Human Settlements Performance Plans 2011/12: Department & accredited municipalities

Meeting report

Chairperson’s opening remarks
The Chairperson noted that the Urban Settlement Development Grant (USDG) was a new grant that was aimed at assisting the municipalities to change the style of apartheid-era development. It would also help to address service delivery challenges of bulk infrastructure and planning, for which resourcing had been a problem. The Committee hoped to hear about the state of readiness and preparedness from the metros  (metros) who would access the grant, whether they had the capacity to start implementation and whether they had research capacity.  Policies had to be synchronised on a provincial and a national level, to address the previous working in silos. This meeting would start the relationship-building between the Committee and the metros, to ensure that intergovernmental relations and cooperative governmental principles were observed.
 
Mr Neville Chainee, Chief Operations Officer, Department of Human Settlements, provided a brief departmental overview on the Built Environment Performance Plan (BEPP) and gave a summary on the signing of the Intergovernmental Relations Protocol between municipalities who would be receiving the Urban Settlements Development Grant (USDG) and the Department of Human Settlements (DHS or the Department).

In relation to the USDG, Mr Chainee referred to the Department's previous presentation to the Committee, which had indicated the process of assessment that municipalities would have to undergo to receive approval for the grant. There had been an agreement between the Department and National Treasury that one of the requirements for the grant would be that metros would submit a BEPP. This plan had to include the Municipal Spatial Development and Built Environment plans, the infrastructure implementation plans, the budgetary process and funding allocations, and set out the targets. It was therefore a comprehensive built environment plan that addressed capacity issues.

As part of the accreditation process, a Memorandum of Understanding (MOU) referred to as the Implementation Protocols by the Department, would be concluded between the various provinces and their respective metropolitan municipalities. This would ensure that the Level 2 Accreditation process was completed. The provinces had started to engage with the respective metros, and once the MOU was signed it would become the Implementation Protocol referred to by the Department.

In addition the metros would form part of the political implementation forum, together with the relevant extended MinMEC. This had been approved by the Implementation Forum to further the objectives of Government Outcome 8. The National Minister, on the basis of the delivery agreements,  would engage with the respective mayors and conclude service delivery agreements (SDAs). Each of the eight metros would have a SDA specific to its particular targets. Section 71 and Section 72 Reports would have to be submitted, and the Committee would receive progress reports on the USDG.

Mr Chainee then requested that the metros give an update on the status of accreditation. Although this deadline had been set for 30 June 2011, it may not be met, due to challenges some municipalities had encountered. Mr Chainee emphasised that the agreements had to be concluded by July 2011, and that this deadline could not be extended much further.

Discussion
The Chairperson noted that the Committee had expected the provincial departments also to be present, as there had to be synergy between them and the metropolitan municipalities. She also expressed her concern that some provinces were delaying signing the Protocol.

Mr A Steyn (DA) expressed his dissatisfaction that this was still at consultation stage, despite the budgetary process having been concluded some time ago. He thought that deliverables and targets should already have been agreed, given that this was already the first quarter of the national and provincial financial year, and the municipalities would commence their new financial year on 1 July 2011.

The Chairperson said that accountability questions would be dealt with in other forums.

City of Johannesburg briefing
Mr Herman Pienaar, Director: Development Planning and Facilitation, City of Johannesburg, said that it was important to consider the nature of the Sustainable Human Settlement Programme for Johannesburg, and how this fitted into the overall development strategy of the City, which meant that the approach was focused on urbanisation in general, not just on housing.

Johannesburg was unique in that its demographics showed high numbers of persons of working age, far exceeding the national average, which was indicative of the high immigration. The Total Development Index of the City confirmed that South Africa rated poorly on equality in terms of the Gini Coefficient. In terms of the Human Development index, Johannesburg was slightly above the national average for poverty and literacy. All these aspects had to be dealt with in a comprehensive approach.

Within the regional context, Johannesburg was still very much a divided city, with enclaves of poverty in close proximity to areas that were affluent, despite projects and programmes that were starting to change this. Mr Pienaar tabled a Deprivation Index (see attached presentation) which had been developed to classify communities in terms of access to social amenities, access to job opportunities and income. He noted the areas that were very deprived, pointing out that Soweto, which would have been classified as deprive ten years ago, had received substantial investment that created pockets of affluence and fewer areas of extreme deprivation, but there were still challenges. Development was still taking place on the edge of the urban area.

Mr Pienaar also tabled a transportation model, showing that Soweto was the focal point of the inner city but the regional economic power was located in the triangle formed by Tshwane, Johannesburg and Ekurhuleni. From an environmental point of view, the whole mining belt adjacent to the inner city, and near Lenasia, was constrained by under-mining and dolomitic conditions, meaning that there were limitations as to what could be built there, and a need to do  more costly and detailed studies.

The City was trying to gauge the growth parameters in the City in order to manage them better, and he referred to the third review that had recently been put up on the City’s website. Township development had taken place in Midrand and on the north western edge of the city. 180 informal settlements in the city, which were enclaves of poverty, were located here. This was clearly an unsustainable growth pattern. New townships applications had been submitted for these areas, but only a third had been approved because of the developmental constraints.
 
Conversely, the City had densified considerably on the central northern corridor, in line with the policy to move growth away from the edge towards the central area where there was transport and better services. Typical RDP housing had been provided, which was not sustainable human settlement, providing only a house but no other basic amenities. Although there was a different type of housing in the North West, this was equally unsustainable, being high-density townhouse development, with few schools and other facilities. Mr Pienaar emphasised that it was necessary to rethink how to deal with urbanisation. Diepsloot, where 4x4 houses were provided in 2000, had reverted to an informal settlement within a decade, with services unable to cope, and schools and social amenities being inadequate.  

Mr Pienaar drew attention to the residential building applications across the city (see presentation, for growth trends) noting that they were mostly add-ons to existing buildings, with 30% new buildings. Most retail growth was in the inner city and the nodes that were decentralised around residential areas. Office applications were mostly along the northern corridor and main arterials out of the city. The existing industrial belt remained as the most important industrial area of the city.

There was a major problem of congestion on the main collective and arterial roads, with backlogs in gravel areas in priority areas, and urgent attention was needed to stormwater backlogs. Only 13% of the 1.8 million tons of waste was recycled, and the City had no more capacity for landfill in the north. Major investment was required to address this problem, and the City was trying o ensure more recycling. Power was a problem in areas of greatest densification, but there were programmes to alleviate this, as well as water and sewage shortages.

Mr Pienaar outlined that in future, energy and fuel costs would rise, and dependence on fossil fuels would be a major issue. It was necessary to think of different ways to deal with water capture. Much of the current literature was suggesting that more than half of the world’s population would, in future, be living in informal settlements, so it was necessary to deal with pressures of urbanisation, and to address the economic divide. A City had to be able to compete globally, yet provide sustainable services that addressed the needs of citizens. The first generation of migrants were informal settlers, but solutions had to be found for the second generation, so that they could look after themselves and contribute to the urban economy.

The City of Johannesburg’s Spatial Development Framework was linked into a range of other strategies such as the Integrated Development Plan (IDP), the growth strategy of the City and policy parameters, including BEPP. Efficiency, accessibility and sustainability must be built into the system, and the City was trying to achieve human settlements that had access to public transport, a variety of housing typologies, economic opportunities, social facilities and open spaces. It also was looking at creating “walkable city areas” that were accessible. Densification of a one kilometre radius was suggested for existing transport facilities such as the Gautrain, Bus Rapid Transportation (BRT) and the traditional rail. The two highest priorities for capital investment were public transportation and the marginalised areas, including parts of Soweto, Orange Farm, Diepsloot and Ivory Park. The City’s development plans were linked to these priorities. The budget was negotiated with every entity and department in the City, and the capital investment strategy supported the priorities.

The City wanted to undertake R8 billion worth of projects, and planned those in the high-priority areas for 2011/12, including dedicated programmes for Orange Farm, Diepsloot, Ivory Park, the Soweto Transportation corridor and the inner city, all of which were based on five-year plans and included provision for clinics, social facilities and roads. The programmes were run by multi-disciplinary committees that met regularly and reported back. City Power would deal with the deficits in supply in the north western areas. Unfortunately the available capital would not allow for major new work in the City, as the capital budget of R3,8 billion could only just deal with necessary maintenance. It was hoped to build this to R5 billion per annum over the next few years. The City believed that the focus should be on the “future citizen”, not only residents but those using the City, which meant that transportation and economic networks must be linked with social networks.

The first phase of the BRT had been implemented and next year the link from the City to Sandton would be completed, whilst sustainability studies were ongoing to link Soweto and Orange Farm. Further possible future links were outlined. Economic development would continue along the well-established nodes of the northern corridor, an emerging node near Lanseria Airport and in the south, but this would require good highway and road access.

Areas of densification had to be linked to major transit development such as the BRT and rail stations, and the economic nodes and infilling had to take place in the gaps in these areas. A lot of the private sector development in the northern area required inclusionary housing, but the lack of legislation had so far made this difficult. The City was currently concentrating on key nodes, such as Jabulani, Bara and Kliptown, for major development in the city, with a different typology, looking at a transit-oriented perspective. City-owned land near Nancefield station would be used for high density development with different housing typologies. The opportunities in the North were set out, where up to 100 000 housing units could be built, but this required infrastructure investment of approximately R7 billion. Even if areas were not well located, the way they were developed and connected would make a huge difference. Therefore, major development should take place around the transportation system, with land issues also to be dealt with. The major subsidies from the Department of Transport for the BRT would have to continue.

Mr Pienaar then described the budget. R59 million of the USDG would go to social and community development projects and these projects were directly linked to the Deprivation Index. Over the next five years, the total housing programmes already promised would amount to R5,4 billion, which would basically take up the whole of the USDG Fund. Currently, there were 62% RDP housing, 24% rental and 14% bonded houses, but the City was aiming for 50% RDP, 25% rental and 25% bonded, by planning one rental property for every RDP house. This change would be seen in the third and fourth years, when the high density projects were introduced, and there was more leeway in the current commitments.

A regularisation and upgrading process was in place for the 189 informal settlements, which were categorised for different action. Most of the USDG allocations were around Soweto and the City was locked into projects under the Municipal Infrastructure Grant (MIG). Housing would receive about half the funding, with roads and water receiving large allocations. The USDG was also flexible enough to consider strategic land acquisition, over the medium to long term, and R250 million per annum was earmarked for this. The deliverables for land and total land requirements were tabled (see attached presentation). It was critical that land was banked in strategic locations or the market would just crowd out the poor. The necessary infrastructure would be costed. The City would also strengthen its asset management and undertake further feasibility studies.

Discussion
The Chairperson asked Mr Pienaar to clarify his statement that there was a lack of policies.

Mr Pienaar responded that he was referring to inclusionary housing policies, although the City of Johannesburg did have a policy that every private sector development must have a 20% inclusionary housing component. However, the developers were not in favour of this, and there was ineffective enforcement under the current legislation, although the City had applied to have a clause included in the Planning Bill that would empower municipalities to have an inclusionary policy and the power to enforce it.

Mr Steyn asked whether the contributions of participants in a debate with National Treasury had been taken into account. He was concerned that although Mr Pienaar had correctly identified the Economic Triangle, he thought that insufficient emphasis was being placed on extending and expanding that Triangle. While Mr Pienaar had identified new and emerging nodes, he was not sure whether enough was done to accelerate the development of these nodes. It was correct to increase the transport lines into the major economic nodes, but at some point it would be saturated and the Triangle would have to expand. The problems of bulk infrastructure had also not been adequately addressed. He noted the plans for the upgrade for sewage, but he was still concerned that infrastructure did not seem to be receiving the necessary priority.

Mr Steyn expressed concern that Mr Pienaar had not emphasised where housing could be delivered due to land availability. He questioned why there had been no mention of the Housing Development Agency (HDA), which was mandated to deal with availability of land.

Mr K Sithole (IFP) asked whether the City had the necessary capacity, noting that migration to Johannesburg was very high. He queried why 19 informal settlements were categorised, in the presentation, as 'not known'. He noted the high incidence of illegal occupation in the city, saying that RDP houses were being illegally occupied in Diepsloot, and wanted to know how the City would deal with this.

Mr M Mdakane (ANC) said that the issue he would raise cut across all metros. Malls had been built in townships, and had virtually destroyed small enterprises, with many having to close in Soweto. He said that surely the future citizens of Johannesburg should contribute to its economic development. The National Planning Commission (NPC) Report emphasised the need for the integration of communities, and this raised the bigger, and still prevalent problem of racism. Johannesburg was supposed to be a world class African city, and there should be tangible evidence of this. Problems with the sewage system and economic development had to be addressed.

Mr Mdakane added that Alexandra, the township in the middle of Johannesburg, was another problem, as parts of it had not improved since the 1980s. Social change should be accompanied by cultural change and this would encourage the development of the educational centres. He noted that Johannesburg had to become an integrated City. At the moment, poor people were still living far from their work – a point also made in the NPC Report. Johannesburg, as the largest city, and an important city regionally, should be taking the lead in integrating society. He noted the shortcomings in the policy on inclusionary development and found the resuscitation plan for the inner city lacking, with squatting problems not addressed. He further commented that some buildings, which posed risks and fire hazards, should have been demolished a long ago.

Mr Mdakane was also concerned about the RDP housing, noting that there had been significant wasting of land in the Orange farm area. If this was consolidated, it could become a real city. There was also a lack of small and medium enterprises in townships, except for liquor outlets. The City should have an economic plan that showed how jobs would be generated.

The Chairperson commented that RDP housing was a sensitive matter, and the areas where these were located were easily identifiable as places where poor people lived. She agreed with Mr Mdakane that the Department and municipalities must work to close the gaps. She was also concerned that the presentation had not addressed the need to build capacity, and suggested that the Development Bank of Southern Africa (DBSA) could assist with capacity building in municipalities, and had deployed staff to provinces. It would be crucial to have sufficient capacity to manage the UDSG, and the Housing Demand Database. The systems must also correlate to avoid duplication, and this must be borne in mind by all metros receiving the grant. Skills and accountability were other crucial issues.

The Chairperson said that the former Minister of Human Settlements had placed a moratorium on the selling of land to developers, and there needed to be a sense of commitment to development of settlements for the poor, with accurate asset registers and land audits being crucial.

Mr Mdakane requested information on how the housing cooperatives were functioning. He also questioned the unemployment statistics in Johannesburg.

Mr Pienaar noted that he had omitted some of the slides from his presentation. He emphasised that the City was locked into a development process, and reiterated that there would only be funding for newer projects in years three and four of the Five Year plan. The City was investigating all RDP projects, to see if a better mix could be included. He agreed that his presentation had not set out links with the provincial budget, but said that a number of meetings had been held to deal with this issue, but there had not, as yet, been an agreement to the satisfaction of the City. Negotiations were continuing.

In answer to questions on the economic triangle, he noted that there was a major push to expand economic links of the City, to areas linked by existing transportation lines, especially into Soweto and the emerging nodes. He had noted the comment about the shopping malls taking away business from small entrepreneurs, and said this would be taken into account in developments of the future, since smaller facilities would be promoted rather than major malls, and micro-business development would be promoted. The City already had a funding mechanism and small enterprise vehicle for this.

Mr Pienaar stated that bulk infrastructure was a major focus and that funding had been allocated to it, although this was not highlighted in the presentation, to ensure that there would not be development without the bulk infrastructure being in place. He was more concerned about the social infrastructure, saying that another R1.2 billion would be necessary, in addition to the R5.4 billion, for sustainable human settlements with all the necessary facilities in place.

Mr Pienaar explained that the informal settlements were classified as "unknown", because when this study was done, more information was needed on whether they should be upgraded or relocated.

Mr Pienaar confirmed that the integration of society and cultural change would be taken on board. The inner city housing situation was part of the housing programme, but a good supply of transitional housing was needed, and when people were moved out of buildings, they no longer qualified, which created problems.

Mr Pienaar also confirmed that the City already had links with DBSA, and was working with it on Diepsloot, but would also increase their interaction, especially in regard to capacity.

Mr Pienaar said that the City knew exactly what land it owned and where it was located, and had already identified strategically-located land for particular developments. However, it struggled to get information on other State-owned land that might be able to be combined.

The Chairperson said this indicated the need to strengthen the interaction with HDA, whose mandate was to identify and acquire land. The Portfolio Committee’s oversight reports could also assist. She stressed that decaying sewage plants must also be catered for in the plans.

Mr A Figlan (DA) asked if the municipality and the provinces were working together, especially on land.

Mr Walter Melato, Acting Director: Housing, City of Johannesburg, said the major challenge was the relationship with the provinces, which was critical when it came to the accreditation process and the USDG. There seemed to be a lack of willingness by the Provinces to align their programmes with the municipalities. Although the USDG would assist metros to drive their own development programmes, they ran the risk of the province then falling behind in delivering on the Human Development grant and provincial subsidies.

Mr Melato noted that the City was aware that 109 houses had been illegally occupied in Diepsloot, but this had been dealt with. In regard to the Housing Demand Database, Mr Melato said that, once the City had been accredited, it would engage with the province and ensure that the old backlogs were dealt with systematically and that there was no duplication.

Mr Melato noted, in response to questions about integration, that the City had adopted the stance that new developments should not be on the periphery of the city, but that City-owned land close to job opportunities would be used. Other spheres of government, and departments such as Department of Education and Department of Health, should also be consulted in the drawing of one integrated plan.

Mr Melato noted that the Inner City Property Scheme was intended to entice private investors to regenerate the inner City. The question was how to access grant funding for emergency facilities. The provinces had also committed themselves to programmes that were not necessarily in line with the focus of the City and its plans for the USDG. The City was pursuing integration.

Mr Steyn commented that Mr Pienaar had mentioned the capital budget of R2.8 billion, and asked what portion of this derived from the Grant, and what the City’s own contribution was.

This question was not answered.

eThekwini Metro Municipality briefing
Mr Michael Sutcliffe, City Manager, eThekwini Metro Municipality, said that this process was significant to the restructuring of the major cities in the world. Brazil had become a leading world economic power, which Mr Sutcliffe attributed to the fact that it had dealt with working-class concerns, such as housing and public transport and, although it had not used RDP housing, it had formalised informal settlements that were primarily next to rich areas.

In Durban, RDP-equivalent houses had been built in Westville, but the existing residents had objected, and this was likely to continue until new strategies were implemented. eThekwini had introduced a strategy whereby 20% of housing development had to make provision for working class people. He also noted that the social wage in South Africa was too high, and it was necessary to reduce it, since working class people were spending a quarter of their wages on public transport alone, because inefficient housing was located far from their workplaces. A more radical approach was needed. The challenge was to change apartheid cities to those that were representative. Housing and transport had to be sorted out in order for unemployment to be addressed and for the country to become economically productive.

Mr Sutcliffe stated that eThekwini had a fairly successful record in building houses, but was not catching up with the backlogs, and was still adding to the social wage costs of working people. There were still significant developmental pressures. eThekwini needed between R50 and R65 billion in total for infrastructural investment. Backlogs were growing, and this would intensify as climate change became a reality. The rural areas were becoming drier and there would be an influx into the major urban areas of the country. There was also migration from the rest of Southern Africa. In the short term, the economic growth would not address the backlog of 360,000. Mr Sutcliffe tabled the Basic Service Backlogs Summary Distribution (see attached presentation), and cautioned that if this situation continued at the present rate, it would take 44 years to address the housing backlog, nine years to address water challenges and 15 years to eradicate the backlog in sanitation.

The City faced difficult pressures, evidenced by the growth in informal settlements, which had recently increased because of the recession and the metro’s inability to increase its borrowing capacity. eThekwini had the largest capital projects of any city over the last ten years, and its projects continued even after the World Cup. Over the last three years its water programme had replaced all water systems and had created the necessary bulk infrastructure in the poorer parts of the city. In the following years, it would be spending R3 billion on electricity.
 
Mr Sutcliffe observed that housing considerations must go hand in hand with employment and creating jobs, so it was vital to have a productive economy. This had been emphasised by the President in the State of the Nation Address.

Mr Sutcliffe identified the four priorities that informed e-Thekwini’s developmental strategies. The Port was a major driver of the economy of eThekwini, so port expansion was planned, including the development of logistic nodes and a Back of Port Land Use Plan. Parts of the city had been identified, where working class people could get access to housing that was within walking or cycling distance, or accessible by quick public transport, to their work. Thirdly, eThekwini was adopting a more sustainable human settlements approach. Finally, it would prioritise effective asset and investment management.

The Metropolitan Logistics Platform was critical. This led from the port to CatoRidge and Pinetown, and further into Gauteng and Bulawayo (see attached presentation).The metro planned to focus on the economic node in the north around the airport, and the western node in places like Cato Ridge, the expansion of the port and the consolidation of the industrial areas in the city around Pinetown and New Germany.

Priority investment would take place in the former African township areas. Mr Sutcliffe  agreed with views expressed earlier that investment could be made into townships without necessarily building major malls. Most of the former townships had no opportunities for tertiary education for young people, and there was no productive investment there. The metro was beginning to build such infrastructure, and this was critical. Urban investment nodes had been identified and budgeted for.

Mr Sutcliffe emphasised that sustainable human settlements were not only about providing RDP housing, but providing interim services in informal settlements. His personal belief was that within some informal settlements the Brazilian option should be used. The metro had a capital monitoring system and a system that allowed it to evaluate where community facilities were needed, so that it was possible to achieve equity across the city. eThekwini had started building ablution blocks in informal settlements, which were managed by local co-operatives. This was one solution to the huge housing backlogs and the long period of time it would take to provide people with houses. The metro had a strategy around sanitation and electricity but had to go beyond that to provide community facilities, and then housing.

eThekwini also had to look carefully at asset and investment management. Mr Sutcliffe indicated the areas that required investment in bulk infrastructure, including Bridge City (see attached presentation) and noted that there had been negotiations with a private developer for the building of a shopping centre, and wanted to convert it to a public transport hub with rail, bus and taxi access. Areas in the City where development could occur immediately had been identified, with both some simple interventions and more significant investment.

Mr Sutcliffe noted that the city had to upscale its rate of delivery of housing units and not only RDP units. He noted that many people living in informal settlements did not qualify for RDP housing as they were working people with earnings higher than the limit, although they could not afford private sector housing. There was potential for patronage and fraud. Many people would sell their RDP houses because they were poor, and this exacerbated the problems. Because so much housing was unaffordable even for nurses and policemen made it essential to find other solutions.

The metro found that the current housing model was fiscally unsustainable, and the housing contract had to be renegotiated. Firstly, there were political risks, if more people ended up in settlements without facilities, or fell within the “free basic” category. Secondly, public transport costs were increasing, and this would become a major issue. A fully-subsidised approach would not address the need to create a healthy housing market especially for poor and working class people. Although Brazil was not the only model, it had been the most successful, over the past 15 years, in addressing its housing challenge.

eThekwini believed that there was much community willingness and capacity to co-finance housing. People would set aside money to invest in their own homes if they were given starter incentives, especially if they were in a place that made good economic sense, with public transport to get to work and schools. A developmental orientation was needed for housing. Rapid expansion of serviced land was necessary. This metro had little available land itself, so that State owned land, especially that currently owned by Transnet, Eskom, the South African National Defence Force (SANDF) and Department of Public Works (DPW) would have to be accessed. However, the state-owned entities were currently acting as if they were private sector real estate agents, charging market-related prices instead of book value. In many instances these entities would never use the land themselves.

eThekwini was reviewing its IDP, although it had always viewed housing, and not employment as the lead sector. This strategic review would reposition the metro, with job creation and reduction of the social wage at the centre, with integration and focus of other existing plans. The metro would focus on high level outcomes in the spatial context. Mr Sutcliffe commented that flexibility had to be built into the grant, as every city had its own unique dynamics and should be able to determine its own outcomes. Densification, urban land availability and tenure and urban regeneration were priorities for eThekwini,

It was also necessary to identify a lead sector to drive outcomes aligned to the IDP. The location of housing must be determined in line with existing or planned public transport, which, in turn, must depend on where job opportunities were, both currently and in the future. People should not live in areas where they could not walk, bicycle, or use cheap and rapid public transport to get to work.

eThekwini would be finalising its plans over the next six to eight months. The city had to have predictable, secure access to resources to implement the strategies. It would be using World Bank and USDG funding. However, it needed greater flexibility around the housing grant, and accreditation. The provincial legislature had supported full accreditation for eThekwini but the provincial Housing Department was resisting this. Mr Sutcliffe urged that eThekwini should get full accreditation as it had the capacity and this would allow the metro to have a clear definable strategy for the future.

Another area where there were blockages was land. Although the metro had a good working relationship with HDA, land must be dealt with in conjunction with the productive base of the economy and the social wage issue, and it had to be seen in the context of a bigger economic strategy.

Mr Sutcliffe noted the initiatives of the Deputy Minister in relation to funding for public transport and said the metro had already considered having rail subsidies under local level control. The key departments must still determine what needed to be done. He suggested that a single ticket for all modes of transport should be considered.

In his concluding remarks, Mr Sutcliffe drew attention to the fact that there was inadequate scale and control of resources, which was especially critical for sustainable public transport. He reiterated that eThekwini had not yet received accreditation, although the other metros had. He also raised the necessity of dealing with unfunded mandates such as libraries, clinics and administration of housing. He called for greater policy clarity on the built environment functions and for more strategic use of state-owned land. He suggested that a government land audit should be completed, and release of strategic land on transport routes should be done. He concurred with the Chairperson's perspective on capacity, and agreed with ongoing development of strategic and operational capacity in the metros, rather than using consultants.

Discussion
The Chairperson said that it was crucial to achieve sharing and synchronisation of resources. The metros, who had greater capacity, should add value and assist the smaller municipalities. She requested that Mr Chainee should engage with the municipalities and that the Project Management initiative that the Department was establishing could also assist.

Mr Steyn stated that whilst eThekwini had given an interesting presentation, much of the information had been presented before. Solutions were needed to the problems highlighted. He commented that a high percentage of those living in informal settlements did not qualify for the housing subsidy. He also said that it was a major problem that only 45% of current households paid for services, asking whether it was sustainable to speed up delivery and provide rental housing when so few were contributing to the metro’s income.

Mr Steyn was also concerned about eThekwini calling for accreditation, commenting that on a recent oversight visit, the Committee had noted that there was too little service delivery. The National Home-Builders Registration Council (NHBRC) had also said that it had found houses that had been built six months ago, which already required rectification, and this placed a further question mark on whether accreditation was justified.

Mr Steyn noted that public transport had been emphasised in both presentations. He was, however, concerned that housing might be built around future public transport routes, although other facilities might not be in place. He thought it was preferable to provide housing where there was already the likelihood of employment and good enough infrastructure to ensure that people could be employed in the area, without needing to use public transport to travel to work. Travelling took up time and costs. Housing needed to be linked not only to transport, but to other economic development.

Mr Steyn commented that it was important to find a balance between compliance and service delivery, as one could not happen without the other. Departments and provinces should look at the red tape and try to cut down on this, and speed up delivery.

Mr Steyn said he had the sense that there was still a silo attitude. The former Minister, Hon Lindiwe Sisulu, had introduced the Breaking New Ground (BNG) Policy in 2004, which was a precursor to sustainable human settlements, yet municipalities had done little to change their plans until now, despite the fact that all Members of Executive Councils were made aware of this at both MinMEC and Cluster meetings.  

Mr Steyn noted that departments had budgeted for unfunded mandates such as clinics, so the metros and departments must plan together. These items should not be reflected on the Human Settlement budget.

The Chairperson commented that if there was no strengthening of capacity for drawing IDPs, then there would continue to be lack of coordination. She said that DHS was an anchor department, and the basis for further development in areas, such as schooling. The Committee expected more from the metros in their next presentations, and more proof that they were committed to change. She agreed that the silo approach continued to be a problem, and it was necessary to work together to co-ordinate, integrate and synchronise.

Ms M Njobe (COPE) acknowledged that the South Africa’s problems with human settlements stemmed from the apartheid past. It was important to ensure that the working class did not spend so much of their earnings on transport, and to bring them closer to the economic hubs. She asked if there was in fact land available closer to the cities. If not, then other solutions were needed. All metros shared similar problems in having disadvantaged people living far away from the economic hub, and broader planning was needed throughout the whole country. She agreed with Mr Sutcliffe that a more radical approach was needed, in relation not only to human settlements but other problems, even to the extent of checking whether the Constitution was hindering or blocking advancement.

Ms Njobe agreed that there was little progress in addressing informal settlements, and noted also that some people living there probably were working, and had decent homes in the rural areas, despite complaining that government was not doing enough for them.  

Ms Njobe said that it was necessary to look again at the Constitution in relation to land. Some people maintained that the whole liberation struggle was concerned with land, and this was still critical. She asked why, 17 years after democracy, a land audit was still needed in order to establish what land was owned by government, and how much land was needed to settle people in suitable human settlements, with access to economic opportunities.

Ms Njobe noted that commercial farms were huge, whilst hundreds of individuals tended to be crowded in small urban spaces. It was necessary to find a way to deal with this, and although land redistribution was needed, it should not happen as it had in Zimbabwe. She agreed with previous comments that some way had to be found to get people to provide their own houses. This would be possible if people had jobs and the economy was developed, and this meant that their mindset must also change so that they did not see themselves dependent on government for housing.

Ms Njobe wondered if the development of rural areas would not relieve some of the pressures on the metros, pointing out that people moved to the cities but were still unable to find jobs.

The Chairperson told Mr Chainee that these discussions would form the basis for the Sustainable Human Settlements Summit. Broader forums were needed to resolve some of the issues.

The Chairperson also noted that hostels had not been mentioned, but risk and debt management in hostels also needed to be considered.

The Chairperson asked whether rental housing was affordable, and whether this was a requirement of the rental policy, although she did note that the Department could respond to that at another time.

Mr J Matshoba (ANC) asked how eThekwini managed its beneficiaries.

The Chairperson said that Mr Matshoba's question related to the Housing Demand Database. She stated that the Committee appreciated eThekwini's provision of toilets but they did not approve of Tin Town.

Mr Sutcliffe responded that the Tin Town houses were for emergencies.

The Chairperson said that although this may have been the intention, the Committee had discovered that some people had been living there for three to five years. New-style temporary relocation units should rather be used, as the zinc structures were very hot. However, the provision of ablution blocks was appreciated.

Mr Sutcliffe responded to the questions posed by the members. In regard to sharing of resources, eThekwini had established the Municipal Institute for Learning (MILE), an initiative within the municipality for training, networking, learning, and technical matters. It was working in partnership with the universities, technikons and other agencies, both locally and further afield.

Mr Sutcliffe responded, in regard to the rectification process, that it was necessary to exercise some caution, because many reports referred primarily to the old projects that had been run by the provincial government. The NHBRC reports on the city were generally excellent. Every housing development was likely to need some rectification.

Mr Sutcliffe noted Mr Steyn’s perception that this was “old news”, but said that in fact this was the first time that many of the proposals were being presented, and there was a new approach. eThekwini had now listed 16 matters that would make a difference at municipal level, and the solutions, not only for eThekwini but also other municipalities, were contained in that list. The first major hurdle was to increase the amount of serviced land. Regulatory reforms had to be developed to speed up land release, since even when government approved the release of land, this generally took up to a year, and Environmental Impact Studies (EIAs) also had to be done. At present, the metro was not permitted to buy land in advance, even from the private sector. He recommended that expropriation should be allowed, rather than limiting acquisition to willing buyer willing seller. State land must also be released, as there was no more municipal land.

Mr Sutcliffe suggested that a follow up meeting be held on the items he had listed to establish whether the Committee agreed, and also how to proceed further. He commented that the subsidy formula was a problem and also needed a fundamental review. Issues raised by other Metros could be added to the list for discussion.

Mr Sutcliffe said that perhaps his presentation had not been clear enough on public transport. This received high priority in relation to networks linking to the economic centres, where it was proposed that densification should occur. Some public transport was in uneconomic areas. However, where there were economic opportunities, development should take place. Mr Sutcliffe noted that eThekwini was not developing a BRT system, but was integrating rail, bus, taxi and bicycle routes.

Mr Sutcliffe noted that the BNG was only being implemented now because municipalities had not formerly been given instruments to implement the new policies, nor the resources.

Mr Sutcliffe agreed that IDPs were critical, and suggested the DHS should instruct other national and provincial departments that if their strategies were not integrated with the IDPs of their municipalities, then there would be consequences, such as disciplining of officials, or withholding of performance bonuses. National and provincial plans should not be imposed on municipalities, but should go through the approval process and be part of their IDPs. 

Mr Sutcliffe said eThekwini was taking a differentiated approach to rural development. There should not be one strategy for the whole country. Rural areas had to be dealt with rationally, in terms of areas of greater density, and there should be alternative arrangements for less dense areas. eThekwini was looking at three level of services with the same quality.

Mr Sutcliffe agreed with comments about the need to look at where the constraints emanated.

Mr Sutcliffe then turned to accreditation, pointing out that the Provincial government had approved the accreditation of eThekwini, but it had not in fact received full accreditation, as it should have. Full accreditation was needed for more systematic planning.

Mr Cougan Pather, Head of Housing, eThekwini, responded on the matter of the hostels. These were a great concern. The deficits were escalating on a daily basis. However, eThekwini was acting as agent for the Provincial administration. When eThekwini took over the hostels six months ago, the rentals were R11 per person, but there was an outcry when it tried to raise the rentals to R30. The major challenge was how to achieve sustainability.

Mr Pather confirmed that the tin houses were emergency units. The metro was not proud of the fact that they were necessary, nor of the conditions in which people were living. However, in reality, eThekwini metro was called upon to react to disasters and provide temporary emergency shelter. eThekwini was trying to align this with provincial assistance under the emergency structures programme, since there had been no provincial assistance in the past, and all structures were funded by the metro, despite the fact that this was not its responsibility. At national level, there should be a programme to address fire emergency, particularly since in 2010 three fires had destroyed over 3 000 shacks. However, failing that, the tin houses were erected. Those who had moved to the tin houses had been put on a beneficiary waiting list, but it had been discovered, when the time came for relocation, that two or three other families had also moved into the temporary structures.

Mr Pather stated, in terms of payment for services, that eThekwini was collecting 97% of its service charges from people who could pay. Low cost housing, where people qualified for free basic services, was, however, growing at a faster rate than other sectors, and this made it less likely that cross-subsidisation could occur. This could only be addressed by growing the economy. The current forms of housing were unsustainable.

Mr Mdakane noted that it took a lot of time to turn around a policy of government. Some of the 16 areas cited by Mr Sutcliffe would take years to change. However, they were valid points that required further discussion. He asked how the performance of the metro would be affected if these were not addressed.

Mr Sutcliffe responded that there were things that could be done, and accreditation should not be difficult. It was possible to deal with the land issues, getting effective integration of grants, and increasing flexibility.

The Chairperson stated that the Committee would engage further on these issues at a later stage.

The City of Cape Town briefing
Mr Wayne Muller, Director: Housing Finance and Leases, City of Cape Town, said that this City (CCT)  was awarded level 2 accreditation and since then had been working closely with the National Department of Human Settlements, the Accreditation Task Team, and with the provincial government. There were four different task teams. Processes had been put into place with the province for the interim period, and there were also handover arrangements. From the City's perspective, the accreditation process was moving ahead as expected.

Mr Muller noted that the USDG was a huge step forward but it would not solve everything overnight. It had given CCT greater flexibility in human settlement development. CCT had a population of 3,7 million people and a high in-migration rate, which placed pressure on services and infrastructure. 350 000 households were inadequately housed, and this figure was growing. There was a backlog of 400 000 households and there were 223 informal settlements in the City, with an informal settlement population of 900 000 people. CCT had spent R19,2 billion on infrastructure in the past five years and had done major interventions. This City had a clean audit for the seventh year running and had a healthy financial status, with the necessary systems all in place.

The current service status was that 90% of households received electricity, but one of the challenges was that CCT supplied some of the power and some was provided by Eskom. 99% of people had access to refuse removal, access to piped water, and access to toilets.

Mr Muller outlined the governance structures for the City, including corporate governance and structures dealing with risk and financial management, the growth options and the City's density patterns. He also indicated the policy linkages to the Provincial and National spheres of Government (see presentation).

CCT’s Spatial Development Goals and Principles included redressing the spatial imbalances of the past, being environmentally friendly and dealing with global warming. CCT also had to encourage local, national and international connectivity, and celebrate diversity in the living environment, cultures and lifestyle.

The development of a Growth Options Model for the City had to take into account the geographical limitations imposed by the sea and mountains. Options included the West Coast and Fisantekraal. There were hybrid options and a green environmental hybrid version. Three development options were presented (concepts 1, 2 and 3) which were based on the accommodation of 250,000 households north of the existing built city (see attached presentation). Similar to previous presenters, Mr Muller emphasised that finding land was a key issue, and this must be linked to what the City wanted to achieve.

CCT had considered the areas where there were serious bulk constraints, as indicated by the city's spatial development framework maps. All the areas it wanted to grow were in line with Outcome 8, which was focussed on providing integrated and sustainable human settlements. The status of the bulk infrastructure had been studied. Electricity infrastructure must be part of the USDG programme. Waste water treatment and services were also being addressed by CCT, in terms of risk areas and investment. There was also a long-term vision for an Integrated Public Transport Network.

CCT’s strategic plans included enhancing densities, providing community facilities in under-served areas and cross-sectoral commitments for education and sports facilities. CCT also wanted to encourage private sector involvement and the creation of work opportunities. CCT had been acquiring good tracts of land that it might use only in ten years time, but had gained the advantage of a good price, thus minimising the final future costs to communities and businesses. Environmental issues were important, as using the land intelligently would also lower costs.

Land in Cape Town was amongst the most expensive in the country. Mr Muller reiterated concerns that the State was demanding market-related prices for land that it would release. CCT had approached the HDA, and was hoping that it would deliver good strategic land, such as Youngsfield and Wingfield, where there was existing bulk infrastructure, transport and businesses. The large land owners must be known, if cities wanted to bring people nearer to the economic hubs. Mr Muller agreed that most municipalities no longer had land available of their own. CCT had committed all its own land over the next three years, and he pointed out that obtaining EIAs and development also took about three years to finalise.

Mr Muller said that it was necessary to move away from the mindset that all informal settlements should be eradicated, and accept that it would be more realistic to improve these settlements and bring them into the mainstream of the City, whilst also de-densifying them. This process was urgent, as poverty and urbanisation, the two main challenges, manifested themselves in homelessness, squalor, communicable diseases and crime.

Mr Muller stated that CCT was serious about urbanisation issues, and would address Outcome 8 through the BEPP and USDG initiatives. The City Manager had established a specific Urbanisation Department, which would address social issues, not just engineering matters. The Department had key outcomes such as poverty and slum reduction. He outlined the projects that were current, proposed or planned (see attached presentation for details).

Mr Muller said the USDG assisted in that it emphasised the role of metropolitan authorities. It provided a revised process for bulk infrastructure programmes. This was the first step. USDG would provide flexible housing, based on project costs. However, the challenges remained in acquiring suitable land and bulk infrastructure. There was a further problem in that CCT had a huge problem with backyard dwellers in its rental stock, who were being exploited by the current tenants. Some renters had to pay the City approximately R300 per month, yet were charging R900 to backyarders with no toilet facilities and electricity. One of the City Councillors was driving a programme to address this. CCT would use the USDG not only for new infrastructure, but also to expand existing infrastructure and to upgrade the old rental areas.

Mr Muller also said that CCT had to increase its City Rates base. He outlined the three year USDG budget (see attached presentation) and noted that in the 2011/12 financial year, CCT would commit R401 million to the USDG process.

Discussion
The Chairperson said that she wanted to convene a Social Development Cluster meeting, to include also the Departments of Land Reform and Rural Development and of Public Enterprises, to engage on land issues, including the costs of State land.

The Chairperson noted that although she understood that the project plans covered five years, she queried why the same projects also appeared in the CCT’s Five Year Strategic Plan. She queried why there was no real movement in delivery of housing units. Although USDG was a new grant, the Department had previously given a presentation on the Division of Revenue, in which the financial allocation given to CCT appeared to be lower.

The Chairperson raised the issue of the N2 Gateway Project, and urged that there must be better interaction and cooperation, as all stakeholders were working towards the same goal. There must also be good intergovernmental relations and cooperative governance.

The Chairperson noted that the issues raised about unfunded mandates and the building of libraries could be dealt with at other levels. The Social Development Cluster could also deal with this.

Mr A Figlan (DA) said that the HDA had mentioned that there was land available near the Ekwesi Hostel in Langa. He questioned what role the HDA and province were playing in the N2 Gateway Project. He also wanted clarity on gap houses next to the N2 Gateway, and flats in the central business district of Khayelitsha that had been standing empty for the past three years.

Mr Steyn said that the Committee had a meeting with the HDA on land acquisition and that the HDA had said it had engaged with the National Treasury on the issue of state owned land, the market related value and book value. The Committee had been quite adamant that State land should not be sold at market or book value, but instead there should be a book entry transferring it from one sphere of government to another. He hoped that the HDA had now received its answer.

Mr Steyn noted that there were two figures in Mr Muller's presentation, one for the category of inadequately housed and another for backlogs. He enquired if these two figures must be added together to reach the total backlogs. He further enquired if the percentages quoted in the 'Service Status' slide referred to percentage of households.

Mr Steyn noted Mr Muller’s assertion that the USDG would enable CCT to embark on a number of new initiatives but questioned whether this would not leave it worse off, financially speaking, and asked for clarity on this apparent contradiction.

Mr K Sithole (IFP) asked if the people in the informal settlements had been classified and whether they qualified for subsidies and houses.

The Chairperson said that the provinces had indicated, in their 2010/11 performance targets, that they were going to service 150 000 sites and she asked where those sites were. She was also interested in CCT’s backyard policy and commented that a national backyard policy was needed, to set up norms and standards.

Mr Muller responded that the Bardell project was a site-and-service initiative and top structure would be delivered later. He did not know where the 150 000 sites referred to by the Chairperson were, but said that the Western Cape province might have provided these outside of Cape Town.

Mr Muller said that he had forgotten to mention earlier that the DBSA had allocated two staff members to CCT to boost its capacity.

Mr Muller agreed that the matter of the unfunded mandates had to be dealt with at other platforms, as stated by the Chairperson.

Mr Muller said that the N2 Gap houses were completed by a private developer, as was the block in the CBD of Khayelitsha, and he could not comment on the status of those.

Mr Muller confirmed that the total backlogs amounted to 400 000.

Mr Pienaar commented on the apparent contradictions outlined by Mr Steyn. The USDG would provide greater flexibility but possibly less money. However, the advantage of the USDG lay in the metro’s ability then to develop on private land, the greater certainty and the linkages to Outcome 8. Change would not take place immediately, but there were immediate advantages. It was difficult to commit a Council’s budget to projects if the amount to be received was uncertain, and it was essential to have this certainty also for tendering.

CCT had an Anti-land Invasion Unit, and there were also roving container units in informal settlements where officials assisted people and kept count of the number of people in the settlement. It was difficult to know how many people qualified for subsidies; this could only be ascertained when they came to apply. The CCT was reviewing its policy on how it dealt with non-qualifiers and was looking at a plan that was within the provisions of the law.

Mr Hans Smit, Executive Director: Human Settlements, City of Cape Town, said that he would supply the information on the Ekwesi Hostel at a later stage. With regards to the N2 Gateway, he confirmed that the Province was the developer, and HDA was the implementor, although the CCT was involved in the Project Steering Committee. There was also a technical committee and an allocation committee, which was chaired by the City. One of the problems in the past had been that the Province and the City often competed for the same land, but there was a good working relationship between the two.

Mr Smit also confirmed that the 223 informal settlements had been classified. A detailed analysis on all the services was being done. The updated audit would be completed by August 2011.

Mr Smit commented on the subsidy arrangements, saying that CCT had an allocation policy that had been worked out with communities, and this had been approved in 2010. Backyarders and people from informal settlements were given preference, depending on where the project was. Steering committees were attached to projects, and these received community and professional input. Nobody was discriminated against in any way, in terms of housing, and those who had been longest on the waiting list were dealt with first. Allocations were made on the principles of transparency, equity and fairness.

Mr Smit noted that despite the Anti-land Invasion Unit, which tried to stop people from invading land, people were still coming into the City. Two strategies had been adopted by the City. The urbanisation approach was people-focussed and based on sustainable development, as in the Brazilian model. Communities had to be involved in creating jobs and social cohesion, and they had to start taking responsibility for their own areas.

Mr Smit admitted that backyarders did pose a major challenge, including risks in health and social problems. CCT would be doing a pilot intervention and going into communities. CCT might instigate split ownership and provide units with a toilet and a shower, to increase the dignity of backyarders and end their exploitation.

The Chairperson asked if the Department had a national urbanisation policy.

Mr Chainee said that it formed part of the National Spatial Development Framework.

Mr Chainee confirmed that State land fell under the ambit of the Department of Public Works and the Department of Rural Development and Land Reform. Development in line with the human settlements policy should come at no cost, according to the Delivery Agreement, and there had been considerable movement of land already on this basis. However, other land referred to was owned by the State Owned Enterprises, such as Denel, Transnet and Eskom, and they had to be financially accountable when they did release land. A report would be taken to Cabinet, with recommendations on how to deal with the challenges that had come to the fore.

Mr Chainee then answered the questions around the amounts to the CCT, and noted that the Province had gazetted an amount of R962 million to CCT. An agreement had to be reached between the City and Province on specific funding channels. However, this was an operational issue between the City and the province.

City of Tshwane briefing
Mr Amos Mboweni, Executive Director: Housing, City of Tshwane, said he would limit his comments to those of direct concern. The City of Tshwane had issued a mandate to ensure that everybody in Tshwane had an address, to enable that person to access services and open accounts. Tshwane was also working on a process whereby every person should have access to land, as this immediately restored their sense of dignity, and helped to prevent crime. Whenever the person acquired the necessary resources, the top structure could be built. This developed the responsibility, appreciation of ownership, and allowed people not to be dependent on government. This was a formalisation project that was going very well. People who currently had no property, no water and no toilets were now moving onto permanent and serviced plots. The City of Tshwane currently had backlogs of approximately 130 000, and there were 59 informal settlements in the city.

As with all other metros, land was a major issue in Tshwane. Land was sometimes not able to be developed, due to dolomitic soil conditions, flood plains and other environmentally sensitive conditions. Some people had to be removed from dolomitic land. At 6 200 square kilometres, Tshwane was one of the largest cities in South Africa, and the third largest in geographical area,  in the world.

Tshwane also experienced problems with the invasion of private land, and there had been negotiations to acquire and appropriate land. There was also tribal land involved. Tshwane was struggling to get power of attorney so that it could commence with some work. The national government had set a target of 400 000 serviced stands, whilst the provincial target was for 90 000 services and the City had set a target of 36 000 serviced stands in the next three years. Leadership had said that was not good enough and more had to be done. In all of the informal settlements Tshwane was providing rudimentary services. It had also identified geological constraints and some settlements had to be relocated.

The City of Tshwane had been divided into seven regions for administrative purposes. As with many other metros, many of the informal settlements were situated on the outskirts of the city, although some were situated in a ten kilometre radius of the city, such as Brazzaville and Mamelodi. The City had done some studies on the informal settlements with the province, and some settlements would be relocated to areas like Lady Selbourne. For each of the informal settlements there was a strategic plan that had been approved by Council, and this also identified whether the settlement was to be relocated or redeveloped in its current location.

Mr Mboweni indicated what would be done and where funds had been committed (see attached presentation). He noted that some development would take place in a mixed development format in line with the BNG principles and that the City was working collaboratively with province.

In the past the city had 65 informal settlements but the City had already formalised approximately 33 of those, although the matter had not necessarily reached the stage of proclamation, so that not all people were in possession of title deeds. Mr Mboweni felt strongly that this went to the heart of people’s dignity, and the City had now prioritised officially making proclamations for all of the townships, so that people could get title deeds and take ownership of their own housing.

Mr Mboweni noted that the total capital budget of the City of Tshwane was R3,1 billion, and all the grants combined made up only one third of the City's contribution. The City had taken into account all strategies, transportation and functional integration, and had established what was working and what was still needed. People should have the same opportunities, no matter where they lived, and this was critical to realising human settlement properly.

The City of Tshwane had received comments from National Treasury and the Department on its BEPP and had incorporated this into the performance plan. Mr Mboweni indicated all the deliverables and said that all the projects had been listed for transparency. He noted that this was the only municipality who did not have service delivery strikes during the elections, due to maintaining open contact with its people.

Mr Mboweni also commented on the City’s good working relationship with the Provinces and said that the programmes were aligned with the City's IDP and formalisation strategy, BNG projects, and took into account the City's economic nodes of development. The City was also hoping that it would receive Level 3 accreditation.

Mr Mboweni stated that the infrastructure in the dormitory townships created under apartheid was operating at 120% capacity for sewers and reservoirs. It was therefore necessary to increase the infrastructure in those areas, and connect more people to infrastructure through formalisation. Five new substations had been erected around Khayelitsha, and businesses were now keen to relocate to that area.

Mr Mboweni outlined some of the challenges in the Winterveldt area, in terms of land claims issues and other problems inherited. Another difficulty was that the City did not own its own caterpillar machinery, which was an impediment when they were doing civil engineering.

Discussion   
Mr Steyn queried the lack of long term planning apparent from the presentation, and noted that there had been a focus on doing the small things. He said that the Committee wanted to see evidence of long term planning that would change the face of the City, including those currently on the periphery of the City.

Mr Steyn agreed with Tshwane's desire to give people security of tenure on land, even if they did not yet have a house. He wanted to know the whether people received serviced land, or simply a piece of land. He also noted the City's target of 36 000 serviced sites, but asked how it planned to double that. He wanted to know what the city's record on delivery was for the past three years. In regard to the desire also to fast-track proclamations, he noted that the Committee, during oversight visit, had seen that there were huge problems around the issuing of proclamations. He asked what specific obstacles were faced, and how the City of Tshwane had dealt with them, as its experiences could assist other metros.

Ms Njobe appreciated the fact that timeframes for projects were set out in the presentation. She agreed with Mr Steyn that there seemed to be a focus on the short term, but said that the timeframes made it easier for the Committee to do oversight. She questioned what the reaction of people in informal settlements had been when they were relocated, asking if they would not prefer to have their existing facilities upgraded.

Mr Mboweni agreed, on the issue of relocation, that it was difficult to relocate people who already had rudimentary services, particularly if they were to be relocated to places which lacked services and public transport. People in the better-established structures, such as Brazzaville, were reluctant to move, and obviously communities preferred to move to places where the top structures and services were better. There was not yet a perfect solution. However, the City, in Soshanguve CBD and other congested areas, had moved almost everyone to a service stand, and the community itself had taken leadership.

Mr Mboweni said that there were major projects and development on strategic land parcels, for longer-term development. However, the City was hoping that activity could be found everywhere, thus creating employment in development. If there was real activity along the major corridors, the City could realise its strategic goals. Unless something was done on the ground, people would not grow their respect.

Mr Mdakane noted that Tshwane was a vast area. He said that many of the squatters might not even be South African, as Tshwane tended to attract many people from different parts of the Continent. The social wage was high in Tshwane, with much time taken up by commuting, so that  workers enjoyed little family life. He also noted the lack of activity in the City at night and said that all metros who wanted to boost the economy and vibrancy of their cities should see that the City was pulsing for 24 hours a day.

Dr Ndivho Lukhwareni, Service Delivery Co-ordinator, City of Tshwane, gave more feedback on the long-term planning. Tshwane aimed to develop infrastructure in the north, and to maintain the South. Out of this strategy, the plans for Rainbow Junction emerged. The Tshwane International Hub was developed at the junction of the N4 and N1.The BRT commenced in the north and went to Mamelodi. The City's strategy was that rather than moving everyone to the centre of the town, it would create opportunities where the people were living. There was also the Winterveldt Land Reform Initiative in the north.

Another leg of the development process involved the concentric circles of five kilometre radius which were identified in the presentation. The inner circles indicated areas for densification and inner city vibrancy cores. The City had identified all the vacant lots and contacted the owners, establishing that most of this land was held by parastatals such as Transnet, or academic institutions. The City would then propose developments for these areas, involving the private sector. There were initiatives to convert disused buildings into residential units, together with supporting services for residents. In region 5, ecotourism was put in place around areas such as Cullinan. In the older area of Bronkhorstspruit, the City was positioning itself for 'urban" agriculture, which was a new venture. All in all, the City had identified 35 strategic land parcels and they had floated 12, calling for expressions of interest on development. The City had received proposals for mixed development, an adjudication process had taken place, and it was partnering on these developments. One key driver was the development of strategic transportation nodes and the link between Soshanguve and Centurion had been completed, with cooperation of the province.

Dr Lukhwareni noted that in terms of housing delivery, it was recognised that the City would have to supply a minimum of 18 000 units per year to ease the backlogs, but this was not achieved. The Province had also provided houses in the Winterveldt, and relocations had taken place. It was correct for people to be informed of the truth, rather than making promises that people would not be moved. People were told upfront, when infrastructure was put in at Brazzaville, that this was rudimentary and temporary, and that people would be have to be moved in the future.
 
Dr Lukhwareni stated, in relation to the proclamations, that the City was currently losing water revenue on the areas that were not proclaimed. Although households were required to pre-pay on their electricity, they were not being billed for water, and the Metro was not collecting rates and taxes. According to the National Policy, the City could not proclaim if there Certificates 113, 115 and 101 were not in place, relating to the level of the roads, electricity and other issues. The City had decided that where there were no gravel roads, there would be no proclamations. By the end of 2010, the City had ring-fenced funds for gravel roads, and the City was almost at the stage where people could be given title deeds.

Dr Lukhwareni said, in relation to transport, that there had been a study, together with Province, to look into the feasibility of re-commissioning the Hamanskraal City Rail, and studies also into Maloto Rail, BRT and also three stations linked to the Guatrain. The City also had over 300 of its own buses, and had revitalised its fleet by buying 100 new buses.

Dr Lukhwareni agreed that the City “died” at night, but the City had commissioned University of South Africa to assist with a revival of the City, and the area around the corner of van der Walt and Pretorius Streets was ring-fenced to become the Lilian Ngoyi Square. Activities would be provided for school-children after school. The City had also been very lucky to be chosen by DPW for a multibillion rand programme for the revitalisation of inner cities. It would contribute to the revitalisation, as it was entering into a partnership to rebuild the old headquarters which had burnt down. This would be rebuilt, not as the original building, but as one mixed with shopping and entertainment, as modern building. Statistics SA had already signed up for office space. This City also aspired to become the home of jazz music, which would contribute to inner city vibrancy. Tshwane had a lot of students and academic institutions, which provided a young and vibrant crowd wanting entertainment.

Mr Steyn returned to the issue of the delivery of the 36 000 serviced sites that the City planned on delivering, asking for further clarity, particularly given the low record of delivery to date, and saying that the Committee would hold the City to its targets.

Mr Mboweni clarified that the City was not delivering top structures, but serviced stands, and this allowed for greater outreach. In the current financial year, there would be a focus on bulk infrastructure, and that would release more money in years two and three, and implementation was seen as key.

Mr Mdakane said to the other metros that it was a good idea to provide a site-and-service, as it would then be easier for people to mobilise co-operatives to build top structures. If this was not done, the issues of human settlements and economic activity would not be addressed. He added that the Committee would like to see areas where co-operatives were working successfully.

Nelson Mandela Bay Municipality briefing
Ms Dawn McCarthy, Director: Land Planning and Management, Nelson Mandela Bay Municipality introduced her delegation and said that this presentation was a condensation of the BEPP, with additional information that was requested on the USDG allocation. She would be brief, and not reiterate matters set out in the previous presentations, and would also highlight the differences as opposed to the similarities with previous presentations.

Nelson Mandela Bay Municipality (NMBM) was the second largest metro in area, after eThekwini, with a population of 1,1 million, projected to increase to a projected 1,24 million by 2020. This was not a massive growth figure, as NMBM did not experience the huge in-migration that other cities had, although it did have challenges of poverty. There were high numbers of indigent households, and 44% of households received at least one social grant. There were 289 000 formal housing units and there was a backlog of 87 000 housing units, comprised of backyard shacks and informal settlements. One third of the population was without housing or was inadequately housed. 91% of the population had access to basic sanitation but the bucket system was still in operation. There was an unemployment figure of greater than 35%.

NMBM received its full capital budget from grant funding, and there was a recovery process with National Treasury. The Urban Settlement Development Grant was nearly 35% of the capital budget. Ms McCarthy referred to the current economic slump and the global recession of 2008/9 and said that a recognised indicator of some level of economic regeneration would be the increase in the number and value of building plans. This upswing was reflected in the graphs in the presentation.

Addressing the backlogs for engineering and other services and the budgetary implications for operational and capital backlogs, Ms McCarthy highlighted the huge gap in funding in the capital budget for the 2011/2012 financial year. While the annual requirement to eliminate backlogs was R883,59 million, NMBM’s capital budget for 2011/12 was only R261,400 million (see presentation). She noted also that a portion of the housing backlog calculations was set aside for the provision of social facilities and amenities, to make housing development part of a fully integrated human settlement. She emphasised that unless they dealt with civic amenities and the public realm, townships would never change their face.

In conclusion, Ms McCarthy noted that the backlogs outweighed the USDG allocation by a very large margin but NMBM had had the capacity to spend more than the allocation.

Discussion
Mr Steyn commented that this was a very interesting and well presented briefing, in line with similar impressive presentations during an oversight visit in 2010, but that although the presentation was very good, the Committee had later discovered that there was a very different situation on the ground. He urged that this metro must translate its plans into real delivery, and he could already see where there were shortcomings. He noted that there was non-alignment of the provision of social services, as well as of the funding streams. A matrix had been developed to address that exact problem, and this reinforced his impression that on paper things seemed to work, but they did not always get translated into practice. Another shortcoming of the presentation itself was that the trend for backlogs was shown as static, with no indication of how much of the backlog would have been reduced by 2020.

Mr Steyn noted that the private sector would realise, when submitting plans, that at some stage there would be over-supply and astute businesspeople would be likely to hold back on building. However, there was still the possibility of more public/private partnerships (PPPs) to provide the integrated type of housing envisaged for sustainable human settlements, with affordable bonded housing and subsidised housing mix.

The Chairperson said she was unsure about the list of capital projects, and the issue of housing development was not coming out clearly in the metro’s plan.

The Chairperson also wanted an update on land that was purchased in the St Albans area, at Fitch's Corner, which the Committee had visited in 2004. However, in 2009 the Committee had been informed that this land could not be developed because of the results of an EIA. A report was requested from the Department of Environmental Affairs, which seemed to indicate that there was no blockage, and that the area could be developed, provided that bulk infrastructure was in place. She asked when exactly the development of that land would take place. It was not listed, and she asked if it had been identified for development if all that was required was the infrastructure. The Province should be able to provide the top structures.

Mr Matshoba agreed with the Chairperson that nothing seemed to have changed at this site.

The Chairperson said that NMBM should study a copy of the Committee’s oversight report. The Department channelled these reports to the municipalities and there should be a response.

Ms McCarthy agreed with the comments and she said she had tried to highlight the barriers to implementation in her presentation. She said that in the development in Motherwell, there was alignment between the spheres of government and the rollout was happening in an effective and visible way. She invited the Committee to visit this project on its next oversight visit.

She agreed that there was an obvious oversupply, but said it was difficult to put mechanisms in place to reign in the resources on private land, so that NMBM could achieve its objectives.

Ms McCarthy said that she was not sure of the full situation in regard to Fitch's Corner and would therefore revert to the Committee with a full written answer.

Mr Kevin Jacoby, Chief Financial Officer, NMBM, responded on the questions about the project list of the USDG. This list was only for the USDG and did not include the Metro’s whole capital programme. The focal point at the present moment was the drought relief, for which NMBM would receive national assistance of R450 million. There would be a focus on bulk services, water reticulation and bulk water provision. NMBM was trying to secure water supply, and water, as a scarce resource, would receive priority.

Mr Jacoby noted that there was reference to St Albans on the list, for bulk water for year three, and he wondered if this might be related to Fitch’s Corner.

Mr Jacoby noted that the USDG was an important mechanism to help the metro deal with its backlogs and expansion. He stated that in the outer years it was hoped to engage the National Government on extending the grant, in order for the NMBM to deal with its poverty issues and bulk infrastructure challenges.

Mr Steyn noted the pilot project for solar heating querying why, if it was at such an advanced stage, the Committee had not yet received any reports. He asked that the reports be sent.

The Chairperson said the Committee would give NMBM a chance to study the Committee’s Report on the oversight visit, which she would e-mail through. The Committee would then invite both the NMBM and the Province to give feedback on the progress that had been made on all the issues, before doing further oversight itself.

Mr Chainee added to what Mr Jacoby had said about the NMBM's financial constraints, saying that there was a range of reasons for this. National Treasury and the Department had looked at providing special attention to the NMBM, particularly at how to achieve sustainable development, job creation and economic growth, given that this Metro relied almost entirely on grant funding for capital projects. The Committee must take this into account. The Department had seconded an official specifically to assist in the management of some of the programmes. Mr Chainee noted that from the National Department's perspective, it was necessary to build capacity when a Metropolitan Municipality required assistance.

The Chairperson expressed appreciation that the Department had already given assistance to the NMBM.

The Chairperson noted that guests from the NHBRC were present, and the NHBRC would be monitoring the quality of projects.

The Chairperson was pleased to hear the commitment of the metros to the process, and the Committee had learned much from them, and was looking forward to working closely them in the future.

The meeting was adjourned.