Construction Transformation Charter: briefing

Share this page:

Meeting Summary

A summary of this committee meeting is not yet available.

Meeting report

COMMITTEE OF PUBLIC WORKS

PUBLIC WORKS PORTFOLIO COMMITTEE
1 June 2005
CONSTRUCTION TRANSFORMATION CHARTER: BRIEFING

Chairperson:
Mr F Bhengu (ANC)

Documents handed out:
Department PowerPoint presentation on Construction Transformation Charter Progress

SUMMARY
The Committee received a progress report from members of the Integrated Management Committee (IMC) processing the Construction Transformation Charter. Important issues of training and mentoring within the industry were discussed, as well as the need for increased co-operation between established and emerging contractors. It was agreed to convene a special Committee meeting to discuss the controversial issue of the Construction Industry Development Board (CIDB), as well as the Property Sector Transformation Charter.

The Committee clarified the delegations visiting Mpumalanga, Northern Cape, Limpopo, North West (and possibly) the Western Cape provinces in June. Members agreed to invite Provincial Chairpersons to attend a workshop on the Expanded Public Works Programme (EPWP) the week after the visits.

MINUTES

Construction Transformation Charter Progress Report briefing
Ms Mjoli-Mncube (IMC Stakeholders – representative from Women for Housing) explained that the Construction Transformation Charter IMC team had been formed from an alliance of national business organisations, labour unions and the Department of Public Works. The team had held a roadshow and had consulted widely with stakeholders in all provinces.

Mr J Ngobeni (Co-Chairperson IMC) presented an overview of the construction industry. It was historically skewed in terms of race and gender, and had experienced declining investment and demand volatility. There was a depleted skills base, insufficient market penetration and lack of sustainable growth in black companies, preferential procurement policies and industry fragmentation.

The objectives of the Construction Transformation Charter were to bring about transformation, growth, competitiveness and efficiency and address the challenges outlined. He emphasised the importance of developing black management and ownership and the vital role of training and mentoring programme within companies. The completed Charter would be subject to annual reporting, auditing, oversight and periodic review.

Mr M Wylie (Co-Chairperson IMC) outlined the scorecard indicators and elements. The weightings and targets were still in the process of being finalised and would be completed by the end of June 2005. The elements comprised Ownership, Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Residual.

Mr A Tshalata (IMC: National Federation for Building IndustryI) outlined the aspirations of the emerging black contractors and raised the important issue of the CIDB’s categorisation of contractors, which was preventing many firms from becoming eligible contractors.

Ms Mjoli-Mncube stressed the importance of achieving a balanced scorecard in terms of growth and development and not sacrificing one for the other. Small contractors were struggling with the degree of compliance required of them.

Ms L Bici (Deputy Director-General PWD) emphasised the need to involve other government departments as the final Charter would be binding on them. Funding assistance for emerging contractors had been a problem and the IMC had had positive meetings with certain banks about providing loans to emerging contractors with fewer guarantees.

Discussion
Mr L Maduma (ANC) questioned whether ‘on the ground’ communication in all provinces had been adequate. The use of English might have excluded people from participating in the Indaba. It was important not to rely only on the Department database as a means of communication.

Mr Ngobeni acknowledged the difficulties in communicating with all areas. The use of English had been a problem in the rural areas. There had also been infrastructural problems within provinces and funding limitations.

Mr Maduma observed that many South Africans had come to view the construction industry as an easy source of income. However, many problems had been encountered once the emerging contractors entered the industry. He suggested that the Department use a similar transformation scorecard within the incubator system to determine strengths, weaknesses and overall capabilities of emerging contractors.

Mr S Opperman (DA) said it was important that party constituency offices received information about the Charter. He also questioned whether the definition of women discussed in the scorecard elements included white and black women. Mr Ngobeni responded that women within the construction industry were viewed as one group.

Mr K Moonsamy (ANC) stated that the economy had not changed sufficiently. ‘Big business’ had not always implemented the new legislation aimed at righting past economic inequalities, and should be penalised. He suggested that established construction companies be limited to very large contracts such as bridge and dam building. Emerging contractors would then have greater opportunities to do ordinary housing construction.

Mr Wiley explained that the construction industry was highly competitive and no real monopolies existed. Even the largest companies were not making great profits. The issue would best be addressed through increased co-operation between emerging and established companies. He cited the Gateway development in Cape Town as an excellent example of how this process had worked successfully.

The Chairperson queried whether the CIDB Register was mandatory. Mr Wiley explained that if contractors wanted to tender for Government contracts, they were obligated to register. This was a new law that had only recently been implemented.

Ms Mjoli-Mncube explained that registers of contractors were used in many countries to ensure safety and quality in construction. It also streamlined the Department’s administration process of adjudicating tenders. It was a positive principle, but it was being perceived as negative and exclusionary.

The Committee and IMC representatives agreed that a separate meeting would be convened to discuss the CIDB issue.

Mr J Blanché (DA) commented that including political ideology in the Charter would result in the same mistakes made by the National Party in the past. The emphasis should be on training and developing experience within the industry in order to build the economy.

ANC Members responded that redressing past imbalances was by nature political.

Ms C Ramotsamai (ANC) highlighted challenges facing the Construction Transformation Charter such as industry training and the role of women. She emphasised the need for the document to have long-term application, and felt that the process should not be rushed until the issues had been resolved.

The Chairperson asked that the issue of the Property Sector Transformation Charter be discussed at a future meeting.

Committee provincial visits
The Chairperson noted Members had received documents from the Secretary outlining the programme for the upcoming Provincial visits and the lists of the two delegations. The lists still needed to be confirmed with Members, as there was currently an uneven distribution of women in the delegations. One delegation would be lead by the Chairperson and the other by Ms Ramotsamai (ANC).

One delegation would visit Mpumalanga, Northern Cape and Limpopo Provinces on 6 and 7 June. The second delegation would visit the North West (and possibly) the Western Cape on the 8 and 9 June.

The Public Works Department had contacted the Committee about holding a workshop to discuss the Expanded Public Works Programme (EPWP). The Chairperson suggested inviting Provincial Chairpersons and proposed the week after Provincial visits as a possible date.

The meeting was adjourned.

Audio

No related

Documents

No related documents

Present

  • We don't have attendance info for this committee meeting

Download as PDF

You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.

See detailed instructions for your browser here.

Share this page: