Minister of Human Settlements Budget Speech & Responses by ANC, DA and IFP

Briefing

15 Jul 2014

Minister of Human Settlements, Ms Lindiwe  Sisulu, gave her Budget Vote Speech on the 15 July 2014

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Chairperson,
Honourable Members,
Invited guests,
Ladies and gentlemen.

It is good to be back in this portfolio. I would like to welcome members of the Portfolio Committee who might be new to the Human Settlements environment. I hope you will enjoy this space as much as we did when we were here. I can promise you that nothing is more fulfilling to the human heart than being able to contribute to the provision of a roof over a family that is destitute and has waited to be provided with the security and comfort that a house provides.

When I completed my term as Minister of Housing in 2009, between the MECs who I worked with and myself, we were convinced that we had presided over the golden era of housing, both in policy and delivery in our country. We believed we were at the age of discovery and the age of new thought. Now, when I find the essence of the policies we developed are at the heart of the National Development Plan (NDP), I am convinced they were correct in thinking that they presided over a golden era.

Sadly, I never had the opportunity to thank them for their hard work, their team effort and the extraordinary strides we all made. Chairperson, allow me therefore this opportunity to thank them for their hard work. So here is to the late Dumisani Makhaya, Gugile Nkwinti, Nomvula Mokonyane, Mike Mabuyakhulu, Marius Fransman, Maite Nkoane-Mashabane, Sta Vilakazi, Johannes Mahlangu, Richard Dyantyi and Zoe Kota-Fredericks, who was the Chairperson of the Portfolio Committee on Housing.

I could not have hoped for a more solid team. Together we launched the Comprehensive Housing Plan for the Development of Integrated Sustainable Human Settlements, or Breaking New Ground (BNG) as it is commonly known, that now forms the basis of the NDP and our work going forward. Together we launched a record of more than a million houses and happily launched many ministerial careers – look at where they are now. I take this opportunity now to thank them.

And I know we can count on their cooperation in the various fields that they are now responsible for, ie. Water and Sanitation, Rural Development & Land Reform, etc. The very essence of the concept of Human Settlements is integration in well located land. They helped to craft it and they are now called upon to sustain it.

I have, since my appointment had the opportunity to meet with our social partners and the entities that report to us in this environment to familiarise myself with our present situation. The backdrop given to me is too detailed for me to deal with here, but I believe Honourable Members have had the opportunity to have a preliminary briefing from the department.

We have all been on the campaign trail and we have seen the condition of our people. We have all promised, I am certain, to make life better for them. We are charged with that enormously difficult challenge to make things better for them and to do it double quick.

Thankfully we have very committed entities, very committed social partners such as South African Women in Construction (SAWIC), SDI and the banking industry, represented by the Banking Association of South Africa, some ardent supporters of our plans like the pale native, Max du Preez and a committed department, to name but a few.

And, thankfully for me, when I met with yourselves, the Portfolio Committee, for the first time, I found a very vivacious, energetic committee, ready to be part of the solution to the problem. I look forward to a very healthy relationship.

Briefly, this is what we have come to understand of the housing environment and where we are now. In research done by the South African Institute of Race Relations in 2012, out of all protests this country experienced over the last five years, 20% are attributed to protests over housing. We have also been informed that over a period of time we have lost a great deal of institutional memory within the entities of the department and the built environment.

We have also been informed that the delivery of houses has dropped drastically across all provinces, some reaching lows of a 30% drop in delivery. This, we have been informed, is due to a number of what my officials call “blockages in the pipeline”, whatever that means. We have also come to learn that the housing backlog is currently 2.3 million families and growing. We have come to understand as a fact for us in developing countries, that urbanisation is upon us and that we have to accept and prepare for it.

In his State of the Nation Address, the President confirmed that South Africa is urbanising at an alarming rate and that almost 63% of our population are now residing in towns and cities. This trend is expected to continue over the coming decade. We are ill-equipped to deal with this rate of urbanisation.

We have huge shortages of land for housing, which is a primary need for our purpose. We particularly require well located land close to work opportunities. These shortages are exacerbated by the fact that in some of our cities the land is not suitable for housing. In Ekurhuleni alone an extremely high percentage of land is dolomitic.

Added to this we have an annual flow of economic migrants into the country, obviously adding to the burden of homelessness in the urban space. In the last two months since I have been appointed as Minister, we have seen thousands of people evicted from their makeshift homes across the country, leading me to request a moratorium against evictions in such inclement weather.

In some cases this request fell on deaf ears and the weather patterns have continued to create the most untold misery on these people. This is but a snippet of the sad story of housing. Despite the fact that we have provided 3.7 million housing opportunities over the past twenty years, we are still facing a gloomy picture.

All this happens against an unfortunate culture of entitlement amongst our people. As I have indicated, our housing backlog currently stands at 2.3 million families and growing. These are very worrying statistics, especially worrying when put against the fact that it is generally known that some of the beneficiaries of the system have sold their houses and continue doing so. I myself was alarmed when looking through a housing waiting list, to see how many 18 year olds assume that government owes them a house.

It has also become quite clear that some of the protests over the past years have been created by the fact that we have made promises and created an expectation that we are not meeting fast enough. Parts of the protests have been against what is perceived as corruption in the allocation of houses. We have investigated this matter of the waiting lists and have found that there is no credible data list against which a municipality can verify the waiting list and make appropriate allocations.

What this means is that the creation of a credible data base of those legitimately waiting for a house is of vital importance. This leads us to two pivotal issues. The first is a technical one that there is an urgent need for a credible data base, linked to the population register and voters’ roll, to enable us to verify the validity of an application for a house. The Municipality will use this data base in the allocation of houses.

This will protect the integrity of the data base and the system. It will also protect councillors who are often accused of corruption in the allocation of houses, as citizens will be able to check their own details and place on the waiting list. It will also break down the concept of the backlog. How did we arrive at a figure of 2.3 million families and who are the people making up the backlog? How many 18 year olds are on the waiting list? Will the State in perpetuity be required to give free houses? How many of these 2.3 million have sold their houses and are back on the list? This will help us understand the scale and nature of our problem.

From this we would need to move to the second vital matter, the huge vacuum we have around our policy. As I indicated earlier, the NDP is premised on the Comprehensive Housing Plan for Integrated, Sustainable Human Settlements, approved by Cabinet in 2004 and otherwise known as the BNG, whose main thrust was the creation of decent settlements, while making sure these are integrated settlements to reverse apartheid spatial planning.

To deal with this urgent policy vacuum that has existed for the past few years, we will put together a Green Paper based on the BNG, as augmented and amended by the NDP, submit this for public comment and finally create legislation on the concept of integrated human settlements. We will crystallise the definition of indigence and the basis for qualifying for a free government house.

Another worrying challenge is that we have lost part of our natural allies in the delivery of housing, well almost. This is in reference to the Banking Association of South Africa and a number of other stakeholders. It is our intention to ensure we revitalise the support of our important stakeholders like BASA and every stakeholder that is concerned about the plight of the poor and are part of our delivery chain.

This means that nothing short of a total mobilisation of society around the issue of the provision of housing for the poor will solve the problems we confront in the short term. But, over and above that, perhaps nothing short of some kind of Marshall Plan will see us survive this challenge. This is because, above all that, the very concept of Integrated Human Settlements means a concerted, deliberate, legally supported drive to change the spatial patterns of Apartheid and create a truly united country from our disparate past.

For this to succeed we need both the support of the whole of society and the intervention of the State. We need to educate South Africans that while they live apart, Apartheid lives on. Our developmental state has a responsibility to intervene decisively to ensure that we remove any footprint of segregation, as we house the poor and grow our cities, conscious of the fact that land is a limited resource.

After all the discussions I have had with MinMec, the Portfolio Committee, the senior management of the department and the entities reporting to me, briefly sketching out the rough picture I have given you, we are confident that we understand what needs to be done and I will now indicate what we will do in the next 100 days, what we will to do in the next 12 months and what we would have done at the end of this government’s term of office.

What do we commit ourselves to do in the next 100 days:

Number one: The President has created an Inter-Ministerial Committee on the revitalisation of mining towns, for which we have a major responsibility. In this context it is important to add that we have interacted with the mining sector in the past. We have found that, unless we plan for secondary industry and related infrastructure, we would be unable to attract the necessary investment capital into mining towns for continued economic activity after the last ore has been mined.

Through the IMC on the Revitalisation of Mining Towns we will meet with the Chamber of Mines, the Banking Sector and the provinces where these towns are, to put together a plan on how we are going to tackle this enormous challenge.

Number two: is the issue of title deeds. Firstly we will prioritise the issuing of title deeds for pre-1994 stock. This is important because these are otherwise dead assets. Without the title deeds the owners are unable to revitalise the old townships, which are in a very sad state of decay. The Estate Agency Affairs Board has been tasked to prioritise this and submit a report by 30 September 2014. Secondly, for the post-1994 stock, again we have dead assets lying in the Deeds Office.

The department will collaborate with the Department of Land Reform and the Office of the Land Commission and create a dedicated unit dealing with fast-tracking the issuing of title deeds of this post-1994 stock. Our people have a right to their title deeds and the fact that they do not have them is a sad indictment, because this is supposed to be an entry into the economy for the poor.

Number three: In 2004 we established the N2-Gateway Project as a national MinMec project. It was funded by all 9 provinces as a jointly owned project. This was done in order that we can test the State’s ability to build on a large scale and that we may all learn from it what can be done right and also from our mistakes. MinMec took a decision on 4 July 2014 that the project will revert to being a national MinMec project.

It shall remain a national project, funded by all nine provinces. The responsibility of the allocation of units is that of the Western Cape Province, as is the provision of infrastructure and the maintenance of the project. Our aim is to ensure that we can, in the shortest time possible, complete phase I, so that all who drive to the airport on the N2 can attest to the success we had on the N2 Gateway.

Number four: MinMec have decided that we will now embark on mega projects, because in this way the economies of scale will be in our favour. In these mega projects there will be a collaboration of all three spheres of government. Local government will ultimately inherit the projects once completed and therefore the responsibility of the allocation of units and the provision of infrastructure and the maintenance of the project will be the responsibility of local government.

In line with our approach to mega projects that we are now taking, we would like to revitalise Cosmo City, another success story of integrated human settlements on a large scale.

This project will be revitalised on Mandela Day by cleaning up Cosmo City and rebranding it so that all know what a successful story we have and that it is worth replicating in every province. Furthermore, when we have the number of stakeholders determined to succeed, they do. This will also give us the opportunity to thank the stakeholders who took part, specifically the banking sector and Radio 702.

Number five: On the matter of a credible waiting list data base that I mentioned earlier, we will sign a Service Level Agreement with SITA and the Housing Database will be up and running within this period of 100 days.

Number six: An important component for success we have found in the past are our social partners. We will sign a Social Contract with the Banking Association of South Africa (BASA) to recommit to the Social Contract concluded in 2005. The Banks have been our most valued supporters and we would like to think that we are their most valued clients.

The entire housing portfolio of the country is in our hands and we hope they talk of us as a very valuable partner. We need to recommit to this mutual appreciation of society through this Social Contract. Their continued support of our programmes is essential, especially as we depend on them in our most urgent and newest project, which is employer assisted housing.

We thrived on the support of all stakeholders during our first stay here and we are determined to revive that support, because without it, the enormous delivery will not be possible.

Number seven: We will restructure the Human Settlements entities. The Housing Development Agency (HDA) will become a fully-fledged development agency, whose job is not only to acquire and prepare land, but to be developer and project manager to assist municipalities and any other sphere that might need support.

Number eight: As requested by the Estate Agency Affairs Board, we will explore the possibility to absorb it into the Department of Human Settlements rather than it existing as an independent entity. The Social Housing Regulatory Agency (SHRA) has been unable, for various reasons, to fulfil its mandate. We are therefore placing it under administration and similarly exploring the possibility to absorb it into the Department of Human Settlements. The Board of SHRA will retain its responsibility until the restructuring is complete.

Number nine: We will establish a Women and Youth in Construction Support Programme headed by a Deputy Director-General (DDG) in the National Department of Human Settlements to ensure that women and the youth are supported to be part of the construction boom. We expect provincial Departments to do the same. Together with the NHBRC we will established a Training Academy that will be focusing on professionalising Housing Practitioners and up-skilling women and youth. Currently we have 100 female students, sponsored by the NHBRC, studying at the University of Pretoria’s Gibs Business School.

In our discussions with the Estate Agencies Affairs Board (EAAB), they committed to train young, black candidate housing agents to revitalise the industry. The Academy established by the NHBRC will incorporate a training course on Estate Agents, property management and all other skills required for this sector.

A youth brigade will be created in each province and assigned to catalytic projects. We will celebrate Women’s month in August by building 1 956 houses in each province for women, by women. This will be led by SAWIC and done by the Youth brigade between August and December 2014.

We will also establish a dedicated Branch, headed by a DDG, to ensure that all 5 854 indigent military veterans receive houses in less than three years. We will work with the Department of Military Veterans to develop a programme to train our military veterans and ensure that they participate in the building of their houses.

Finally, we will resolve the thorny contestation between local and provincial spheres, namely that of the accreditation of municipalities, so that we have a commonality of understanding and are able to proceed, because the level of uncertainty that exists in this regard is very onerous on municipalities and burdensome on delivery.

This is what we commit to do in the next 100 days. In each case plans have been put in place and are advanced.

What do we commit ourselves to do in the next 12 months:

Number one: We will embark on and lay the basis for a Master Spatial Plan for Human Settlements so that we can direct all the necessary amenities to where human settlements are and we are able to plan ahead for the provision of the necessary infrastructure and amenities.

Number two: We will ensure that the Housing Database referred to above is enhanced in a manner that will enable the tracking of ownership history and be aligned with data in the custody of the IEC, SASSA and Home Affairs. We will also track information on who has benefitted, so that government can measure when it has met the needs of the people. The HDA will develop a register which tracks:

1. Subsidies that have been awarded
2. Developments that have commenced with subsidy grant funding
3. Land Acquisition in all provinces

This is necessary in order for us to crystallise definitions that determine our delivery, for example “indigent” and “waiting list”.

Number three: We will be reviewing our policies and legislation. Fortuitously, the policy of Breaking New Ground (BNG) forms the basis of the NDP, so we have the comfort that we were on the right track when this policy was confirmed by Cabinet in 2004. We now have to pay attention to matters raised by the NDP to ensure that our BNG policy is aligned to the NDP. This will be completed by March 2015.

Number four: Each province will launch an integrated human settlement Ministerial project that will deliver a minimum of 10 000 houses and 5 000 service stands over five years. This will include 20% rental units, 20% gap housing, 30% BNG houses, 10% social housing and 20% serviced sites for employer assisted housing. 

This is what we will have done at the end of this government’s term of office:

1. We will have delivered 1.5 million houses.

2. The President made it clear in his State of the Nation Address what part of our responsibilities are and that is the revitalisation of mining towns. We will have completed this project.

3. We will have completed the Master Spatial Plan for Human Settlements.

Derelict buildings are a safety and health hazard and prone to being hijacked. Once occupied, the responsibility on the municipalities is onerous. We will be looking into this matter and seeking legal advice on the possibility of expropriation where we find absentee landlords, so that these can be productively turned into rental stock after they have been refurbished. In reviewing the Prevention of Illegal Evictions from and Unlawful Occupation of Land Act, 1998 we will consider options to confiscate property from absentee landlords.

South Africa has over 1 million employees who earn between R1 500 and R10 000 per month, searching for houses costing between R100 000 and R250 000. The current backlog in the affordable market is estimated at 600 000 units. This we must attend to urgently and to this end we have resolved to revive the Social Contract that was signed by all stakeholders in 2005 and draw in employers into the contract. Government, being the biggest employer, will have to be a major player.

There is a great demand for rental accommodation in cities and centres of economic development for low income earners and students. Rental stock at reasonable rates, that which we call Social Housing, is the way we will find sustainable provision of affordable housing. South Africa also has a high level of young unemployed people who are looking for work.

We will have a round table discussion with representatives of all big employers and representatives of employees to discuss how big employers can leverage in our subsidised serviced sites to assist employees to own houses. We will further encourage employer assisted housing by making serviced sites available at reduced prices to employers who seek to assist their employees to purchase a serviced site to progressively build their houses.

We will appoint an audit company to audit some of the activities of some of the housing entities and the responsibility that the Department of Human Settlements should have had over them.

As you are aware, yesterday we returned 402 families to the site they originally occupied in Lwandle. I established an inquiry and we hope to learn from this what needs to be done about the vexing question of illegal occupants of land facing us on a daily basis, and as urbanisation grows, will increase. It is also very clear to us that we need to send a message to landowners to understand that the value of their land is an asset only for as long as it is protected and safe. By the time it has been invaded, it loses value almost immediately.

Understand that you need to protect your land in the best way you can. The law that we have is intended to protect the rights of people who established their homes and protect them in the same way as we protect the owners of private property. When removing occupiers from land due processes have to be followed.

The delivery of houses has dropped by 25% over the past five years and when asked for an explanation for this the officials of the department have given me explanations that range from blocked pipelines to financial arrangements and other matters. Whatever the reason a drop in housing delivery is very serious especially against a backdrop of increasing urbanisation and promises made.

Our job therefore will be to unblock those pipelines and rev the engine on high voltage. We will deliver not only on the one million we have promised in the manifesto of the ruling party but make up for the deficit of the last 5 years. All in all we are committing to 1.5 million housing opportunities in this 5 year period. That requires enormous effort and a doubling of the capacity of the instruments and vehicles we are using. It requires a mobilisation of all of society to be a partner in the building of their houses.

Everyone who has a family and is able has a moral responsibility to be part of providing a roof over the heads of their children. We appeal to you members of Parliament to help us build South Africa. We hope you will not only sit in your offices and find fault but be part of the solution. We would be only too keen to give you a plot of land so you can build with us and experience the challenges we experience so we can jointly unblock them. Much lies ahead for us we have promises to keep and miles to go before we sleep.

I thank you!

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Responses by ANC, DA and IFP

Human Settlement Budget Speech by Comrade Khoarai (ANC)

House, Chairperson

Honourable Minister and Deputy Minister

Family of Human Settlements, Entities of the Department

Members of Parliament

Comrades and Friends

Chairperson together moving South Africa forward the ANC supports the Budget Vote 31.

The South African constitution places an obligation on the State to provide access to adequate housing to its citizens. As the custodian of the housing sector the Department of Human Settlements has developed strategies, policies and programmes to ensure the progressive realisation of this right.

The departments strategic plan 2014-2019 was approved by cabinet in June 2014. This plan is informed by the ruling party elections manifesto, National Development Plan and Medium Term Strategic Plan. The departments delivery priorities are expected to deal with the period ahead to respond to this ANC election manifesto such as:

Ensure all South African citizens live in a decent and suitable human settlement.

Provide one million housing opportunities for qualifying households in urban and rural settlement over a five year period.

Accelerate the provision of Basic service and infrastructure in all existing informal settlements, just to mention a few.

Chairperson, in his state of nation address President Jacob Zuma highlighted the key strategic objectives of the Department of Human Settlements relating to human settlement.

Providing support to Moqhaka Municipality which is my Municipality, on eradication of Bucket System and open toilet challenges.

Minister also indicated that her department has been leading an inter-ministerial committee on sanitation (bucket eradication) comprising of Department of Water and Sanitation and Department of Cooperative Government and

Traditional Affairs. Minister indicated that there is a discussion held between Department of Human Settlements and newly formed Department of Water and Sanitation. This is to make sure that this function, as it relates to housing provided by government, remains with Department of Human Settlements and we support that. We are looking forward to the progressive discussion of this matter.

Minister the concern from the Portfolio Committee is that:

We see in many provinces the issue of informal settlements as a challenge. What is the plan of the department to deal with the community resistance in terms of moving people from informal settlements?

We hope that the department will come with solutions on these challenges.

Chairperson, let me talk of the 2014/2015 target plan for the Department which is the programme on bucket eradication. This bucket eradication programme grant was attained by slicing 5% of the grant over two years. This amounted to R899 177 000 for 2014/2015 and for 2015/2016 is amounted to R975 399 000 and is divided among all provinces. This is allocated for a two year period and will end in March 2016.

The Department reported that this backlog was at 280 000 buckets for the whole country and set a target of 47 325 bucket eradication for 2014/2015 financial year and 51 337 for 2015/2016 financial year. The Department also reports that it will undertake bucket eradication backlog by 2016. The Department entered into service level agreements for eradication of bucket toilets with Public entities to all provinces e.g.

Housing development agency - Western Cape

Bloom Water- Freestate

Sedibeng Water - Northern Cape

We look forward to these agreements to assist in this challenge of bucket eradication in all the provinces.

Chairperson, we look forward to the political overview of the Minister as the political head on the strategic direction to the Department of Human Settlements.

Minister indicated to the National Development Plan adopted by this government to be the basic work of the department.

It is important that the promises made to the people of the country through the ANC election Manifesto is fulfilled. Minister indicated that the Department would go back to the "Breaking New Ground" and make sure that they deliver 1.4 million houses in the next five years.

Minister also informed the Committee that according to 2007 statistics the Department has managed to deliver and provide houses to 3.6 million since 1994, while the backlog is still high at 2.3 million. Minster committed the Department to deliver 270 000 houses per year, that illustrate to 1.4 million houses in the next five years.

Minister also informed the Portfolio Committee that the table strategic plan 27 June 2014 was concluded before she joined Human Settlements and it is possible to be amended. We look forward to work with the Department hence the Minister has invited members for their inputs.

Chairperson let me highlight the provincial allocations.

The National Department of Human Settlements reported that:

The main purpose of the Human Settlement Development Grant, is to provide for the creation of sustainable human settlements.

Create Human Settlements that enable and improve quality of Household life. The outcome 8 programme was reported as to facilitate and provide access to basic infrastructure, top- structure and basic socio-economic amenities that contribute to the creation of sustainable human settlements. This will improve the rate of employment and skills development target for 2014/2015 that was to provide 58 064 sites and 126 352 units.

We welcome the initiatives of the Department and the Minister.

In conclusion

Chairperson as being guided by our revolutionary people`s document, Freedom Charter.

"There shall be houses security and comfort".

With the mandate that was given to the department by our people to implement and safe guard the gains of democracy.

Let us rally all the people of our country towards 2030 vision outlined in the National Development Plan.

The ANC supports the budget vote 31

THANK YOU!!!!!!

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Parliamentary Budget Vote Debate 31 - Human Settlements by Mr KP Sithole MP (ANC)
 
Honourable Chairperson,
 
The Department of Human Settlements still faces many challenges as it struggles towards delivering adequate and humane living standards for all South Africans.
 
The Inkatha Freedom Party understands that there will always be such challenges but what we cannot accept is the fact that the Department continues to drag its feet in addressing them.
 
We still find many of our hostels with living standards that would not even be fit for pigs. Our hostel dwellers live in the most abject of poverty and with very few having reasonable access to the most basic services of water and sanitation.
 
This government under the presidency of President Thabo Mbeki promised to eradicate the bucket system by 2007. President Jacob Zuma has now extended this deadline until 2016. 9 years longer is not a delay, it is a total failure to deliver and a failure by this government on their promises to the people of South Africa.
 
This department seeks to “create sustainable Human Settlements and improve the quality of household life” but then embarks on the ridiculous and sends ‘Sanitation’ to the Department of Water Affairs. This begs the question - Is the Department of Human Settlements intentionally or just negligently sabotaging itself? Sanitation and Settlements go hand-in-hand and should always form part of the same portfolio.
 
Backyard dwellers and dwellers in our informal settlements, particularly the people currently living in Ward 24 Wintervelt, Ward 40 Mamelodi, Ward 8 Makaunyane, Ward 103 Dark City, Ward 101 Ezithobeni and Ward 105 Sokhulumi, continue to live in the most cramped and terrible conditions with little or no access to basic sanitation and other services. What is the Departments doing to alleviate their suffering?
 
We also note the following informal settlement ‘hotpots’ in KZN, namely, Malukazi at Umlazi, and Kenneth Road. We urge departmental intervention to move these people from the above hotspots to the new development in Cornobia.
 
The RDP housing build projects continue to be sub-standard which then necessitates additional departmental spending in the form of rectification and re-rectification of structures. This is nothing less than criminal. Contracts for friends and comrades must end. Contractors must be held to account on sub-standard service delivery and not rewarded through additional contracts.
 
The Inkatha Freedom Party urges the Minister to take on the plight of our most vulnerable, to not stand for ‘trickle-feeding’ of service delivery in this department, to not tolerate departmental budget under-spending and to fight for sanitation to be a part of this department’s portfolio and not allow it to be ceded to the portfolio of Water Affairs, where it will surely fail.
 
The Inkatha Freedom Party supports the budget vote.
 
I thank you.

Parliament must amend Section 10A of the Housing Act Makashule Gana , Shadow Minister of Human Settlements (DA)

Chairperson,

Honourable Minister and Deputy Minister,

Honourable members,

Fellow South Africans,

The German poet Johann Wolfgang von Goethe wrote “Knowing is not enough, we must apply. Willing is not enough, we must do.” As we enter the third decade of our democracy we must ask ourselves if the intentions of the department have been followed by tangible actions.

There is no doubt that from a policy drafting stage we are coming up with good proposals, but we are failing to implement what we consider to be our will. 

There have been great policies drafted for the department, from the Breaking New Ground to the National Development Plan. As the DA we agree with the provisions as outlined in the NDP for inclusive Human Settlements.

We agree that we must not re-enforce apartheid geography when it comes to human settlements and that we must build an active citizenship and not a dependent inactive citizenry. 

Von Goethe offers us another piece of wisdom “If you treat an individual as he is, he will remain how he is. But if you treat him as if he were what he ought to be and could be, he will become what he ought to be and could be”. 

If we want recipients of housing opportunities to be active citizens, we should treat them as such. We must involve them early on before a house is built or a service is installed. As things stand, recipients have no choice on what kind of house they want.

We must get out of the mindset of building units of the same type, shape and form to consulting recipients before units are built.

The department is good at talking about removing barriers to housing trade but the actions do not follow the intent. Up to this day we have a provision in the housing act that prohibits recipients of subsidy housing from selling the house for a period of eight years. Even the BNG warned in 2004 that the 8 years period is a massive barrier to housing trade and proposed that the years be reduced to 5. 

As the DA we believe that the number of years should in fact be two.

We do not believe that the circumstances that necessitated the 8 or 5 year restrictions still persist today. It is time we take bold action and amend section 10A of the housing act and allow recipients of subsidy housing to sell their houses after two years to whoever they wish to sell to.

Another barrier to housing trade has been the issuing of title deeds. We have many recipients of subsidy housing who do not have title deeds to their houses, some as far back as 10 years. Some of the recipients have passed on. 

When it comes to subsidy housing, there should be no “Happy Letter” without a title deed; the title deed must be the happy letter.

If we are to unlock the potential of this market, every subsidy house recipient must be given a title deed. Title deeds are not just a piece of paper; they are a powerful tool that gives holders economic opportunities to use as surety for loans. These loans can be used to ensure children get a university education. 

For example, Amukelani, from Nkowankowa, was able to go to University because her parents had a title deed as surety when applying for a study loan after NSFAS rejected her. 

Other municipalities must follow the example of Cape Town of giving title deeds to long term tenants of council properties such as hostels to give them ownership of property.

We need to empower our people economically through title deeds.

Even with the good policy proposals as outlined in the BNG and NDP documents, we continue to see subsidy housing being built in areas far away from the economic centers. This is one area where intent and action are apart from each other.

Honourable members, if we are to change the apartheid geography and help with urban densification we must make state land and land belonging to parastatals available. Why this is still a problem, puzzles me.

In 2004 when the BNG policy was adopted we had identified that the quality of houses being built for the subsidy market is low, primarily because tenders were awarded to people who knew little about construction.

To this day we continue to award tenders to politically connected individuals, whose sole purpose is to line their pockets rather than building quality houses for our people. 

Over the last 3 years we have spent over 2,5 billion rand fixing the work of these scrupulous tenderpreneurs. These are the billions that should have gone to build over 25 thousands housing units or over 100 thousand sites being serviced. 

Honourable minister, knowing about the lessons we learned in the last 20 years is not enough, we must apply them.

Even in this very same budget we will spend close to a billion rand fixing the shoddy work of some contractors. Up to this day I don’t know of any contractor that has paid back the money that they defrauded the people of this country.

Honourable members, in the delivery of housing the department should not only be chasing quantity but we must ensure that the housing opportunities we deliver are of great quality.

The National Home Builders Regulation Council and Municipalities must get involved early on in the projects to ensure that quality housing units are delivered. 

We can’t continue flushing cash down the drain or should I say the pockets of corrupt contractors. 

Honourable members, whilst the budget of the department has increased over the years, the increase in the budget are not aligned to the delivery on the ground. The numbers of housing opportunities are decreasing year after year but the budget is increasing. One of the important things we must deal with is the corruption with regard to the waiting lists. We must make the lists publicly available so that each one knows where they are. 

We can’t continue having houses staying empty for over 5 years like those in Meadowlands and Dube because there are fights about who are the recipients.

Honourable minister, as I stated there are good proposals contained in the NDP document, what we want to see is the implementation. The time of stating our intentions is over, let’s act. As von Goethe said “Willing is not enough, we must do”

Ndza khensa 

Minister Sisulu under commits to deliver houses Tarnia Baker (DA)

Madam Chairperson, as per the 2014 Strategic plan, the mandate of the Department of Human Settlements  is to determine, finance, promote, co-ordinate, communicate and monitor the implementation of housing policy and human settlements.

In ideal circumstances, an excellent mandate to work towards, but given the previous track record of this department, it is an ambitious mandate at best. 

This is a department which has been plagued by under-performance, coupled with poor monitoring systems, as is clearly evident in the state of the country’s housing sector. This is especially with regards to the appalling conditions that the poorest members of our society are subjected to. 

According to 2013 statistics contained in the department’s current strategic plan, there is still a huge backlog of 2,3million houses. 

The Minister has committed to building 270 000 houses per year which is approximately 1,4million houses over the next five years. Now this roughly equates to only about 50% of the backlog. 

My question to you Honourable Minister, is what about the other 1million+ houses? What “ story” do we tell the millions of people who in five years’ time will still not be living in decent conditions in suitable human settlements, as per the delivery priorities that this department is expected to deliver?

1,8 Million  South Africans still live in approximately 2500 informal settlements. 

Honourable members,

Tightening of policies to regulate illegal land and building invasions needs to be fast-tracked, so as to avoid further violent evictions of residents, as we witnessed just last week in Zandspruit in Gauteng, where the Red Ants demolished over 40 homes in the middle of winter. 

It was the coldest spell to hit South Africa this year, as the violent protests ensued. 

I’m sure the honourable minister has a plan to get personally involved in assisting these destitute families to get re-established on suitable premises, as she has recently undertaken in the Western Cape. Especially the Gogo we saw with the baby on her back trying to find her belongings in the rubble.

A brief look at housing delivery across the provinces paints a very bleak picture.

In the Eastern Cape delivery has dropped by 12,1%, 15,7% in the Free State, 11,9% in KZN, 27% in Mpumalanga and a staggering 31% in Gauteng. 

This is in stark contrast to the Western Cape, where houses are built, despite this being the province with the highest influx of people from other provinces.

South Africans are all looking for a better life and better opportunities in a province where the provincial government is taking positive steps to root out corruption with regards to housing waiting lists and back-room deals which often result in public housing going only to those with the right political connections and contracts going to the politically connected.

Madam Chair, I furthermore share the Statistician- General and the Minister’s concerns that houses are still being built according to apartheid spatial patterns. 

Now, we have to wonder how on earth this is still possible, given that we have just celebrated 20 years of democracy as a country. 

The fact that the ANC government has failed to address such a crucial aspect of development smacks of ambiguity.

I urge the Minister to address this issue urgently, ensuring that proper residential programmes are planned and implemented where the inclusion of social amenities, transport, education and employment opportunities are the over-arching determining factors.

All this can be achieved and a better life for all ensured if the Minister and her department are committed to ensuring that allocated budgets are productively spent, oversight of all entities is efficiently carried out, title deeds are issued to the rightful property owners, vacant posts are filled and contractors are held to account. 

Is this a tall order Madam Minister; or an achievable mandate? Only time will tell. 

I thank you.

Action must be taken to eradicate the bucket system Tandeka Gqada, Shadow Deputy Minister of Human Settlements

Honourable Minister, Ms Lindiwe Sisulu 

Fellow Colleagues,

Honoured Guests,

Ladies and Gentlemen,

It gives me a great pleasure today to deliver my maiden address in the house and as a member of the Portfolio Committee on Human Settlements, which is very close to my heart. 

Honourable Minister and members of the Portfolio Committee, we as the Democratic Alliance are in support of the total eradication of the bucket system. 

The fact that the DA-led Western Cape accounts for only 0.4% of the nation’s bucket toilets bares testament to our unwavering commitment to bringing this unsanitary system to an end.

This system is inhumane and has, for years, stripped our communities of their basic dignity. 

The total extermination of this system is our foremost priority.

You, here today, should also share our frustration with past Ministers who have come and gone, while the bucket system remains.

Former Human Settlements Minister, Tokyo Sexwale, spoke about the abolition of this system in 2008, he said this system will have been done away with during his term in office, this did not happen.

Honourable Connie September, also accepted, that this system undermines the dignity of our communities and vowed to ensure its total eradication; unfortunately she also did not succeed.

This is a genuine problem Minister, and it affects South Africans in every corner of the country.

Poor sanitation in places like the Free State, Eastern Cape and Northern Cape where there are thousands of bucket toilets still in use. 

I would urge that under your leadership, this matter should receive top priority. 

Your Department must work together with the Department of Water and Sanitation, and urgently coordinate efforts to make sure that this happens.

There still remains too much confusion as to who will be responsible for Sanitation, following the creation of the new portfolio on Water and Sanitation.

I trust that this division will be made clear – especially in the budgeting process.

It must specifically be made clear insofar as the use of the Rural Household Infrastructure Grant is concerned.

According to the Department of Human Settlement’s 2012/13 annual report, the Department failed to spend 39.6%, R135 million, of the Rural Households Infrastructure Grant (RHIG).

Whilst the primary purpose of the grant is to improve water and sanitation services to rural communities, since 2009 the grant has been grossly underspent.

Honourable Minister, grants like these plays a crucial role in addressing some of the numerous inequalities and human rights violations rural communities have had to endure due to apartheid disgraceful legacy.

This is simply unacceptable, given the current state of affairs of our system.

Let me remind the Portfolio Committee on how this money could have been used: 112 549 Portable Flush Toilets, 18 007 Ventilated Improved Pit Toilets, 15 889 Pour – Flush Toilets, 25 972 Full Flush Toilets.

Honourable Chairperson, there is hope for our people. Indeed, in the DA-led Western Cape, we are setting the trend.

According to Census Data, in the Western Cape, 99, 1% of households have access to piped water, and 96% have access to toilet facilities. Through and increase in the sanitation and sewage infrastructural budget, the amount of toilets have since tripled from, 10, 591 to 34, 225, ensuring access to 88% of its total population.

We can emulate this example in many other places in South Africa, from Nelson Mandela Bay to Egoli, from Ekhuruleni to Tshwane, if the people give the DA a chance in the 2016 local government elections.

I am confident that with this development, we will finally make real progress in  restoring the dignity our people deserve.

I thank you.


 

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