MINISTER MTHEMBI-MAHANYELE'S SPEECH AT SETTLEMENTS

Issued by: Van der Walt & Associates

SPEECH GIVEN BY HOUSING MINISTER SANKIE MTHEMBI-MAHANYELAND REIGER PARK SETTLEMENTS

February 28, 1998

Chairperson, the Honourable MEC for Housing and Land Affairs, the Mayor, Honourable Councillors, Guests and members of the civil society. It gives me great pleasure to be a part of this memorable occasion to be a witness to the launch of two projects which have restored the human dignity of communities and bear testimony of the power of the human spirit.

We are launching these settlements as testimony of the triumph of the human spirit against adverse conditions. This, as a statement that files against convention, to show that ordinary people have the will to take charge of their own lives and that the government has intervened and created opportunities for them to join the mainstream of housing consumers.

By guaranteeing and fostering a freedom to get access to living spaces, safe and secure housing in socially and economically integrated communities, as one of the basic tenants of the department. Our detractors would have everyone believe that housing delivery has ground to ahalt, and that we are `cooking' delivery figures. On the contrary, government has proved that we are walking side-by-side and in tune with the needs of the people.

A variety of housing opportunities have been created to cope with the myriad demands of different communities. We have introduced:

These options have had a great impact in influencing and charting new trends in access to low cost housing. To date, a total of 496 000 units have been built or are under construction since 1994. At least 2m families have found shelter country wide and this is no idle boast. This has enhanced the quality of life or ordinary people.

The government has not reneged on its promises. Low cost and affordable housing is ccessible to the poorest of the poor. We have created an enabling environment and widened the framework to create opportunities for ordinary people to participate in the housing market. We have opened up avenues which have previously been closed and this is unique to South Africa.

Today, the residents of Phola and Eden Park are added to the ever-increasing list of ordinary people who have a roof over their heads. They are secure in the knowledge that their families will never be evicted or thrown out in the cold.

Ladies and gentlemen, comrades and compatriots, the government will continue to create space through its policies and their implementation to improve the quality of lives of ordinary people.

Phola has risen phoenix-like from the ashes of internecine violence to offer residents a glimmer of hope where there was none. Phola - means sit back and relax - has reclaimed its meaning. It is testimony of triumph of the human spirit! who would have thought that one day we would be witnessing this radical change? A complete turn about of people's living conditions steered by drive, determination and the will to succeed! A will to turn spears into plough shares, reconstructing living spaces and carving a peaceful and humane environment. This is an embodiment of the spirit of Masakhane- rebuilding communities and reconstituting families.

Phola Park is a product of joint collaboration between the Gauteng Provincial Housing Board and the Independent Development Trust (IDT). The IDT has contributed R24m and was responsible for monitoring services.

The total cost of the project is R75 813 750

We are aware that greedy and fly-by-night developers are putting a spanner in the government's efforts to make low cost housing affordable and secure. Mechanisms have been put in place to ensure that housing consumers are protected.

Originally, NEWCO started the project and the company was unable to develop the top structures to the community's satisfaction. The Provincial government took over in 1996 with ECODEV, a subsidiary of DENEL as developer providing top structures of between 30 and 36 square metres. Through this joint venture. ECODEV has managed to plough back some of its returns into the community by creating job opportunities and transferring skills. It has trained and hired residents who have in turn played a pivotal role in rebuilding and reconstructing Phola Park.

It is one of the first projects which benefited from tax exemption on low cost housing. The 14% VAT reverts to the beneficiary and this is added to and stretches the grant allocated to be able to eliver the top structure. A total of 650 top structures have been completed and delivery has been at the rate of 15 houses a day. 3 900 new stands have been developed to de-densify Phola Park proper. A total of 400 will be developed.

Phase 1 is a hostel site and will produce a residential site of 560 erven.

Phase 2 is a residential area in Tokoza extension, covering 1 060 erven

Phase 3 Greenfields, a residential area covering 2 275 erven

Phase 4 will develop Phola Park proper, a residential area covering 500 erven.

Eden Park, on the other hand, is an example of one of three high density pilot projects in the province and is a first of its kind to be launched. We take pride in showing that this represents a total of 150 units of the 300 earmarked for this project.

This project is funded through institutional subsidy and revolving credit created by the National department of Housing. This sum must be repaid by the local authorities and the institutional subsidies can sell the product after four years.

The government has let families and individuals have a place they could call home.

This government is sending a clear message to the homeless and all those who need affordable houses. It says, we are listening and we will continue to create housing opportunities that will build families and root out homelessness in our society. We are saying let us build together. Phambili neMasakhane Phambili!

Contact: Gege Kekana Cell: 083-457-6577 (012) 441879