Hansard: Appropriation Bill: Debate on Vote No 30 - Human Settlements
House: National Assembly
Date of Meeting: 20 Apr 2010
Summary
No summary available.
Minutes
START OF DAY
WEDNESDAY, 21 APRIL 2010
PROCEEDINGS OF EXTENDED PUBLIC COMMITTEE – OLD ASSEMBLY CHAMBER
__________________________________
Members of the Extended Public Committee met in the Old Assembly Chamber at 14:07.
House Chairperson Mr K O Bapela, as Chairperson, took the Chair and requested members to observe a moment of silence for prayers or meditation.
The MINISTER OF HUMAN SETTLEMENTS
START OF DAY
APPROPRIATION BILL
Debate on Vote No 30 - Human Settlements:
The MINISTER OF HUMAN SETTLEMENTS: Hon members, guests, ladies and gentlemen, comrades and friends, 26 June this year – I hope I will get more time because I am using spectacles I am not used to – marks the 55th anniversary of the adoption of the Freedom Charter, a key founding document of South Africa's democratic Constitution. We approach this historic occasion understanding that the charter remains relevant to the vision of a new South Africa. Its housing clause states, without any equivocation:
There shall be houses, security and comfort for all. All people shall have the right to live where they choose, to be decently housed, and to bring up their families in comfort and security. Slums shall be demolished and new suburbs built where all shall have transport, roads, lighting, playing fields, crèches and social centres.
Therein lies the founding philosophy, strategy, vision and practicality of Human Settlements.
Our country's Constitution resonates with the Charter on the question of housing and human settlements:
Everyone has the right to have access to adequate housing, and the state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right.
The first Minister of Housing, Comrade Joe Slovo, rallied large and small contractors, labour unions, community organisations and financial institutions in 1994 in Bloemfontein, resulting in the landmark Botshabelo Accord, which stated:
Government strives for the establishment of viable, socially and economically integrated communities which are situated in areas allowing convenient access to economic opportunities, health, educational and social amenities and within which South Africa's people will have access on a progressive basis to: a permanent residential structure with secure tenure, ensuring privacy and providing adequate protection against the elements; and potable water, adequate sanitary facilities, including waste disposal and domestic electricity supply.
That is the Botshabelo Accord.
President Zuma then gave further meaning to this in his state of the nation address last year. He stated:
As part of social infrastructure development we will provide suitably located and affordable housing and decent human settlements. We will proceed from the understanding that human settlement is not just about building houses. It is about transforming our cities and towns and building cohesive, sustainable and caring communities with closer access to work and social amenities, including sports and recreation facilities.
Against this backdrop, the mission of the Department of Human Settlements - on behalf of Government - remains clear: to ensure decent shelter, the most basic need, as a critical part of a better life for all.
It is important to highlight the three key areas of our intervention, which touch every South African. First, at the uppermost end of the housing market our responsibility is to ensure an enabling environment through policies and legislation that protect consumers who are building or buying homes at that level. This is primarily achieved through the Home Loans and Mortgage Disclosure Act, to which we will return later.
Second, at the bottom-most end of the market, we provide housing subsidies to the poorest of the poor. This is a critical area, because the bulk of the housing backlog in South Africa exists there. Again, we will return to this point.
In between these two are the "gap market people" who don't qualify for either bank credit or a government subsidy. Their cries have been heard by the President and by my colleague, the Minister of Finance Pravin Gordhan, resulting in the creation of a guarantee fund of R1 billion, for a start. These endeavours go beyond providing shelter, contributing also to economic growth and job creation, while at the same time restoring human dignity.
Our holistic approach to human settlement development recognises that the economic fortunes of South Africans are never static. Someone who lives in a shack in Gugulethu today may occupy an RDP house in Delft tomorrow - or, later, reside in Rondebosch.
As the Ministry, working within the Cabinet collective, we participated in developing a new outcomes-based approach to defining our targets and to measuring progress. The January 2010 Extended Cabinet Lekgotla tasked us with implementing what is known as Outcome 8, whose objective is "sustainable human settlements and improved quality of household life".
To meet that objective, we have prioritised four areas of work between now and 2014 because our Medium-Term Strategic Framework, MTSF, pre-period ends then. These are: accelerated delivery of housing opportunities; access to basic services; more efficient land utilisation; an improved property market. In the field of housing opportunities, the target is 220 000 units per year between now and 2014.
Additionally, we are acquiring more than 6 250 hectares of well-located land for human settlement development and an enabling environment is being created for the provision of 600 000 new loans in the affordable housing sector.
In addition, 500 000 informal-settlement dwellings are being upgraded, as we speak. We must emphasise that such upgrading does not detract from government's long-term objective of eradicating slums. The combined effect is that by 2014 we will have made significant inroads in our mission of ensuring sustainable human settlements and an improved quality of household life.
Irrespective of what sceptics may say, the record of this government on housing delivery speaks for itself. Since 1994, more than 2,3 million housing units have been made available to nearly 11 million people. [Applause.]
The scale of government housing delivery is second only to China and, as the Banking Association of South Africa pointed out when we met this week:
Government's most dramatic intervention in the welfare housing sector has been its national housing subsidy programme. The success of South Africa's housing programme is unparalleled, and we can be proud of our achievements.
Those are the words of the banks, not ours. [Applause.]
This work continues unabated and, as things stand today, we have more than 8 000 human settlement projects under way across the country, with preliminary figures translating this into the construction of 219 000 housing units in the past financial year. At the same time, there is a need for realism as we go forward. We must learn to be candid inside this House, and with the nation at large.
Despite all these commendable efforts, the housing backlog has grown in leaps and bounds from 1,5 million housing units in 1994, and that backlog now stands at approximately 2,1 million. What does that means? It means that approximately 12 million South Africans are still in need of better shelter. We have, therefore, hardly moved in just breaking the backlog, never mind the numbers associated with natural population growth.
As a reflection of the increased demand, the number of informal settlements has ballooned to more than 2 700 - 70 of which, by the way, are slums occupied solely by white people. Recently, when accompanying President Zuma in Pretoria, we saw an example of what white poverty meant. We can, therefore, make this statement: let's not play about with poverty. It knows no colour line.
This partly explains the phenomenon of service delivery protests. Such protests in themselves fall within a democratic culture of protesting. But let's also make this clear: we join Minister Shiceka in condemning the violent behaviour in some of these protests, as well as the destruction of property. While we are all working hard to find solutions, such protests must be based on the needs of our people, not violence.
The reality is that we are currently only able to clear the housing backlog at a rate of 10% per annum of our budget. With the current pace of delivery and resources at our disposal, and mindful of continued economic and population growth and the rapid pace of urbanisation, it could take us more than many decades just to break the backlog. In real terms, as a country, we have hardly moved.
Sepedi:
Ka Sesotho bare fatela morago bjale ka kgogo.
English:
Nevertheless, we can never turn our backs on the poor. It is not their fault, nor should poverty be used as a political football. The scale of the problem, from a Human Settlements point of view, has already been brought to the attention of government colleagues in a presentation to the Extended Cabinet Lekgotla recently.
Of significance are the Human Settlements presentations that were made during the Presidential Co-ordinating Council last month. Ministers, as well as Premiers and members of Salga were present, and we were led in discussion by President Zuma himself. In respect of Human Settlements, it was recognised during this Presidential Co-ordinating Council that the current fiscal allocations from this House are inadequate - with the potential unintended consequence that budget allocations do not match the expanded mandate of Human Settlements.
Also captured in the discussion was the fact that, although budgets were important, our work also required thorough co-ordination with government stakeholders in all three spheres, as well as with the private sector and civil society.
Consequently, we hereby announce to members of the House and the public at large that the President, who has taken a keen interest in poverty alleviation and service delivery, has instructed that a special Presidential Co-ordinating Council be held on 18 May to focus all the efforts of government and other stakeholders, including experts, on only one topic on the agenda: Human Settlements. The Presidency and the Ministry have already held one meeting so that we go into this special Presidential Co-ordinating Council adequately prepared.
Regarding "Towards Human Settlements 2030", questions are being asked about what will continue to propel the South African economy beyond the current infrastructural developments which are also associated with the 2010 Fifa World Cup starting 50 days from now. Undoubtedly, the World Cup will be a resounding success. South Africa has constructed massive highways, iconic stadia, world-class airports and state-of-the-art technology platforms.
The target for Human Settlements ought to be nothing less than an enhanced vision, driven by a similar energy and passion to the World Cup 2010, but this time round it is "Human Settlements 2030". It is important that we think creatively about large-scale human settlements as the stadia, airports and highways of our people.
To that end, we as South Africans must explore the possibility of marshalling resources in a similar fashion to the way we impressed the world, correctly so, with preparations for the World Cup. Many South Africans who live in depressed conditions should and need to be impressed as well.
The current large-scale mobilisation of human, capital, financial, logistical, construction, project management and other resources should not be allowed to dissipate after the final World Cup whistle. The potential exists for the whole country to be turned into one large construction site as we build sustainable human settlements in various localities.
In this regard, the role of the National Planning Commission led by Trevor Manuel, whose responsibility it is to develop an overarching national strategic development plan, becomes crucial because our planning tasks as Human Settlements can only succeed within such a broad framework. To an extent, the same applies to the participation of other departments associated with macro-economic development issues.
In crafting our vision, we are mindful that a child born today will be 20 years old by 2030 and will need somewhere to live. We should be planning for the needs of that future adult.
In order to succeed, Human Settlements 2030 must be for and by the youth because it is about their future homes, whether it be apartments, bachelor flats and so on; in rural settlements or urban cities and towns. This also contributes to economic growth and job creation. This campaign should be owned by the youth.
Housing construction and manufacturing are some of the key drivers of the economy. They stimulate every sector, be it in mining, agriculture, manufacturing, construction, wholesale, retail and finance, which is the lifeblood of any economy. There is no successful industrialised nation today which has human settlements on its backburner, or merely for social-welfare purposes. In this context, the department is forging stronger relationships with the financial sector, which plays a central role in providing credit and housing finance, and in driving the economy.
During recent engagements with the country's major banks – all of them - we came away satisfied at the positive outcomes, and we can confirm to the House that we agreed to form a joint working team to look into various aspects of housing finance, including how to generate innovative ideas around the R1 billion Government Guarantee Fund referred to earlier.
Those who stand to benefit from such a financial platform include, inter alia, nurses, teachers, police, prison warders, government officials, certain categories of management, blue-collar workers and other workers.
We emphasised to the institutions that in putting the floor under their operations in this "gap market" to mitigate the risks, while also providing an opportunity to beneficiaries, financial prudency should remain paramount in accordance with the regulatory requirements of the country. In no way can there be recklessness in lending practices, which may lead to flippant calls upon the Government Guarantee Fund. Similarly, beneficiaries are well advised to exercise responsibility by adhering to the terms and conditions under which credit is made available.
Furthermore, in our discussions with financial institutions we raised concerns about their compliance with the Home Loan and Mortgage Disclosure Act, Hlamda, under whose prescript institutions are required to provide the Minister of Human Settlements with information in their annual financial statements on lending patterns. As we said to them, such information has to be accurate, timeous and comprehensive to allow for its consolidation and analysis by the department. This enables us to assess the performance of these institutions in providing credit to all South Africans who qualify beyond the "gap market".
The Ministry is committed to playing an activist role in monitoring the banks' performance, in the interests of regulating the homeowners' property market, while being alive to the complexity and sensitivity of the operations of financial institutions.
We also assured financial institutions of our commitment to strengthening our own disclosure office and - to the extent where Human Settlements is concerned - to examine and, where possible, to ease any onerous reporting procedures without diminishing their compliance in respect of the Home Loan and Mortgage Disclosure Act.
With regard to the current budget, which is allocated to Human Settlements for the provision of housing subsidies to the bottom-most end of the market - the poorest of the poor, who largely earn anything between R0 and R3 500 a month - the total budget from this House is R16,2 billion for the 2010-11 financial year. Over the 2010 MTEF period the conditional grant to provinces grows from R15 billion in 2010-11 to R17,9 billion in 2012-13. A large percentage of this is allocated to provinces in the form of housing development grants.
In addition, starting from this financial year, we have an allocation of R1,2 billion for the sanitation programme to contribute to easing rural infrastructure backlogs for the MTEF period.
A total of R377,2 million has been allocated to human settlements institutions. An amount of R151,8 million is allocated to the new Social Housing Regulatory Authority, R49,5 million to the Rural Housing Loan Fund, and R69,3 million to the Housing Development Agency. In the 2009-10 financial year, R12,4 billion was transferred to provinces, which had spent R12,2 billion, or 98% of their funds, by 21 April.
As we plan and implement our expenditure, it is appropriate that we emphasise several positive developments taking place within Human Settlements, which are already contributing towards us achieving the targets set in Outcome 8 and towards our vision of Human Settlements 2030. These include the following: first, the increased roll-out of sanitation infrastructure programmes in rural areas. The second week of May 2010 has been declared Sanitation and Hygiene Week. We must emphasise that sanitation is not only about health and hygiene but also about human dignity. People should be able to conduct their sanitary functions in private, as opposed to reports of the recent scandalous toilets in the veld. [Interjections.]
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon Minister, your time has expired. However, you may take five minutes from your response time, if you want, and if ANC speakers saved time that could also be added.
The MINISTER OF HUMAN SETTLEMENTS: I hope they do that because this is the first Human Settlements Budget Vote. [Laughter.]
Second, significant progress has been made in building the capacity of municipalities through our municipal accreditation processes. Third, significant gains have been made in strengthening partnerships with the homeless and civil society, including Sanco.
Fourth, new channels of communication with the public have been opened. Numerous communities were visited to hear first-hand their issues. This is similar to what the President has done in visiting many areas, including, recently, Delakufa. Fifth, regarding parliamentary questions from colleagues, our records indicate that over 100 questions had been responded to during the current session. This oversight is welcomed. However, we note that questions tend to focus more on subsidies than on the broader issues of human settlement. There is, we believe, room for improvement.
Sixth, regarding our legislative programme, the overarching legislation upon which the development of human settlements is founded - the Housing Act - will be subject to review. The Sectional Titles Schemes Management Bill and the Community Schemes Ombuds Service Bill will be introduced to Parliament in the course of this year. Also on the horizon is an indaba on alternative technologies, to ensure access to the myriad new ideas and products that have been developed by the private sector.
There are areas of concern and it would be remiss of us not to highlight some fundamental challenges to the delivery of sustainable human settlements. The first relates to what we characterise as the "legalisation of illegality". This refers to the negative impact of unintended consequences emanating from certain landmark judicial rulings on the human settlements mandate. In some cases, court rulings have forced the amendment of human settlements policy, with severe and unplanned budgetary consequences.
The most recent far-reaching ruling is the one that was quoted in this House against the Johannesburg Metropolitan Municipality, where the city was ordered to pay rent to a private property owner on behalf of illegal occupiers until alternative accommodation has been found for them.
While being dutifully circumspect about the constitutional independence of the judiciary, the Ministry of Human Settlements is concerned about rulings that could virtually collapse government budgets and plans where unlawful behaviour - in this case, the illegal occupation of land and buildings - is legitimised by a series of court rulings; hence my reference to the legalisation of illegality by the courts.
My colleague, the Minister of Justice and Constitutional Development Jeff Radebe, has been mandated by Cabinet to take the lead towards a resolution of this question. Of equal concern are bureaucratic blockages, which affect every step of the human settlements delivery chain.
As part of its outcomes-based approach, government has resolved that we must make our work simpler, reduce compliance work that adds no value, and focus our energies on the new deliverables and do them well.
This is my parting short - we would like to focus on two very positive areas of work: war on waste and war on corruption. Cabinet decided collectively that departments should control and cut costs.
Preliminary expenditure reports for the 2009-2010 financial year indicate that we have saved R53,2 million in operational expenditure. [Applause.] This includes a saving of R20,6 million in cuts to travel and subsistence, R24,4 million in cuts on our advertising budget, and R3,3 million in cuts on administrative fees. An additional R31 million was saved from personnel expenditure and R34 million from transfers to our institutions.
Finally, as the House is aware, there is an ongoing battle against corruption. I appointed a National Audit Task Team last November, headed by the Special Investigations Unit, with Willie Hofmeyr as the head. The task team is hard at work tracking down those responsible for corruption, abuse and malpractices.
To date, 1 570 officials have been arrested, of whom 1 189 have been convicted, and R38 million has been recovered. [Applause.] This process has also seen five lawyers struck off the roll - and more are to follow. [Applause.]
Colleagues, corruption has become endemic in our society and needs to be rooted out. This much must be very clear: We are undeterred in our resolve to eradicate this plague, which is so debilitating to our society. I thank you. [Applause.]
The CHIEF WHIP OF THE OPPOSITION
The MINISTER OF HUMAN SETTLEMENTS
The CHIEF WHIP OF THE OPPOSITION: Mr Chairman, I rise a point of order. I didn't want to interrupt the hon Minister and I respect your ruling regarding time allocation, but one has to appreciate the fact that time is set aside for responses to the debate. The more the Minister takes time out of the responses, the less time there will be for debate. Questions raised in the debate ought to be answered and, again, it defeats the object of a debate such as this, where a Minister has to respond. I ask you to just bear this in mind in future.
The HOUSE CHAIRPERSON (Mr K O Bapela): Order, hon members! Okay, hon members, the point raised is in order.
Mr M J ELLIS: Chairman, I am raising a point of order, please. In supporting my colleague from the DA, may I say that when we first discussed the structure of these debates, it was decided that the executive will have 45 minutes. It is not very well to say now that the Minister may take time from the ANC. That is actually defeating the object. I urge you to put that rule into use because the executive should not have more than 45 minutes in a debate of this nature.
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon members, I was saying that the point raised is in order and we continuously appeal to the executive and those who draft the speeches to time them, so that we indeed remain within the allocated, recorded time and have time for responses, if we could. But you have already spent six minutes of your 10 minutes and you are left with four. It is up to the party to add up, so that there could indeed be debate in the House.
The MINISTER OF HUMAN SETTLEMENTS: Chairperson, if it would help, I am prepared to contribute one of my minutes to Mr Davidson. [Applause.]
The HOUSE CHAIRPERSON (Mr K O Bapela): It is up to the DA to regard your offer of a donation to them.
Ms B N DAMBUZA
The MINISTER OF HUMAN SETTLEMENTS
Ms B N DAMBUZA: Chairperson, Ministers and Deputy Ministers, hon members, the departmental team, distinguished guests, the ANC vision for social transformation is to create a caring and cohesive society, a society that recognises the existence within it of massive poverty, deprivation and inequality, resulting in unequal access to economic resources and opportunities. Sensitive to this condition, the ANC has committed itself to making full use of available materials and human resources to grow the economy and create jobs such that the poor are cushioned from poverty and deprivation.
The ANC seeks to build a compassionate society in which all South Africans, irrespective of different social and economic backgrounds, identify with the particular hardships experienced by women, children, youth and persons with disabilities. The ANC also seeks to create a society where all identify themselves as a common people with a common destiny, and all are proud to belong to it. The ANC has the objective of creating a united, nonracial and nonsexist society – a society that is more cohesive.
Access to housing is a basic human right enshrined in the Bill of Rights. There is broad consensus on the fact that human settlements are of central importance to everyone's quality of life and health. Human settlements are also of a considerable economic, social, cultural and personal significance. They are a very valuable asset as well. All people shall have a right to live where they choose, be decently housed and bring up their families in comfort and security. Provision should also be made for different forms of tenure.
The principles underlining the ANC's housing policy are the following: housing is a right, housing should contribute to social equity, housing is a critical component of development, and community control over and participation in housing delivery is of the utmost importance. The ANC also believes that all citizens of South Africa have a right to essential services such as water, sanitation, refuse removal, electricity, and decent housing appropriate to family and individual needs. The democratic state has undertaken appropriate legislation and executive action to ensure that these basic needs are met in a progressive manner. It is also recognised that this objective will not be easy to fulfil in the short term, but it is one towards which we should strive.
Given the pervasive poverty and the unequal distribution of wealth and land, the ANC's housing policy promotes nonracialism and nonsexism. It also caters for disadvantaged groups such as the very poor, old and disabled. All racially biased housing institutions have been replaced by institutions that are nonracial, nonsexist, legitimate and accountable to the people. A uniform housing policy has been introduced to that effect. Hostels are being transformed into family units.
Equity considerations are also addressed, for example, redistribution, financial mechanisms and allocation systems. Examples of these forms of redistribution are service charges and rating systems that favour the poor, not the rich; the diversion of military expenditure to housing production; the prioritisation of investment in inner-city housing; and the upgrading of the townships, informal settlements and rural areas as opposed to investments in the middle-income housing areas.
To ensure that women's housing needs are addressed, their full participation and influence in the institutions that control housing must be guaranteed. Gender sensitivity must be a component part of the design and implementation of housing policy, as well as the design of allocation systems and the criteria used to measure affordability.
The provision of housing has been placed within a total developmental framework. These should include economic, transport, health, amenities, recreational, religious, educational, environmental and social-welfare considerations. They should also include policies that facilitate access to jobs and the restructuring of the apartheid cities, towns and rural areas. As such, an integrated approach which links housing to transport networks, industry, schools, crèches, community halls, playgrounds and so forth, has been adopted. In addition, our housing strategy is based on sustainability in the short to the long term.
Community participation and control over the housing delivery process is critical to the successful implementation of our housing strategies. The ANC believes that community groups should be able to participate in the design, implementation and management of their settlements. We therefore advocate the introduction of a human settlements policy that encourages and supports community-controlled development initiatives. Furthermore, the ANC believes that organs of civil society must play a major role in human settlements policy formulation. Communities will have the right to organise themselves around settlement issues and strong community-based organisations will be encouraged.
The process towards the move from strictly a housing policy to an integrated human settlements policy has evolved since the 50th national conference of the ANC in 1997. The ANC believes that a single national housing policy, administered through a national human settlements department, and the establishment of the Housing Development Agency are assisting in the identification, acquisition and assembly of suitable and well-located land to address the provision of houses and services. Within this single framework, different but complementary policies have been formulated for urban and rural areas, as well as the upgrading of the existing poor levels of settlements and services. The allocation of land in urban and rural areas should not discriminate against people on the basis of race and gender, foster nepotism or other forms of corruption, and should not involve lengthy time delays.
Our human settlements policy is more than the delivery of a product. It is a process that contributes to the cultural, economic and social development of the entire society. It is therefore part of our strategy to improve people's total living conditions. Human settlements investment is being implemented in such a way as to promote labour-based delivery in the context of acceptable labour practices, and to improve the capacity of small- and medium-sized builders in the delivery of settlements.
The concentration of ownership in the building materials sector is a matter of great concern to the ANC. In this regard, the ANC is committed to exploring the use of antitrust and antimonopoly legislation, as well as introducing mechanisms that will make building materials more affordable.
The state must play a significant role in the provision of finance to low-income human settlements programmes. While market relations are an essential component of a mixed economy, the ANC does not believe that the market is able to adequately address the human settlements needs of all South Africans.
Therefore the ANC supports the provision of subsidies to facilitate access to basic and essential services and settlements. We advocate the restructuring of the housing finance and subsidy system so as to target those who are needy. That includes universal access to basic services such as water and sanitation. Postponement of infrastructure investment for the provision of urban water and sanitation can lead to much greater costs in the future.
Quite a number of people are still with no improved sanitation facilities. Therefore investment in clean water and sanitation can provide economic returns because outlays for relatively small initiatives may be used to avert the much larger costs associated with urban crises. It is imperative, therefore, to provide efforts aiming to improve sanitation and clean water and these should be carried out simultaneously in rural areas.
As far as I'm concerned, estimates and expenditure on these programmes will have to double over the next five years
IsiXhosa:
Into ke leyo ethetha ukuthi esi sabelo kufuneka sithi xhaxhe ukuhlangabezana neemfuno zokuhlaliswa nokuzinziswa kwabantu ngokugqibeleleyo nangokusulungekileyo.
English:
The ANC welcomes the progressive step, outlined in the state of the nation address by President Zuma, of the transferring sanitation function to the Department of Human Settlements. The ANC also believes in ensuring that the provision of sanitation is kept in line with the delivery of housing units in human settlements. The ANC also believes that this will play a vital role in job creation for rural communities. The youth will benefit in the process.
In his state of the nation address, President Zuma also indicated that R1 billion would be made available as a guarantee fund to facilitate the delivery of affordable housing.
IsiXhosa:
Mphathiswa siyakucela ukuba uqinisekise ukuba ibhodi iyasekwa ukuze ikwazi ukuhlola isebenzisana nawe.
English:
The portfolio committee believes that consultative processes are already under way to facilitate the use of funds, but we would urge the department to ensure that a very clear policy, with user-friendly implementation guidelines, is drafted to facilitate the structure and use of the guarantee fund.
The concept of human settlements is not a new concept. At the 2002 national conference of the ANC a call was made to expand the provision of housing to include social housing; people's housing processes; and appropriate housing for rural people, including the development of agricultural villages to ensure proper living conditions for farm workers. The conference went on to resolve that the acquisition of state land, as well as the making of deliberate interventions to reverse apartheid settlement patterns and develop nonracial human settlements, had to be speeded up.
As part of the integrated approach, the new Ministry of Rural Development and Land Reform - working together with the Ministry of Economic Development, the Ministry of Co-operative Governance and Traditional Affairs, and the Ministry of Human Settlements - will have as one central task the development of rural economies so that sustainable communities in rural areas can benefit equally from the theory of human settlements. In this context, agrarian reform that links human settlements to land redistribution; the development of co-operatives; support in agricultural programmes for the rural masses; and the production of food will be brought in so as to bring about food security in these rural human settlements. This will also address the migration of the rural masses to urban areas, which distorts both social and economic development in the rural areas.
The concept of human settlements is based on the premise that housing provision should promote the building of integrated and sustainable communities. The finalisation of the Land Use Management Bill in line with the concept of human settlements will be an indication that active steps are being taken to ensure that human settlement formation does not perpetuate apartheid spatial planning and the marginalisation of the poor from economic opportunities, as well as social and cultural amenities.
The concept of human settlements was set off on a strong path by critical resolutions passed at the 52nd national conference of the ANC. Areas that were taken into consideration were the following: adoption of a central planning approach for directing resource allocation; distribution and overall co-ordination of a response to human settlements; restructuring of funding mechanisms and consolidation of all housing-related grants and funding streams; and acceleration of land acquisition through a dedicated housing development agency.
The resolutions went on to state that there should be housing cover for veterans of the struggle. A policy for military veterans has already been approved. Military veterans - single veterans too - now have priority access to both the normal subsidy and the social housing subsidies. A list of military veterans needs to be finalised and the SA National Defence Force is now working towards implementing the decision of Cabinet to achieve a broader programme that will include job creation. This is work in progress and, as the portfolio committee, we look forward to the SA National Defence Force fast-tracking this process.
The Department of Human Settlements has identified mega projects which have been elevated to national priorities. These projects include N2 Gateway in Cape Town, Zanemvula in Nelson Mandela Metro, Lerato Park in Sol Plaatjie, and Klarinet in Emalahleni. These projects promise to deliver thousands of houses in sustainable... The ANC supports the Budget. [Time expired.] [Applause.]
Mr A C STEYN
Ms B N DAMBUZA
Mr A C STEYN: Chairperson, the Minister not only delivered my speech but he also took my time, so I shouldn't need this! However, he did ask for us to be candid and I hope I will not disappoint him.
Ten months ago, I stood in this House and expressed my wish that the appointments of Minister Sexwale and Deputy Minister Zoliswa Kota would finally lead to the creation of sustainable communities. Today, it may be too soon to pass judgement on that wish. I would very much like to give them the benefit of the doubt.
Last year, like today, the Minister was at pains to describe the concept of human settlements. In policy terms, nothing has changed since then. However, to date, nothing much has changed as far as the implementation of those policies are concerned either. Again, it may be too soon to expect to see Human Settlements in the place of Housing, as we have come to know it over the past 15 years or so. Is it too soon to expect to see the planning of future developments take cognisance of the concept of what will constitute a human settlement? Apparently, it is.
Hon Minister, please correct me if I am wrong. When planning takes place for the budget process, the Division of Revenue Act requires the compilation of a business plan that is linked to the Integrated Housing and Human Resettlement Development Grant. Since the national department does not deliver any houses, its business plan must be supported by and consist of the nine provincial business plans. I would imagine that, during the last quarter of the preceding year, the provincial departments would need to submit their business plans and that these would contain the details of the projects to be undertaken on which their budgets, or expected budget allocations, were to be spent.
For example, the business plans for the budget that we are debating today should have been finalised during the last quarter of 2009. In any case, housing development normally spans over a period of two, three or even four years, and some projects are, therefore, carried over in the business plans from one year to the next. How is it possible, then, that as at the end of last month, four out of the nine provinces had failed to submit the business plan to your department for this new budget? Free State, KwaZulu-Natal, Limpopo and Mpumalanga could not provide your department with details of how they planned to utilise their budgets.
The other, related concern is the fact that most of the priorities of the business plans that have been submitted are not in line with the priorities set by the national department. Now, if we can't manage the relatively simple task of planning for projects within the department only, how on earth are we eventually going to end up with decent, well-planned and integrated human settlements that will involve all the departments required to make this a reality, as envisaged not only by the hon Minister but, I dare say, by all of us in this House?
In this regard, may I remind the House of the statement made by the hon Deputy Minister in her budget speech in the NCOP last year? She said:
We are unapologetic in asserting that planning together, budgeting together and co-ordinating together remain the prerequisites and non-negotiable for the realisation of integrated human settlements.
This is a sentiment I fully concur with, but it does not appear to be within our grasp.
On 24 May 2006, the then Minister of Housing, the hon Minister Lindiwe Sisulu, made a statement that informal settlements across the country would be eradicated by 2014. While we all knew that this was a pipe dream, we chose to err on the side of the impossible because that was what we wanted.
Little progress has been made since 2006 and the Ministry was unusually quiet about the progress on this front, until President Zuma mentioned in his state of the nation address that:
We are working to upgrade well-located informal settlements and provide proper service and land tenure to at least 500 000 households by 2014.
This figure has since been confirmed by the department in their strategic plan. The eradication target by 2014 was announced amidst much fanfare. By contrast, the revised target of only 500 000 by 2014 has slipped in quietly like a thief in the night. No explanation or detail of a revised date was given. Perhaps a new date for the eradication of all informal settlements will be announced next year, considering that it will be an election year.
While not much has been said about the eradication of informal settlements, there has been much talk over the last year of the rectification of badly built Reconstruction and Development Programme, RDP, houses. Almost every province will have an allocation towards this programme, which is a complete waste of resources.
What is never mentioned in this regard is the fact that we have an agency established especially to prevent shoddy workmanship from taking place in the first place. This agency is called the National Home Builders Registration Council, NHBRC, and it came into life under the auspices of the Consumer Protection Act of 1998.
Admittedly, not all the defective RDP houses were required then to be registered with the NHBRC. Therefore they were not subjected to the inspections. However, a large number were, yet nobody has asked why these defects were not identified and corrected at the construction stage, rather than years later. Perhaps this oversight should be included in the investigation of corrupt builders and officials who may have been in cahoots with these contractors.
The involvement of politicians and officials doing business with government has come under intense scrutiny in recent weeks, particularly where there is a clear conflict of interest. I believe there has been widespread agreement that this is an unacceptable situation.
I have to ask the hon Minister, therefore, if he is or has been aware that – I believe he is not the acting CEO anymore but the CEO of NHBRC – the CEO has also entered into an agreement with the Gauteng Department of Housing to construct 1 431 RDP houses at an estimated total cost of R78 million. Surely this represents a gross conflict of interest? The head of the institute that must monitor the quality of houses is building houses for government. If you are aware of this, hon Minister, you must inform this House why he has been allowed to do that and retain his very senior position in the agency.
In fact, I have learnt that his acting position has now been confirmed and he has been appointed, since 1 April 2010, as the CEO. If not, hon Minister, then we expect that you will take immediate action. Whatever the case may be, I nevertheless call on Mr Sipho Mashinini, the CEO, to resign his position immediately.
In a recent presentation to the portfolio committee by the NHBRC, Mr Mashinini replied to a question from me and added the very noble statement at the end of his reply. He said: "It is the right thing to do." Well, Mr Mashinini, resign from the NHBRC with immediate effect because it is the right thing to do. [Applause.] I trust that the Minister will give political leadership on the basis of sound principles and good governance, as he promised when he took office.
The DA welcomes the initiative taken by the department of the R1 billion Guarantee Fund, aimed at bridging the housing finance gap in the middle-income market. I am also encouraged by the Minister's assurance that the fund will not be used for irresponsible lending practises. While this initiative will undoubtedly stimulate the demand side, it is still unclear to me how it will motivate developers to increase the supply of affordable – and I emphasise affordable – housing to this market. Basic economic principles dictate that when demand increases in the absence of adequate supply, the price will inevitably increase. The so-called affordable homes currently on the market average R400 000 for the most basic house with two bedrooms and one bathroom. They are often without any cupboards, perimeter fencing or wall and, in some instances, no floor covering. These are all necessities that any new home owner needs and will require additional finance from an already overstretched borrower. Therefore I plead with Minister Sexwale and his task team to look at ways to stimulate the supply side of affordable housing for this market as well, otherwise this initiative will fall flat.
I want to take this opportunity to call on all the home owners out there who have problems with the NHBRC as far as conciliations are concerned - because I've been flooded by queries – to contact me so that we can put together a dossier and see exactly what the extent of this problem is. It would appear that the NHBRC is not doing the job it is supposed to be doing. The inspectors are either not inspecting or they don't know what to inspect for. Once again, I call on home owners to contact me in this regard, so that we can assist them but also assess the extent of this problem. I thank you. [Applause.]
Mr T BOTHA
Mr A C STEYN
Mr T BOTHA: Chairperson, the building of sustainable human settlements will be more meaningful if apartheid patterns of city and town planning are reversed from urban sprawl to higher densities. Such a reversal would have both economic benefits to the beneficiaries and maximise the use of existing infrastructure.
The development of human settlements, including the in situ upgrading of informal settlements, has to be informed by the economic development plans of the country. The mandate of the Housing Development Agency, HDA, to acquire suitably located land for human settlements is encouraging, especially where state-owned land is being prioritised. However, if government continues to allow the sale of state-owned land at market-related rates to the HDA, this programme too will fail.
The establishment of the Credit Guarantee Insurance Fund should be welcomed as it is likely to stimulate the housing market in South Africa. It is our view, however, that if our economic growth fails to create jobs, the default rate could remain high and thus produce distortions within the economy. There may be an oversupply of housing stock but the demand may be muted, thus creating reliance on social housing.
Similarly, the prioritisation of human settlements development projects ought to be informed by the economic development plans of the country and migration trends. It seems a waste of state resources to build houses in areas where there are no economic activities. In some rural areas or towns, houses have been built but remain empty and vandalised, while the potential beneficiaries have moved on to areas where there are prospects of employment.
These trends lead me to the issue of the appropriateness, or lack thereof, of the housing stock the country produces and some of the delivery forms used. It is good and well for the government to argue that a shift from quantity to quality is the reason the quantum of housing stock being build is shrinking. But it should not be forgotten that R1,3 billion of this budget will be spent on repairing and rebuilding houses that are falling apart due to poor workmanship by contractors.
Second, it is evident from the business plans produced by the provinces that there is a misalignment between the national budget and the provincial plans, and, in turn, between the provincial plans and the municipal budget cycle. This can result in underspending, misappropriation in the allocation of funds, or fiscal dumping. This misalignment is caused by inadequate co-ordination between the national departments and provincial departments. For example, while the state of the nation address refers to the upgrading of 500 000 units by the year 2014, the provinces allocate only about 6% of their total budgets to this segment, instead of a possible 25% required to meet this target.
Furthermore, the construction of rental housing stock for the lower end of the market has become an absolute necessity. This will address the plight of those who have already benefitted from the housing programme elsewhere but have migrated to cities in search of work. The state must also create instruments that will encourage citizens to participate directly in housing development initiatives, such as housing co-operatives and housing associations, to promote different forms of ownership.
This country is heading for a major crisis, because property is changing hands without the sellers and buyers following the necessary legal requirements of registering their transactions in the Deeds Office in order for the legitimate owner to have the title deed. If this situation is allowed to continue, it will defeat the intention of converting these houses into valuable assets which can be inherited by our children and our grandchildren.
Owning a house without a valid title deed is like driving a car without a driver's licence. Sooner or later you are going to crash and lose value, because the use of your asset is neither insured nor is it an asset you can use as a surety once a problem arises. I urge the Minister to please pay attention to this urgently. With this in mind, we support this Budget Vote. [Applause.]
Mr B W DHLAMINI
Mr T BOTHA
Mr B W DHLAMINI: Hon Minister, the Chairperson, Ministers present, Deputy Ministers and colleagues, one of the problematic issues in the unavoidable urbanisation process in South Africa has been the provision of adequate housing for the increasing urban population.
Millions of hardworking South African families struggle to find homes within their budgets. They are often forced to commute long distances, live in substandard housing or in overcrowded conditions, due to apartheid's spatial planning and the lack of a massive state-led housing programme, as you have just said, Minister. President Zuma himself has travelled the length and breadth of the country and visited poor communities that have been engaged in service delivery protest. He saw the hardship that people face.
When former Housing Minister Lindiwe Sisulu unveiled the Breaking New Ground policy in 2006, she announced that its aim was to eradicate informal settlements by 2014. In practice, however, the policy is leading to an increase in the number of unserviced shack settlements across the country. This is the result of natural population growth, escalating urbanisation and the growing influx of asylum seekers in our country. To put it differently, the crisis is not the lack of urban housing but the lack of real, substantive rural development. The crisis is a lack of jobs and support for rural people. If South Africa focused its energy on rural development, the poor and desperate would not flock to urban slums, seeking a better life in big cities.
Provinces like KwaZulu-Natal and Limpopo still have more than 60% of their population living in rural areas. The IFP has always maintained that government clearly needs to focus on rural planning and begin to address rural development more meaningfully. We are proud that in his Budget Speech the Minister of Finance, Pravin Gordhan, started to identify the need for greater spending and better co-ordination in rural development.
After taking office in 2009, hon Mr Sexwale's admission of shortcomings in his department was a good starting point, and we applaud and commend that. The Minister was referring to the frequent allegations of corruption in the housing sector, in which houses were left without roofs, water schemes were breaking down, roads were crumbling in wet weather and corruption was taking place with waiting lists, etc. For example, housing delivery in Cape Town has been hampered by the spat about the N2 Gateway project. In the Auditor-General's report there were lots of deficiencies that amounted to illegalities in the construction of Phase I. The national housing backlog is estimated to stand at 2,1 million houses, affecting about 12 million people. Up to 60% of this backlog is in urban areas.
The budget allocated to housing and community amenities has increased with 14% from R81 billion to about R93 billion in the current year. The additional R1 billion to assist middle-income citizens is welcomed by the IFP. However, considering the enormous housing backlog and the challenges of rapid urbanisation, we in the IFP think that the amount should have been more.
The current housing budget is only 1,5% of the gross domestic product, GDP, as opposed to the developing countries' norm of 5%. However, since 1994, we have not been able to reach even the target of 3%. Therefore we are asking for more from Mr Gordhan. If the housing crisis is not mitigated, if we don't get more money, our beloved cities will face more crime, overcrowding, deteriorating health condition and abuse of women and children. Housing, Minister, is a human right, as the committee chairperson has said.
In the Constitutional Court judgment of Government of South Africa and Others v Grootboom and Others, 2001(1) SA 46(CC), the court noted that the Constitution obliges the state to act positively to ameliorate the plight of people living in deplorable conditions in the country. The state must provide access to housing, health care, sufficient food and water. The court stressed that all the rights in the Bill of Rights are interrelated and mutually supportive. Human dignity, freedom and equality are denied to those who are without food, clothing and shelter.
This brings me, hon Minister, to the issue of hostels. This is the 10th Budget Vote on Housing and, lately, Human Settlements, in which I have participated. Every year I raise the plight of hostel residents in the public hostels. From the bottom of my heart, I really appreciate your intervention, Minister, in this issue - your visits to the hostels and your statements - but they are not enough, unfortunately. They must translate into producing policy to deal with this legacy of the apartheid influx-control law. A combination of bold policy decisions and budget is required to enable the state to deal with these unique situations once and for all.
IsiZulu:
Kuyihlazo Mhlonishwa ukuthi uma uMametsha esuka ePhalaborwa eza eGoli ahlale emkhukhwini e-Alexandria, bese kuthi uMshaka asuke Emlazi azohlala ehositela eSoweto.[Time expired.]
English:
The IFP supports the Budget Vote. Thank you. [Time expired.] [Applause.]
Mrs V BAM-MUGWANYA
Mr B W DHLAMINI
Mrs V BAM-MUGWANYA: Chairperson, hon Minister of Human Settlements, other Ministers present here, the Deputy Minister of Human Settlements, fellow comrades, ladies and gentlemen...
IsiXhosa:
... molweni nonke. Kumnandi ukunibona nilapha.
English:
The Freedom Charter of 1955 states that South Africa belongs to all who live in it, black and white. It goes on to say:
...recognising that our people have been robbed of their birth right to land, liberty and peace by a form of government founded on injustice and inequality.
After the 1994 historic transition to democracy, the ANC-led government realised that it was necessary to overcome the fragmented housing regime. It had to start delivering housing immediately because this had reached crisis proportions. This democratic government had inherited a critical housing shortage, with a backlog of more than 2,2 million units.
However, from 1994 to 2008, 3,1 million housing subsidies were approved and 2,3 million units were completed. This meant that 9,9 million more citizens could access state-subsidised housing opportunities. Notwithstanding continuing challenges, there has been a marked increase in the budget allocation for developing sustainable human settlements and eradicating informal settlements. Expenditure on housing service delivery increased from R4,8 billion in the 2004-05 financial year to R13,5 billion in 2009-10.
Over 570 housing projects have been approved and housing grants totalling R12,4 billion have been allocated for 2009-10. This translates to the construction of 226 new housing units across all nine provinces. In December 2009 it was reported that since 1994 government had built 1,4 million housing units, providing more than 5 million people with secure homes.
But while much has been done, with the competing demands of affordability and quality becoming almost insurmountable at times, the ANC does not rest on its laurels when it comes to improving the lives of our people. We continuously plan, discuss, debate and implement programmes to physically demonstrate to our people that we, the ANC-led government, care. For example, as far as housing is concerned, the ANC's 2009 national conference in Polokwane recommended that government should, among others, intervene in the housing industry and residential property market to curb the spiralling cost of construction input prices, including the cost of development and supply of building material; restructure the funding mechanisms; consolidate all housing-related grants and funding streams; and transfer redundant land belonging to state-owned enterprises and municipalities for low-cost housing.
Although some of these proposals will bear fruit in the future, some of them have immediate effects on the housing shortage and the combined outcome is that they will eventually bring the comfort of an own home to each and everyone of our citizens. What is important is that we should relentlessly and resolutely advance our efforts until that goal is attained. In order to eradicate informal settlements by 2014, some 500 000 new units a year must become available. A cause for concern is that if we continued with the current trend in the housing Budget it would lead to a funding shortfall of R1,2 billion in 2012, which would increase to R253 billion in 2016.
Another matter of concern is the reconstruction of RDP houses that have been found to be uninhabitable due to shoddy and poor workmanship. The quality of some of these houses did not meet the required standards and, as a result, they began to collapse. There are approximately 40 000 defective RDP houses nationwide that require rebuilding at a cost of approximately R1,3 billion. The R1,3 billion is about 10% of the department's annual budget. This will obviously have financial implications for the department's ability to deliver more houses as fast as it would have liked.
Some of the problems identified by the department as having a direct bearing on housing delivery are: the repeated engagement of the same bad contractors...
IsiXhosa:
...ezinxuswe ngabantu abasemasebeni ezipokothweni zabo...
English:
... housing programmes that have been delayed for long periods; people who have been on the waiting lists for years; RDP houses that are being sold illegally; and the abuse of waiting lists by government employees and councillors.
As pledged by the President in his state of the nation address, government continues to combat corruption in both the public and private sectors because it poses a serious threat to our struggle to build a caring society. The ANC-led government, using its Special Investigating Unit, SIU, machinery, has embarked...
The TEMPORARY CHAIRPERSON (Ms M C MABUZA): Hon member, unfortunately your time has expired.
Mrs V BAM-MUGWANYA: I beg your pardon?
The TEMPORARY CHAIRPERSON (Ms M C MABUZA): Your time has expired. Thank you.
Mrs V BAM-MUGWANYA: So soon! [Laughter.] I support Budget Vote No 30: Human Settlements. [Applause.]
Mr J J MCGLUWA
Mrs V BAM-MUGWANYA
Mr J J MCGLUWA: Chairperson, housing remains a contentious issue for us as millions of households in South Africa have inadequate shelter. My question is: Will we be able to cut into its 10-year backlog, as the Minister has mentioned in his speech? We would like to assure the Minister that we remain positive. This department is faced with the undesirable task of a set of demands that far outweighs government's capacity and resources for delivery.
During the Budget Vote hearings we were told by the Rural Housing Loan Fund that they needed ministerial intervention because of the fact that they didn't have a CEO. Minister, if the hon Steyn is correct and there was intervention and an appointment, we would like to congratulate you because this institution has been without a CEO since August 2008.
The ID is concerned about the snail's pace of the accreditation process for municipalities. The reason given to us was a lack of capacity. However, this is also slow in high-capacity municipalities.
Corruption is one of the biggest challenges in housing. The Greenfield project in Tlokwe in the North West, where a company was awarded a R140 million contract to build 1 000 houses, of which 415 were not enrolled at the offices of the National Home Builders Registration Council, NHBRC, is an example of this. This kind of disregard for procedures compromises the quality of houses and also expands the cloud of suspicion hanging over contractors. The ID also applauds the NHBRC for not approving these houses due to the contractor's failure to enrol them, despite the rumoured political positions of the contractor's owners.
The Department of Human Settlements in the Northern Cape has failed the Siyanda district, the second-largest district in the province, as far as servicing sites and building of houses is concerned. The ID would like to see a more transparent and equitable process.
The migration of people from one province to another is also of great concern to us. Gauteng and the Western Cape are mostly affected by this and there is a desperate need for a central housing database that prevents ownership of government houses in more than one province.
Hon Minister, you have the ID's support for the promise that your department has made to clamp down on the sloppy work of contractors. You also promised to act against corruption when you said, and I quote, "Watch this space". We are watching this space, Minister, and today you have shown that you are a man of your word as far as these actions are concerned. [Applause.]
Minister, at one time you shared with us your horrific experience of children playing with condoms along a dumping site next to a human settlement, and of children having to cross a street filled with human waste when going to school. We cannot allow a situation where contractors have the luxury of sleeping comfortably and having nice food... [Time expired.] The ID supports this Budget. [Applause.]
Adv A D ALBERTS
Mr J J MCGLUWA
Adv A D ALBERTS: Speaker, die Departement van Menslike Nedersettings se nuwe holistiese benadering tot die skep van volhoubare behuising is sinvol. Hierdie departement het wesenlike uitdagings en daarom is dit goed om te sien dat daar nouer saamgewerk gaan word met provinsies en plaaslike owerhede, ten einde die komplekse probleem van behuising aan te spreek.
Die VF Plus wil graag die volgende sake, wat 'n wesenlike invloed op begroting en diensverskaffing het, onder die aandag van die Minister bring:
Eerstens, behuising is 'n multi-dimensionele probleem vanuit 'n groeiende gemeenskap met 'n aanvraag wat alle redelike vermoë tot lewering oorskry. Die departement se strategiese oorsig noem dan ook dat deel van die departement se verantwoordelikheid die geweldige groei van informele nedersettings is. Behalwe vir natuurlike aanwas is die grootste drywer agter dié groei die porieuse toestand van ons grense en die toestroming van onwettige immigrante na Suid-Afrika en nie, soos die Minister voorheen genoem het, die onwettige uitsetting van plaaswerkers nie.
Ek is bly die Minister het die misverstand met my partyleier, die Adjunk-Minister van Landbou, Bosbou en Visserye, Dr Pieter Mulder, uitgeklaar. Om die onbeperkte groei van informele nedersettings aan te spreek, sal die Minister en sy departement eerder met die departemente van Binnelandse Sake, Verdediging en Polisie moet konsulteer. Hulle moet dan 'n interministeriële plan opstel, ten einde die invloei van onwettige immigrante te stuit en slegs dié te huisves in terme van ons internasionale regsverpligtinge. Dit is 'n saak wat met die nodige politieke wil en fokus aangepak moet word.
Tweedens wil ons die Minister vra om ook ag te slaan nie net op die skep van nuwe behuising nie, maar ook op die instandhouding van bestaande maatskaplike behuising. In daardie verband sal dit sinvol wees vir die departement om te skakel met plaaslike owerhede, en veral die metropolitaanse owerhede in Gauteng, rakende die instandhouding van maatskaplike behuising wat aan hulle behoort.
Gedurende die tydperk waarin ek as raadslid in die Johannesburgse metropolitaanse owerheid gedien het, het ek seker 80% van my tyd gewy aan probleme met betrekking tot hierdie tipe behuising, wat in die meeste gevalle alles behalwe leefbare wooneenhede is. Dat die munisipaliteite traag is om hierdie behuising te onderhou, is inderdaad 'n oorskatting. Daar bestaan so te sê geen politieke wil tot onderhoud nie, in so 'n mate dat telkens met hofsake gedreig moet word om dienslewering te verseker. Ons vra, derhalwe, dat die Minister ook hieraan aandag sal skenk.
Derdens, van die metropolitaanse owerhede het ook besluit om van die maatskaplike behuising aan bewoners te verkoop. In Johannesburg is hierdie koopkontrakte al sedert 2000 met inwoners gesluit, maar tot op hede is nog nie een stuk behuising se titelakte oorgedra nie. Die verskoning wat Johannesburg Metro aanbied, is bloot dat hulle nie geld vir oordragte van behuising het nie. Dit is onaanvaarbaar en ons wil van die Minister weet of hy ook op 'n holistiese basis regoor Gauteng provinsie hieraan aandag kan skenk. Verdere vertragings in hierdie verband sal lei tot openbare opstand en regsaksies, wat teenkonstruktief sal wees vir alle partye hierby betrokke, maar meer so, vir die regering.
Laastens, die VF Plus wil die Minister en sy departement gelukwens met hul suksesse in die stryd teen korrupsie. Dit is inderdaad 'n bemoedigende teken. Ons wil ook die Minister se aandag op 'n verdere vorm van misdaad vestig. Raadslede het, ten einde polities-gedrewe demografiese verskuiwings te maak, op 'n bedrieglike wyse onontwikkelde grond wat nie aan hulle behoort nie, aan ongesofistikeerde, arm mense verkoop, waar hulle hul dan gaan vestig, met informele nedersettings as die eindresultaat. Dit blyk landwyd 'n groeiende probleem te wees. Dankie.
The DEPUTY MINISTER OF HUMAN SETTLEMENTS
Adv A D ALBERTS
The DEPUTY MINISTER OF HUMAN SETTLEMENTS: Chairperson, I want to respond quickly to Mr Steyn regarding the National Home Builders Registration Council, NHBRC. I am sure you are aware that the issue of protecting consumers is high on our agenda, and we urge the NHBRC to respond timeously, because if we respond timeously, we save millons of rands. The matter is high on the agenda of the department, and we will deal with these matters and some of the issues you have just raised with the NHBRC.
With regard to the issue raised by Cope, we do understand that land from state-owned enterprises, SOEs, is given at market-related prices. We believe that matter is one we have been handling as government, because we believe these houses are meant for the people. So, we do not agree with the issue of market-related prices because the department does not have the budget.
The issue of hostels is work in progress and we will always be in agreement with you on this. I just want to assure members that we stand together on the issues of human settlements. Your robust oversight helps us to do more work in terms of our mandate as a department.
Chairperson, allow me to greet the Minister of Human Settlements, hon Tokyo Sexwale, the Deputy Ministers present and members of Parliament. It is my great pleasure to welcome the officials from the department led by Acting Director-General Dlabantu, as well as CEOs of housing institutions and all honoured guests and comrades. I salute the chairperson of the portfolio committee, Nomhle Dambuza, and the MEC in the Western Cape, hon Bonginkosi Madikizela.
This Budget Vote is taking place when all roads in South Africa are leading to the 2010 Fifa World Cup. This year, we will also be marking the 55th anniversary of the Freedom Charter, the historic document of our people. Once more, we reiterate our commitment, as Human Settlements, to making the aspirations of the Freedom Charter a reality. Our thanks go to President Jacob Zuma for giving us the mandate to be responsible for the entire housing market, when he proclaimed the Department of Human Settlements. Our ability to fulfil this mandate depends on us, as this collective, and all relevant stakeholders being able to work together.
It is the duty of government and leaders at all levels of society to provide the requisite resources and to make the necessary investment in order to provide sustainable human settlements. For that reason we call upon all sectors to contribute in whatever manner in order to tackle this mammoth task. Working together, we can do more.
Last year we acknowledged the importance of making the people an integral part of our planning and implementation. We are still firmly committed to this approach. It is the only way to make us realise our dream and the dream of many South Africans who are anxiously waiting to have a physical address.
Human settlement and the improved quality of households can only be realised and sustained through planning together and co-ordinating together. However, I believe that given the outcomes-based approach of this developmental state of the ANC, all departments are forced to plan and work together, including the provincial departments. Give us time. We will be able to arrive with that approach. That is our mandate and together, by following that approach, we can deliver on that mandate.
We have committed ourselves to moving away from the ethos of chasing numbers when we build homes for our people. Instead we are focusing more and more on the quality of the units we build. Ours is to build homes that we can be proud of; homes that will contribute to changing the lives of our people for the better.
The accelerated delivery of housing calls for the streamlining of our funding mechanisms, as the committee chairperson has said. All housing grants, namely the Provincial Infrastructure Grant and the Municipal Infrastructure Grants, the PIG and MIG, must be consolidated into a single grant. This means there is a need for more effective co-ordination as far as land development, the provision of bulk infrastructure, servicing of the land, transport and social amenities are concerned.
One challenge we face, as the hon member for Cope has said, is the fact that the land that comes from state-owned enterprises is being acquired at market-related prices. This has, indeed, put an extra burden on the Human Settlements budget, and it leads to delays in building houses in well-located areas. Our mission as Human Settlement includes integrating our communities by bringing people closer to their places of work.
The Minister has spoken at length about the new mandate that we are now all about: giving our people a complete product of good quality - that is, a house that is near social amenities. After all, this is what you and I always consider when we are buying a house or looking for a place to rent. In other words, in this process, we must move away from the apartheid spatial framework, where houses for the poorest of the poor were built on areas far from towns. Our call is to develop megacities, as envisaged in the Breaking New Ground, BNG, Strategy. Wherever houses are built, there should be clinics, schools, local economic development areas, community halls, etc.
It should be borne in mind that government-subsidised housing is indeed an asset creation. This is a value-added exercise in terms of socio-economic growth. Many families are being rekindled as they now have a place they call home. It brings back the dignity of our people. When building materials are bought and houses are constructed, this leads to a boom in the construction industry. In other words, human settlement provision enhances the development of manufacturing industries.
According to our Constitution and the Bill of Rights, all people have the right to adequate housing. In South Africa, there is a need to overcome historical imbalances. Over the years, our government has tried to protect the more vulnerable sectors in our society. This is done through the government housing subsidy. In so doing, we will continue to give our people hope as we take part in the war against poverty. Our participation over this weekend, when we joined the Anti-Poverty campaign in Lubala village in the Eastern Cape, led by the Deputy President, is a case in point.
As we carry this torch forward, we are committed to building partnerships with all those who are ready to hit the road running. As we dream of a South Africa free of slums, the Department of Human Settlements is calling on everyone to be agents of change in our communities and in our neighbourhoods. Let us cross this bridge of transformation together.
The building of human settlements is a public investment because it contributes, as I have said, to growth as a whole. Our goal is to ensure that we have permanent investment by making sure that our human settlement projects are of good quality and can stand the test of time. There is a need to do this kind of work in an integrated way. We have to make sure that it is intersectoral, leads to economic opportunities and job creation, and contributes to building social cohesion.
Unfortunately, the delivery of such homes cannot happen to everyone at the same time. These are the shared expectations of our people, which are legitimate. Therefore, in order to diffuse this situation, we will roll out the programme of the upgrading of informal settlements during this budget. We need the provision of water, electricity, refuse removal and roads. This will be the first step towards the final eradication of informal settlements.
As the Minister has mentioned, we have over 2 700 informal settlements across the country. As the national Department of Human Settlement continues with the enhancement of this upgrading programme, we have noted that slum organisations have become an important and permanent feature of human settlements policy. This is a positive step. The collective will of us as government and our people to eradicate informal settlements is needed.
Some of those informal settlements are situated in places that are not suitable for habitation. In cases such as those, our people need to understand the importance of relocating. This means that all those who have built their houses on river banks and on dolomitic land must be prepared to be relocated. When there is nothing wrong with where an informal settlement is situated, we will consider in situ upgrading. There is no need to uproot our people when we can improve their living conditions exactly where they are. Once again, the upgrading of informal settlements as a whole depends on the willingness of our people to co-operate with government.
We will remain committed to working with municipalities in ensuring the provision of basic services. This unfolding process calls on us to revisit the issue of land use management. Beneficiaries must be active participants in the human settlement delivery process. This can only happen if they are given an opportunity to do so.
The People's Housing Process, PHP, is a useful tool of community involvement. The homes that are built through the PHP are bigger and, in many instances, of better quality. There are many forms of PHP, one of which is managed PHP, in which a contractor or developer builds houses for beneficiaries. But what has been clear is that these houses are no different from the BNG or RDP houses. This not the best option, therefore. The PHP housing delivery programme is a programme where beneficiaries should be actively involved in decision-making over the quality and design of the house, and also be involved through saving.
The PHP has undergone numerous review processes in order to enhance its impact on housing delivery as well as to contribute to the creation of sustainable human settlements. The review process has brought with it an enhanced PHP policy framework, which outlines a plan for the development of sustainable human settlements and embraces the People's Contract as the basis for delivery. The People's Contract makes a clear call to communities to become a partner with government in the delivery process. In this regard, we will continue to empower our people through this housing delivery process for more meaningful participation. We have moved with speed.
We are now going to provide our people with the technical skills to build their homes. Further we urge provinces to ring-fence a portion of their budget allocation for the PHP. It would be of great significance if they could commit themselves to helping PHP formations around the country and encourage and support self-help initiatives.
One of the things we also suggest, and we think it is critical, is that there must be PHP units within departments. All PHP formations must enjoy equal support from the government. This will help us move with speed in delivering houses to our people. Our Deputy President put it into the right words during the anti-poverty campaign in the Eastern Cape last week when he said, "On matters that relate to service delivery, speed does not kill."
Social housing is also an important vehicle through which we can deal with our housing backlog. In this regard, we are also taking the ring-fencing route in our budget allocation for the development of affordable social housing units for our people. We appeal to provinces and municipalities to fast-track their planning strategies and finalise those land and stock audits so that we can move with speed on this one too.
Proper financial and technical support to municipalities should be central to the rolling out of this programme. We would also like to revisit the Treasury, Minister, regarding a once-off capital injection for the enhancement of this programme. In this process, we encourage provinces and municipalities to bear in mind the need for densification in order to deal with the issue of scarcity of land. Our goal is also to continue with the refurbishing of dilapidated buildings in the inner city, in order to begin integration in our society. Hence, we are proud of some inner-city development projects, such as Brickfields, Cosmos City and Emerald Sky, as examples of projects that need to be emulated.
As government, we will continue to support those contractors that build houses of good quality. Their participation in human settlement programmes enhances our ability to deliver on our mandate. It is equally important that the contractors are paid on time. Minister, we are happy to know that the provincial conferences on emerging contractors are under way as we speak. We hope these conferences will yield positive results.
From 21 to 26 March 2010, we had the opportunity to participate in the World Urban Forum held in Rio de Janeiro in Brazil. This conference was honoured by the presence of President Museveni of Uganda and the President of Brazil, Lula da Silva, who delivered the keynote address. Our participation in the conference indicated our commitment to sharinge our experiences in the building of houses for the poorest of the poor and to learn from international best practices.
The fifth session of the World Urban Forum focused on the theme of "Bridging the Urban Divide". According to UN Habitat, 227 million people across the globe have moved out of slum conditions since 2000. Unfortunately, the progress made in moving people out of slums has not been enough to counter the growth of informal settlements in the developing world. As a result, the absolute number of slum-dwellers has actually increased from 776,7 million in 2000 to 827,3 million in 2010. This means that 50,6 million new slums have been added to the new-world population since 2000.
Sadly, sub-Saharan Africa has the largest population, with 199,5 million, which means 60,17% of its urban population is living in slums. It is followed by Asia with 190,7 million, which amounts to only about 35% of its population living in slums.
I want to thank Dr Anna Tibaijuka, Executive Director of the UN Human Settlements Programme, whose tenure has since expired, for working with us in creating the African Ministerial Conference on Housing and Urban Development, AMCHUD. We have sent our congratulations as South Africa.
During our recent visit to Brazil, we also had the honour to stay in the same hotel as our national soccer team, Bafana Bafana. We assured them of our support and wished them well during their continued stay in Brazil. Bafana Bafana is ready to win the 2010 Fifa World Cup. We know that as South Africa we will win the game. [Time expired.]
Mrs G M BORMAN
The DEPUTY MINISTER OF HUMAN SETTLEMENTS
Mrs G M BORMAN: Chairperson, hon Minister, Deputy Minister, hon members and guests, 50 days to go – we are currently in the middle of much excitement over the Fifa World Cup. We have a daily countdown, people are wearing their T-shirts, and the relevant portfolio committees have been exercising their oversight to make sure everything is in place.
Last Friday offices opened for over-the-counter ticket sales. People who already had their tickets went along just to be part of the vibe. Yes, there were some problems but, as Danny Jordan pointed out, 53 000 tickets were sold in eight hours.
I was struck by a gentleman who treated himself to tickets worth R30 000 that day. Contrast that with the millions of people struggling to feed their families, people in the unemployment queue or sitting on the side of the road, hoping for somebody to give them a day's work. Every day we are confronted with the reality of millions who are unemployed, unskilled and desperate for work, which highlights the huge inequality in our country.
Nowhere is this more starkly revealed than in our informal settlements, where the cry of the people goes up: I need a job! I need a house! In this speech I will focus my attention on housing being a catalyst in the creation of jobs.
In his state of the nation address, President Jacob Zuma – this was referred to by the hon Steyn - said:
We are working to upgrade well-located informal settlements and provide proper service and land tenure to at least 500 000 households by 2014. We plan to set aside over 6 000 hectares of well-located public land for low-income and affordable housing.
Minister, the Department of Human Settlements, in rolling out this delivery, has the responsibility to contribute substantially to the creation of jobs, both directly and indirectly, in the economy. This portfolio committee – under our very capable chairperson - will exercise vigorous oversight over this building programme.
Decent work is the foundation of the fight against poverty and inequality. The creation of decent work and sustainable livelihoods is central to the ANC-led government's agenda. The 2010 Budget acknowledges that people want action on jobs, growth and poverty and that a new common purpose must be established so that all the talents, skills and resources to tackle socioeconomic challenges can be used to improve the lives of all our people.
The ANC believes that good-quality employment remains the best option for our country. We will continue the major job opportunity programmes through the expanded Public Works Programme as a key intervention.
Our focus on employment is based on our understanding that while grants are important to stabilise society and support educational and job-search outcomes, the sustainable transition out of poverty, particularly for the young, will be in widening opportunities for employment.
The 2009 National Housing Code states that:
The extended public works programme gives effect to government's commitment to address unemployment and increase economic growth. As the housing sector represents a substantial contributor towards employment creation and economic growth, the housing programme has been aligned with the objectives of the Extended Public Works Programme.
In his state of the nation address, President Zuma announced that government is planning to spend R846 billion on infrastructure programmes in the next four years. A big slice of this will go into developing human settlements.
Last year, I asked Minister this question: How many (a) jobs will the department create towards the 500 000 envisaged by 2009; and (b) will be sustainable jobs? His response was as follows:
By the end of the specified period, the department is expected to have delivered 170 000 houses. In the process of that delivery, 44 015 direct jobs will be created, whilst 41 069 will constitute indirect jobs. Whilst the jobs are created for the duration of the construction period, skills gained in the process can be utilised beyond this period. The direct jobs emanate from the direct construction of houses while indirect jobs are created through spill-over effects of our investments to other industries like material suppliers, etc. Altogether 85 084 jobs will be created when combining both direct and indirect jobs.
Servicing sites, building houses, schools and clinics, constructing roads and sidewalks, laying pipes for electricity and water, painting, digging, carpentry, plumbing and greening the new developments must result in substantial job creation.
The problem is that many people living in informal settlements have never had a job since they left school and are unskilled or semi-skilled. Emerging contractors will arrive on the job with nothing - no tools, no ladder and no scaffolding. In fact, many of them do not have a clue about building.
When I was a ward councillor in Durban – not long ago – the Cato Crest informal settlement fell under my jurisdiction. The first 40 houses we delivered were a shocking mess, I am ashamed to say. Windows and doors were badly fitted. Floors and walls were uneven. Rubble was piled up outside the door. There were broken handles on windows and broken window panes. The message was loud and clear; it seemed to say that we did not care.
However, the fact is that these contractors need our support, training and proper skilling. As Parliament we will be far more vigilant in the quality of housing we are delivering, and as the portfolio committee we have committed ourselves to regular oversight visits and going to see for ourselves.
It cannot be business as usual, Minister. We need to find a new way of ensuring that people benefit from the programmes in place to gain skills and that we develop a people with a passion for work, people who will take pride in the work they do, whether that is digging a hole, building a house or building a stadium.
Minister, it is good that you have been doing audits and holding people to account but for us to end up with having to rectify 40 000 houses is not acceptable. Quite apart from the waste of very limited resources and the 1,2 million people who are still waiting for their first house, it is a huge inconvenience for the beneficiaries.
The human settlement portfolio committee has spent a considerable amount of time engaging with the department, making sure that the Budget and the targeted delivery align with the programmes in the provinces and municipalities. The result is that we now have a document with outcomes that we as Parliament will be able to monitor responsibly.
In his state of the nation address President Zuma recalled these words of Madiba, spoken on his release:
I stand here before you not as a prophet but as a humble servant of you, the people. Your tireless and heroic sacrifices have made it possible for me to be here today. I therefore place the remaining years of my life in your hands.
Commenting on these words, President Zuma said:
These words inspire us not to rest until we achieve the ideals of a society free of poverty and deprivation.
Minister, human settlements has a huge build programme and must play a major role in creating jobs and providing people, particularly young people, with the requisite skills so that they too will contribute in a meaningful way to the growth of the economy. Working together we will achieve the ideals of a society free of poverty and deprivation.
The ANC supports the Budget Vote. [Applause.]
Mrs C DUDLEY
Mrs G M BORMAN
Mrs C DUDLEY: Chairperson and Ministers, the ACDP welcomes the R1 billion Housing Guarantee Fund, enabling banks to give home loans to "in-betweeners". These are lower-to-middle-income earners who do not qualify for government subsidies to the poor and, until recently, were also "in-betweeners" in terms of education grants.
The ACDP has cautioned against continually disadvantaging people who are productive and responsible. This sector includes nurses, teachers, wardens, police officers and people in general occupations requiring responsibility and commitment.
An analysis of human settlements over the last financial year is a sad litany of performances not relating proportionally to increases in allocation, unexplained variations from the norm in third-quarter results instead of full-year reports, declines anticipated in performance - where there have been more than inflationary increases to prevent that, and an apparent omission of numbers of rental units.
Hon Minister, in November you said you were sharpening your pencil. In that instance, it was to root out corruption, and contractors and officials who built shoddy houses for the poor. You said a national housing audit, headed by the Special Investigation Unit, had been instituted to take a rigorous look at housing delivery from top to bottom, focusing on issues like fraud, delays, corruption, absentee contractors, ghost houses, shoddy workmanship and corruption around waiting lists.
We welcomed your zeal and look forward to the publication of the audit. We also congratulate you on the successes you have reported in this area, and perhaps that pencil would be equally well utilised in checking the department's sums, so that we can better evaluate the budget allocation to your department.
To accelerate the delivery of housing and integrated sustainable human settlements and to utilise housing delivery as a catalyst for major job creation and economic growth, the Department of Human Settlements' budget allocation for 2010-11 is R16,2 billion. This is an increase of 8,2% in real terms. The ACDP would like to see this as a positive, but in view of the backlogs and other realities, we doubt that this budget will make the necessary significant difference needed.
The ACDP notes that the 2010 state of the nation address pinpointed a critical role for the department in the provision of public infrastructure, particularly given that the expanded mandate incorporates sanitation. In addition, the need for well-located informal settlements, proper service, land tenure to a significant number of households, and key responsibilities in the Rural Development Programme were highlighted.
It is imperative for the department to acquire the expertise, procurement capacity and human resources needed. The ACDP welcomes the department's commitment to enhancing institutional capacity at provincial and municipal levels, through training and skills development, measured by the capacity to undertake roles and responsibilities within applicable standards.
Continued refinement of the role of municipalities in the housing delivery chain is necessary and a preliminary housing quality audit, to focus on the persistent and chronic problems in the delivery of quality houses and allocation of subsidies to nonqualifying beneficiaries, is critical. The ACDP will support this Budget Vote in the hope of a breakthrough in the delivery of housing. We wish you every success, hon Minister. [Applause.]
Mrs M N MATLADI
Mrs C DUDLEY
Mrs M N MATLADI: Chairperson, the Vancouver Declaration defined human settlements as "the totality of the human community, whether city, town or village, with all the social, material, organisational, spiritual and cultural elements that sustain it". The fabric of human settlements consists of physical elements and services to which these elements provide material support. The physical components comprise shelter, infrastructure and services. Thus, we appreciate that the Department of Housing has been renamed Human Settlements. It gives hope that the department shall be a comprehensive one that will not only look at housing or shelter but also at the necessary infrastructure and services needed in communities.
We must congratulate the department for having an unqualified audit. This sets a good tone. Nevertheless, the noncompliance with certain sections of the Public Finance Management Act on the N2 Gateway Project cannot be overlooked and should be addressed promptly.
It is also disappointing to note in the department's annual report that they have not reported on the department's performance with regard to its objectives, outputs, indicators and targets, as per the approved annual performance plan. Without this report, it becomes almost impossible to assess the extent to which the department has been successful in implementing its activities.
Research has shown a direct link between the provision of infrastructure, income growth and human development. Infrastructure has multiple links to poverty reduction; it can support income generation within households, increase productivity, decrease time needed for collection and transport of resources and other products. Infrastructure and service delivery can also improve access to health and education. The greatest backlog in infrastructure and service delivery is in the rural areas. South Africa has to make significant and accelerated progress in service and infrastructure delivery to meet national and international targets, such as the Millennium Development Goals.
The most critical threats to the sustainability of settlements in South Africa include water scarcity, energy crises, crime and the fear thereof, the Aids pandemic, growing poverty, institutional complexity, and underperformance and inefficiency in some parts of the public sector. We need to see a comprehensive plan that details how these threats will be addressed in order to attain sustainable livelihoods. We cannot continue to build houses and not think of recreation, not think of police stations, not think of health-care centres, because that is not building sustainable livelihoods. The UCDP supports the Budget Vote No 30: Human Settlements. [Applause.]
Ms N A MNISI
Mrs M N MATLADI
IsiZulu:
Nk N A MNISI: Sihlalo, oNgqongqoshe abakhona, osekela Ngqongqoshe abakhona, amalungu ePhalamende nezihambeli zethu.
English:
In terms of Maslow's hierarchy of needs, housing is a basic need. Therefore the creation of sustainable human settlements and the eradication of informal settlements remain at the forefront of the ANC's and the government's key strategic objectives.
The development of integrated human settlements is a critical element in the government's fight against poverty and in improving the quality of life of our people. A number of the ANC's 2007 conference resolutions have been implemented or are in the process of being implemented, including the establishment of the Housing Development Agency, HDA, legislation to address the proliferation of informal settlements, interventions to cap the cost of construction, and a central planning approach for directing resource allocation to human settlements.
Chairperson, we are committed to improving the quality of life of our people and to build stronger, better planned and sustainable communities. In this regard, the Housing Development Agency has been established to assist provinces and municipalities with the acquisition of appropriate land for human settlements development. It is tasked, among other things, with the responsibility to identify, acquire, hold, develop and release state-owned and privately owned land for residential and community purposes, as well as the creation of sustainable human settlements.
The rationale behind the establishment of this agency is that it would assist in cutting down the red tape that prohibits the acquisition of suitable land - something that will be very difficult for municipalities or provincial departments to do on their own. The Act provides for an agreement between the agency and the municipality, where a council lacks the capacity to acquire, hold, develop and release land for residential or community development.
Such an agreement will allow the HDA to undertake this task on behalf of the municipality. The agency will also be empowered to assist municipalities to complete unfinished projects. The agency's role to facilitate the rapid release of land is fundamental and key to the implementation of the comprehensive plan on the creation of the sustainable human settlements and will improve the efficient location of the human settlements. On the financial side, the agency will facilitate relationships between the housing departments attached to different spheres of government and the commercial banks, particularly in terms of the putting together, financing, and implementation of projects. The agency will also provide project management expertise in human settlements and facilitate development through accelerated and innovative project packaging.
There remains a lot of work to be done to ensure that development at the local level is properly planned, co-ordinated and integrated, but to date the HDA has already received the land and assembled a plan for six provinces and three metropolitan municipalities.
Approximately 70% of households in South Africa are currently excluded from access to housing credit through the formal banking sector. However, through the housing subsidy scheme, the lower 40% of households for which housing credit is not a viable option are provided with a housing unit.
The upper-income bracket of the subsidy scheme requires end-user finance to access a housing product. Thus, 30% of the South African population are underserved or unserved, because of the conventional banking sector being unable to service them due to structural incompatibilities, insufficient capacity in the emerging, increasingly successful but inadequately funded specialised lending sector, or insufficient focus by the government and the private sector on alternative forms of tenure.
Following intensive local and international research, the national Department of Housing, the predecessor of the present Department of Human Settlements, concluded that four mutually comprehensive and supportive approaches should be adopted in order to assist the underserved or unserved portion of the population to access housing. These were: a government initiative aimed at facilitating and encouraging the formal banking sector to increase lending to the lower end of the housing market, proactive steps to further the growth and development of the emerging alternative lending sector, a major initiative to stimulate the provision of housing under a variety of tenure options, and mechanisms to substantially promote and expand the amount of personal savings mobilised in the housing process.
In order to assist in the achievement of these objectives, and in addition to the role provincial government and municipalities play, the ANC-led government has established a number of national institutions with various roles and functions to facilitate the specific housing and housing-related needs of market.
Conscious of the fact that housing is one of the critical drivers and tangible indicators of progress and development in society, and painfully aware of glaring neglect and skewed spatial development patterns, the ANC government will continue to address the existing housing disparities and increase access to ensure and secure decent housing for all. It will do so by normalising the housing market through the implementation of various programmes and the strengthening of partnerships with financial institutions and the private sector. I support the Budget Vote. Thank you. [Applause.]
Mr A M FIGLAN
Ms N A MNISI
Mr A M FIGLAN: Mhlalingaphambili, ndiyakhumbula ukuba ukubekwa kukaMphathiswa kwesi sihlalo akuso kwaye kwabakho ingxakana ekhoyo, kuba kwakukho ukukhabana kwemidla kuba wayengumhlalingaphambili kuMvelaphanda. Kodwa ke ndiyabulela kuba wazibonakalisa ukuba ujonge ukusikhokela esisigqeba.
Uthe ke asakubonakalisa ukuba uyafuna ukusebenza kule ndawo akwabikho mntu umnyanzelayo ukuba asuke kwesiya silalo, ngoko ke ndifuna ukubulela ngaloo nkxaso. Okwesibini, kulombutho wabantu, i-DA ... [Kwahlekwa.]
English:
... that is called "fit for purpose". The Minister inherited a department marred by corruption, with housing delivery backlogs, shoddy workmanship on houses delivered, and severe underfunding – a problem that continues to grow exponentially. The Department of Human Settlements has said that in three years' time, R102 billion will be required to clear the housing backlog, a figure that will more than double to R253 billion in 2016. This is nearly 20 times the entire current annual housing budget. This is, however, not the only challenge faced by the Minister, as a significant portion of the entities under the Minister's custodianship are faced with problems.
The former CEO of the National Home Builders Registration Council, NHBRC, Phetola Makgathe, was suspended and had his contract of employment terminated for reasons that the Minister has yet to provide to the public. He was paid in excess of R1 million while under suspension and awarded a further R2,2 million before his disciplinary hearing was completed.
By not providing the reasons for the suspension of Mr Makgathe, the Minister continues to perpetuate the culture within the ANC where senior officials are suspended with full benefits and without reasons being provided. These officials then often remain on the payroll of their respective departments until their contract period expires. They resign before any action is taken against them, or settlement agreements are reached where they are paid huge sums of money for the remainders of their contracts. The platinum handshake that was offered to the suspended CEO of the bankrupt SABC comes to mind in this regard.
It is utterly concerning that R1,3 billion needs to be set aside for the repair of shoddily built RDP houses. This is money that could have been used to build 240 new RDP houses and help make inroads into the 2,1 million housing backlog.
Another issue of concern is the technically insolvent Thubelisha Homes. Although the institution was shut down at a cost of R241 million, the inefficiencies caused by the entity are still in existence. The issues facing the N2 Gateway project have still not been resolved. Of the 22 000 houses promised, only 821 have been built, a significant number of which still stand empty and are faced with structural problems.
A new scandal involving Thubelisha has emerged in KwaZulu-Natal. Only 140 homes were built in a project aiming for 3 300 low-cost houses in Ingwavuma. A draft report leaked to the Daily News paints a shocking picture of fraud, funds deposited into personal accounts and overpayments on the project amounting to about R150 million.
The DA waits with bated breath that the Housing Development Agency, HDA, which replaces Thubelitsha Homes, will not carry over its inadequacies. Currently the HDA's main role extends only to the acquisition of land for the purpose of the construction of houses.
I'm going to talk about the entity that is the Rural Housing Loan Fund, RHLF, which is also facing a number of problems. The fund was established as a section 21 company, with the mandate of providing affordable credit to low-income rural households. Underfunding from the department has been identified by the entity as a hindrance towards achieving this goal. Furthermore, the interest charged by the RHLF for the repayment of loans is perhaps a little too high. Should this amount be lowered, it could very well result in fewer defaults.
Another issue that requires the Minister's attention is the pre-emptive clause contained in RDP beneficiary housing contracts. In 2002 the pre-emptive clause was included to prevent people from selling their houses within eight years of acquiring them. This clause, however, is like a toothless dog. The Minister needs to put measures in place that will enforce the clause.
IsiXhosa:
Kodwa ke, enye into endiza kuyicela kuMphathiswa kukuba ize ingabavaleli abantu abathe bafumana amathuba okuphucula iindlela abahlala ngazo. Xa umntu efuna ukuthenga umzi kwenye indawo aze avumeleke kweso siqendu.
English:
The DA would like to encourage the Minister to continue implementing the People's Housing Project, PHP. Despite its many challenges, it encourages people to take part in the construction of their own houses. This program has an element of sweat, equity and empowerment and cultivates a sense of responsibility. [Time Expired.] [Applause.]
Mr M R MDAKANE
Mr A M FIGLAN
IsiZulu:
Mr M R MDAKANE: Mhlonishwa uDlamini, ngiyathemba phela uyazi ukuthi awuvuki ekuseni bese uxosha umsebenzi. Kunemithetho okufanele uyilandele. Ngaleyo ndlela akekho namunye onelungelo lokuxosha abasebenzi emgwaqeni. Ngaleyo ndlela-ke konke uMongameli ...
The TEMPORARY CHAIRPERSON: Hon member, you are not audible enough.
IsiZulu:
Mr M R MDAKANE: Ngiyathemba sesikhulumile ngayo lento. Siyavumelana nawe baba uDlamini ukuthi amahositela asesimweni esimbi kakhulu.
English:
Many of them are terrible. We urge the department to do something about these hostels. But there is another area that we sometimes overlook, namely privately owned hostels on the mines. We think the Minister must engage the mining sector to address the whole question of these single-sex hostels because they are horrible too. These issues should be addressed. We think it is very important.
Other hon members have raised matters that we have been discussing in committee and we have agreed with them. Therefore, I think I must just say, hon Chairperson, hon Minister and Deputy Minister, hon members, as we stand here to participate in this policy debate we would like to reiterate that ANC policies and programmes are intended to serve the purpose of pushing back the frontiers of poverty and underdevelopment.
The ANC policy on human settlements is rooted in the Freedom Charter, the policy document of the ANC, umbutho wesizwe, and the specific clause that says, "The people shall have the right to live where they choose, be decently housed and to bring up their families in comfort and security." This clause wonderfully embodies the ethos and intention of the ANC's concept of human settlements.
The conceptual shift of the ANC-led government from "housing" to "human settlements" arose because of the need for a new approach; a paradigm shift that went beyond housing. The shift is about homes. It is not just a change of name; it is about a change of mind-set, taking us from a new concept to concrete reality. This approach informs our response as the ANC to the development of human settlements. We are in the process of a fundamental paradigm shift and the consolidation of an approach to developing human settlement. The ANC's focus seeks to foster greater integration and the building of homes in secured living environments, where everyone will have access to basic supporting services and economic opportunities.
The most urgent priority is to ensure that settlement development and redevelopment is imbued with infrastructure such as clinics, schools, police stations, community facilities and economic-activity space within the vicinity of quality homes. The ANC-led government's task is to restore humanity and dignity, to address spatial inequalities, and to provide comfort and security for all South Africans.
Human settlements are vehicles for the promotion of sustainability and social cohesion, which promotes human solidarity. In considering this Budget Vote, we therefore have to conceive of Human Settlements as an anchor department that is fundamental to the social transformation of our society. It is a department that needs the necessary financial resources to build social cohesion and solidarity.
The ANC's approach is to see people as their own developers who have the necessary inner resources and initiative and who, working with Human Settlements, can defeat the stubborn legacy of apartheid housing and its spatial disfunctionality. This we shall achieve by planning and building human settlements in an integrated, coordinated and holistic way. These human settlements should be greened to create landscaped communities; nice places where people can live, learn and have leisure.
Human settlement is not just about the provision of houses, since such an approach will leave the community in the same economic and social situation as before. Underlying our theory of human settlement is an integrated approach which means that various Ministries and departments have to work together in the development of human settlements. The ANC has always emphasised that human settlement should ensure that communities are geographically located in areas that are environmentally safe, well above water lines, not on soil that has toxic attributes and well within easy commuting distances from work opportunities.
Since 1994 our country has been driving the project of nation building. Human settlements are a natural development of this project. It is true that the building of human settlements and the content that goes with them will achieve nation building because they are premised upon human solidarity and the practice of ubuntu. They contribute directly to the principles of the type of society we are trying to build - that is, a nonracial, nonsexist, democratic and prosperous society.
The ANC recognises that housing is a significant part of our economic development strategy, and that the resources devoted to the provision of houses will have to be consistent with the need to maintain microeconomic balances.
The prevalence of settlements and spatial disfunctionality and inefficiencies is a legacy of apartheid development. This is what is being systematically tackled today. The quality of settlements and neighbourhoods is central to the social transformation we are seeking to realise.
The Medium-Term Strategic Framework, MTSF, of the ANC and government places human settlements central to the achievement of two strategic priorities: expansion of social and economic infrastructure and building cohesive, caring, sustainable communities. The MTSF recognises that in order to address the severe stress that the social cohesion of South African society has suffered, homes that are decent, appropriate and sustainable need to be provided, within settlements. This means a new way of delivering human settlement that is developmental, internal, cohesive and able to interact with civil society, and a market to bring about economic development locally.
Through Human Settlements, we as the ANC are responding to two things: the need to restore humanity and dignity to the people, and building places where people can stay and learn. For this we need to build homes and the right environment.
We are confronted with the objective reality that there are large urban concentrations showing high productivity, yet we know the urbanisation process is far from over. The current pattern and trends of urban migration from rural to urban in search of economic activities is set to continue for many years and could grow into even more unfavourable spatial patterns, resulting in the economic marginalisation of the working class and the poor.
The patterns of population densities resulted from interactions between market forces and investment in transport and other infrastructure. Also significant is the fact that government regulations, taxes and subsidies often lead to unintended impacts on densities and spatial dispersion. For example, the housing subsidy programme's current design becomes a major factor in the dispersion of our population within our cities and metropolitan areas.
Most workers cannot afford to commute by individual car and the road infrastructure is simply not sufficient to handle traffic efficiently in our cities. Low-income households use various forms of public transport, in particular taxis, as a substitute for individual cars, because densities are too low and jobs geographically too dispersed to allow the use of mass transit efficiently. Low-income populations are dispersed in dense settlements distant from employment areas which are themselves dispersed. Public transport remains a problem and so taxis are currently the main means of transportation.
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon member, finish up within half a minute. Your time has expired.
Mr M R MDAKANE: Underlying our efforts to develop human settlements is our resolve to bring a better life to all the people of South Africa. The portfolio committee will do its oversight function with vigour and honesty, and we do trust that the Department of Human Settlements will respond with diligence and respect.
The MINISTER OF HUMAN SETTLEMENTS: Let me thank members for having participated in a positive manner in this Human Settlements Budget Vote debate. As usual, one finds that one is operating among people who provide constructive criticism. I would also like to thank members of our own Minmec - the Minister and the MEC's - because, in line with the Constitution, we exercised this mandate concurrently. Some of them may be absent today, but they played a role towards the implementation of our objectives.
I would also like to thank members of our top management, all of whom are here, for the effort they put in, because they are the ones keeping Human Settlements alive. We as political leaders are always driving to the ground to produce the numbers and statistics. They always remain at the rock face, implementing the work.
I would like to send special thanks to Mr Mziwonke Dlabantu, who is sitting there. He has been an acting director-general, DG, while also serving as the chief financial officer. [Applause.] I have good news for him, because he continued acting until today. This morning, Cabinet approved a new DG for Human Settlements. [Applause.] His name is Mr Thabane Zulu. I hope Mr Thabane Zulu will learn from Mr Dlabantu and also interact with all other parties, particularly as assembled within the portfolio committee.
We also have a new member, chief operating officer and deputy director-general, whose name is Mr Chainee. Many of you will know him. He is one of the key contributors to the first human settlements project in Gauteng, at Ekurhuleni. [Applause.] He was also approved this morning by Cabinet. Our team is now perfect at the top. I hope these members will respect the multiparty House, as assembled here, and work comfortably and constructively with members of the portfolio committee.
I would like us to appreciate the President's own personal involvement. Remember, we have now moved from housing to the expanded mandate of human settlements. The President has shown leadership. Two weeks ago, at the meeting of the Presidential co-ordinating council which was chaired by him, he proclaimed, as I indicated earlier, that we were going to have one special agenda item, which was Human Settlement's presidential co-ordination council, under his leadership. Members of the House are invited, not just to make the kind of statements that we made today but to bring constructive criticism because we believe that gives this department and the Ministry new wind. [Applause.]
I would like to assure the House that we are going to remain focused on the delivery of human settlements as our mission, with the understanding that the R16 billion you have just voted for here today will be well spent. Congratulations to all of you, because there was no dissent as far as this Budget Vote was concerned. [Applause.] The funds that we have voted for are not sufficient as a budget. As we all understand, the backlog keeps on multiplying exponentially. Human settlement is not merely about the budget; it is about the co-ordination and integration of all the efforts of all national government departments. Hence the personal involvement of the President is critical for us.
Since the extended Cabinet Lekgotla, every Minister has come to understand that you can't just build schools, police stations, universities and all other amenities, without considering where people are. Human settlements is about making sure that all these are consolidated, integrated and deracialised, so that our people can enjoy the comfort known by us. They need to know that their disposable income is not going to be consumed by transportation when they have to seek out amenities in places daar ver.
It is important for us to understand that beyond the considerations of budget, it is about integration and co-ordination, not only within the government department, but within all spheres of government. For example, we have to look at the national, provincial and the municipal infrastructure grant. How can we have all these grants, which are all supposed to be providing bulk services, without co-ordination? Therefore, the discussion of the Presidential Co-ordination Council, PCC, under the chairmanship of the President, coming on 18 May, is going to address all these issues. I hope we will be taking some of the positive comments made here to that meeting.
Let me assure this House about the stance we have taken on corruption. I will not respond to each and every thing that was raised here because our discussions are a work in progress. I am a member of your portfolio committee and I am ready to serve and give answers. Yes, corruption is endemic in South Africa and affects ordinary people. But you can rest assured that this Minister is not going to rest, hide behind the finger or just make general statements. That is why we have brought the Special Investigations Unit on board, led by Mr Hofmeyr. They are arresting top government members. By the way, the 1 500 people I referred to were from national and local government, and a few from provincial government.
It is a demonstration of seriousness when you call the police and when lawyers get arrested. I am saying that many more will still be exposed. We have now uncovered two major syndicates around housing lists, one in KwaZulu-Natal. I am not going to expose the other one, because we just found out about them today. We don't want them to clear their desks.
Please rest assured that the R16 billion we have voted in today is not going to be wasted. We will remain focused on cost control. You can see that in the amount of money that we reported on today; the amount we cut from the costs of travelling and all sorts of things. Such things will not be part of this Ministry. You can rest assured that this Minister is listening to your advice.
You can also rest assured that, even in the case of the chief executive officer, CEO, that you raised, we wouldn't like to infringe on the rights of people. I would like to believe that the board of that institution took the right decision, because that is not up to us. That is why there are boards. We will also look deeper into those decisions, to find out if things have been done correctly. Yet we are mindful of the fact that we don't want to damage people's names. If you have information, bring it to us. I am your colleague. Just walk across to my floor and provide it to me, then watch my reaction. [Applause.]
In conclusion, I want to say that as far as hostels are concerned, Mr Dhlamini, the President has accepted an invitation to visit Dube hostel. You have raised this issue with me over the past months. You can see that the first phase of renovation has already started - improvement and upgrading hostels into homes. I am coming from Dube. Secondly, we are going to visit the Eastern Cape. I told the President that he cannot be president of slums. You saw him on television, at Delakufa, Diepsloot and all those places. We will be going to Emerald Sky, so that we can see what public housing is about.
Mr Steyn, with all your DA criticism, I hope you join the ANC one day. [Laughter.] You are invited to join the President at that visit. I thank you. [Applause.]
The HOUSE CHAIRPERSON (Mr K O Bapela): Hon Minister, you were given extra minutes after your time expired through the grace of... [Interjections.]
The MINISTER OF HUMAN SETTLEMENTS: I am aware of that. That is why I stepped back. I did say I am contributing some of the ANC minutes to the DA. [Laughter.] I thank you.
The HOUSE CHAIRPERSON (Mr K O Bapela): They gave you three minutes.
Debate concluded.
The Committee rose at 16:37.
END
Audio
No related
Documents
No related documents