Department Budget: briefing

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Meeting report

HOUSING PORTFOLIO COMMITTEE
9 March 2005
DEPARTMENT BUDGET: BRIEFING

Chairperson:
Ms Z Kota (ANC)

Documents handed out:
Department budget
Department budget: PowerPoint presentation

SUMMARY
The Department of Housing presented its budget for 2005/06 – 2007/08. The Committee was given a strategic overview and an indication of policy shifts reflected in the budget and most important six Department programmes.

MINUTES
Mr A Vawda (Department Acting Director-General) gave a general overview of the budget for 2005/2006, and said he could provide copies of his PowerPoint slides. The Committee was given a strategic overview and an indication of policy shifts reflected in the budget and most important six Department programmes.

Discussion
Mr A Steyn (DA) had concerns regarding monitoring and asked what was meant by a ‘Single Resident Property Market’.

Mr Vawda explained that the Department operated in ‘two economies’. Property values had risen, but only in one market. A ‘Single Resident Property Market’ would be beneficial for South Africa and the Department intended to contribute to its establishment.

A Member indicated concern about the monetary mechanism in rural sectors. She also asked how the Department differentiated between the ‘People’s Housing Process’ (PHP) and other housing programmes.

Mr P Chauke (Director: Policy and Programme Monitoring) said that monitoring mechanisms were in place and indicated that figures were available regarding the delivery of houses.

Mr Vawda said that the PHP should be viewed as only one instrument used by government. Other housing projects should also be popularised. There were special programmes regarding rural houses and residents of these areas could obtain subsidies. Some programmes would be concerned with the evaluation of traditional housing, and adding value to these houses.

The Chairperson asked for more details on the activities of the relevant Sector Education and Training Authorities (SETA).

Mr J Wallis (Chief Director: Programme Management) said that there were capacity-building programmes in place. All programmes had been accredited by the SETAs. There were still eight students participating in their bursary programme, although a few had dropped out. New bursaries were not available due to a lack of funds. A national approach had been taken regarding accessibility to bursaries.

Mr G Schneemann (ANC) enquired whether the Minister of Housing was taking a more integrated approach to housing.

Mr Vawda said that a wider approach has been taken. Issues regarding commercial property had, however, not been included, and this issue needed attention.

A Member raised a question regarding government support for the Habitat for Humanity NGO that built houses.

Mr Vawda said that the Department was supportive, but not always directly involved. Such NGOs enjoyed relative autonomy. There was an ongoing working relationship between government and such institutions. .

Mr M Dlabantu (Deputy Director-General) presented the budget for 2005/2006 to 2007/08. Grants had been increased by R2 billion. The subsidy scheme for first-time homebuyers was being phased out. He continued with an explanation of the six programmes run by the Department. He referred Members to the considerable growth in the Medium Term Expenditure Framework (MTEF).

Mr Schneemann (ANC) indicated that the bulk of allocations had gone to two specific provinces and asked whether the current budget catered for this. He also enquired about the monitoring of expenditure and whether feedback would be given on how provinces spent their money.

Mr Vawda said that the provinces needed to align their programmes with the allocations. Mr Dlabantu added that consideration had been given to provinces before the year started. There was no lack of developmental arrangements. The Department had provided and received monitoring reports. Constitutional imperatives had influenced the allocation of funds. A new formula needed to be developed for fund allocation.

Mr Vawda added that no study had taken place in the provinces in order to establish their problems. Houses built before 2002 were of poor quality. They are now dedicated to rectifying this. Houses built before 1994 also needed investigation. The Chairperson added that a new plan was needed to address the problems of houses built before 1994

A Members raised concern about the substantial increase in spending on consultants and whether this indicated that the Department lacked capacity.

Mr Steyn (DA) was worried about the increases in expenditure on policy planning and research. Although the budget catered for a six-fold increase in expenditure regarding capacity-building, provinces and municipalities still experienced problems. He asked for clarification on these challenges, as well as what was meant by the ‘New PHP’.

Mr Vawda stated that increases in policy planning and research allocations had been made to produce the necessary research. He agreed that there had been a substantial increase in spending on capacity-building.

Mr Wallis said that capacity-building remained a huge challenge. The increased spending aimed to create capacity among local authorities, so that more municipalities could take more responsibility.

Mr Vawda explained that the original PHP had delivered very little. The policy and guidelines had thus needed revising.

Mr Schneemann (ANC) said that timeframes were needed for the new housing strategy. He queried oversight of NGOs, as there was an impression that such institutions could do what they wanted.

Mr A Steyn (DA) asked whether the Office of Disclosure would be set up

Mr Vawda acknowledged the need for result timeframes. NGOs should ideally align with the human settlement plans. The provinces needed to play an active role in identifying defective houses, and each province would be responsible for its own budget. Although research agendas had been established, research capacity still needed attention.

The Chairperson concluded that the Department needed to look at the issues raised before the budget vote took place. The relevant stakeholders had to be informed and be encouraged to input at public hearings.

The meeting was adjourned.

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