas. The basic differences that exist between rural and urban areas presuppose that rural housing delivery requires a substantially different approach to the one applied to urban areas. Because of lack of information with regard to the scope of the problem, it would be inappropriate to attempts to define a definitive housing policy approach to rural areas.
Comparatively speaking in most urban areas basic services such as water, electricity, roads and others are available while the greatest need is for housing. The available capital subsidy pre- supposes market conditions and title to land, conditions which are lacking in rural areas. In this context, without any remedial policy formulations the intended delivery in rural areas is likely to be seriously constrained.
In addition to a single national housing policy administered through one national housing department, - different policy approach and different institutional structures are necessary. Some of the major differences which will impact significantly upon such a policy framework include the following: low density rural settlement pattern, communal land tenure, lack of institutional structures, lack of housing market, low levels of disposable income, lack of formal employment, mono-economies, migration and underdevelopment.
1. Most rural settlements or villages are characterized by a very low density settlement pattern. Generally, they cover large expanses of land which have not been subjected to any formal planning process as they do not fall within any municipal boundaries where a planning authority derives powers from a statute. As a result of prevailing settlement patterns, the cost of providing infrastructure will be exorbitant to the individual stand-holder. As they do not have sufficient bulk services available, these settlements will not be eligible for housing delivery under the existing policy framework.
2. In general, the system of tenure prevailing in rural areas of the province is not amenable to personal ownership, which is a prerequisite for subsidy in terms of the present policy. In most tribal areas, the tenure system is that of a communal nature, a factor that makes it difficult for the occupier to register the plot in his or her own name.
Perhaps the historical prejudice to communal tenure is under- standable. This type of tenure system is more secure than freehold land, which is more amenable to repossession. Land values are low as anybody who wishes to have access to land simply has to approach the traditional leader. Land is not zoned for any specific use, so in the planning sense no artificial shortage is created. Thus the opportunities for investment in land or in its development are unattractive to the market forces which are driven by a profit motive which in turn feeds upon the laws of supply and demand.
3. Very few typically rural areas have direct and easy access to credit. Informal structures such as burial societies, stokveIs, megodisano are of course wide spread. While this traditional source may have the potential of marshalling end-user finance, it is neither enough or sufficiently institutionalized to manage long-term financing. Access to private sector finance for housing and other forms of development is virtually impossible. Most of the money that circulates in these communities is a result of transfers from spouses and relatives who are employed urban areas.
4. Unlike in most urban areas, there is a serious shortage of formal governmental, private sector or commercial institutions available in rural areas. Most of those which are available tend to be non-governmental organizations mainly patronized by women. The dominant institutional structure there is the Chieftainship, which is itself under attack due to its undemocratic nature. In this context, rural areas are in constant danger of marginalization because they are less organized and therefore less vocal to access their fair share of the national economy.
The lack of economic opportunities also promotes the mobility of labour to areas where there are higher levels of alternative opportunities. The able bodied, economically active and the young invariably look forward to migrate to urban areas, although they may maintain loose links with their original home.
Chairperson, having painted a somewhat gloomy yet realistic picture of the rural areas in respect of opportunities for housing delivery, we need to proceed to formulate appropriate policies, that take into account the dynamics involved. This exercise will depend primarily upon the policy changes that we are prepared to effect. We have to find a way to facilitate the availability of and access to subsidies by rural communities who occupy communal land.
While there is acceptance that communally held land does not belong to the members of the communities concerned, policy must be sensitive to the rural reality that this form of tenure is generally, or at least as secure as freehold tenure. In addition, very few people in these areas do not have some form of shelter, even though it might be substandard. But households in rural areas generally provide their own housing to suit their taste. On this basis, a way must be found to make subsidies available to individuals who wish to start building and to those who wish to improve their existing houses.
We must also address the perception that the sale of property in tribal areas is a problem, a factor which makes it difficult to attract the banking sector to these areas. In our view, it is precisely this lack of availability of finance which constrains the growth of the real estate market in rural areas. While land itself may not be saleable, property in rural areas has always been a commodity which can be sold.
We do understand that banking is clearly a business which operates according to its own rules and procedures, and it is not our intention to interfere or to prescribe. The Government has developed a Record of Understanding with the Association of Mortgage Lenders, the so-called Botshabelo Accord, specifically to strike a balance between the overriding interests of banking institutions and the housing needs of disadvantaged communities. But this historical document appears to be just history - as far as rural areas are concerned.
While we do not think that banks should be dragged into certain areas of operation against their will, want to encourage banking institutions to be proactive and present practical solutions that reflect a genuine concern for the lack of development in rural areas. But there are some banks which have begun to take the initia- tive in this regard, and subscribe to our view that housing is not the Government's problem or a tribal problem, but society's problem.
Chairperson, it is necessary to bring traditional authorities on board if we want to seriously address the issue of security of tenure in areas under their jurisdiction. They must help to address the fears of the banking sector by being proactively involved in development, especially the provision of housing, water, electricity and other needs in their areas. Of critical importance, is the need to make land available for purposes of obtaining credit for housing.
Chairperson, this summit need to look into setting up an all- inclusive structure which would make it business to assist with the formulation of a rural housing policy framework. All stakeholders, rural inhabitants, their leaders, national, provincial and local government, parastatals, contractors, developers, bankers et al, should immediately get together under the leadership of the MEC for Local Government, Housing, Planning and Development, to formulate policy amendments to the proposed Housing Bill which would lead to the facilitation and delivery of housing in our rural areas.