Honourable Speaker, this year marks the midpoint in the current term of government.
I am pleased to report that we are making progress with respect to the implementation of government priorities that we announced at the beginning of the term. Most of our plans and strategies are in place, and now our efforts and resources are focussed on accelerating implementation and action.
On the creation of decent work and growing the economy, a number of steps have been taken, including the expansion and diversification of manufacturing in the province; support to companies in distress; implementation of a provincial jobs programme whose key elements are the Jobs Stimulus Fund and the Provincial Jobs Strategy. These measures are intended to put job creation firmly at the centre of government agenda.
Of course all our job creation initiatives must be seen in the context of the overall performance of the economy, including our own.
Between 2009 and 2011, the Eastern Cape experienced an economic growth trend similar to that of the rest of the country. Whilst the economy demonstrated resilience in the midst of the global recession and grew upwards between 2010 and the first quarter of 2011, it nonetheless started to slow down, from a high of 4.8% in the first quarter of 2011 to 1.4% in the third quarter.
However, compared with the severity of the economic recession elsewhere in the world, the Gross Domestic Product (GDP) figures show that over this period the real decline in GDP in the Eastern Cape was less severe than estimated.
As stated in the State of the Nation Address by President JG Zuma last week, figures released by Statistics South Africa in the fourth quarter indicate that unemployment in the country has decreased from 25% to 23.9% as a result of new jobs created, and that during 2011, a total of 365 000 people were employed. For the Eastern Cape, the level of unemployment decreased from 29.9% to 27.1%, which, needless to say, is still high. However, we are pleased to report that out of a target of 94 504 job opportunities announced for Phase 2 of the Expanded Public Works Programme, a total of 110 472 work opportunities have to date been created in the Province. Similarly, 2 622 EPWP beneficiaries province-wide were also trained in technical and life skills through the programme. In the coming financial year our target is to create 116 958 work opportunities.
Despite the uncertain global economic outlook, we are happy to announce that our two IDZs are delivering the much needed investment for the province. The East London IDZ has secured private investors to the tune of R4.063 billion in the automotive, aquaculture, agro-processing, renewable energy and Business Process Outsourcing sectors. Of this amount, R3.3 billion is for two renewable energy projects – the Langa Renewable Energy Project in Berlin, and the Ikhwezi Photovoltaic Project. It is clear that our focus on the green economy is starting to pay dividends.
The Coega IDZ now has 21 operating investors, which represents R1.24 billion in private sector investments. To date the Coega IDZ has created 3645 construction jobs, and 2985 direct jobs. In addition, the Coega IDZ has a R7.6 billion pipeline of projects being implemented. Of note among these projects is the R1 billion FAW automotive investment, which will create 2000 direct jobs. The sod turning ceremony for this project will take place on the 28th February 2012.
Through the Cooperatives Fund, known as Imvaba Fund, we support cooperatives in the province. The disbursement of this fund is currently at the rate of R1.4m per coop, R300 000 of which is set-up funding and R1.1m is for project work. Thus far 46 established coops and 16 new entrants have been supported.
The University Of Fort Hare Cooperatives Institute is providing capacity building programmes to cooperatives in the province. However, we are mindful of the need for government departments to play their role in supporting the small enterprise development sector, including cooperatives. In this regard, a stern instruction has been issued for disciplinary action to be taken against senior government officials who fail to pay suppliers timeously. We will work closely with the National Youth Development Agency to ensure that young people can easily access growing economic development opportunities in the province.
Honourable Speaker, the job creation initiatives of government are also pursued in the context of building social and economic infrastructure. Last week, our President announced a range of infrastructure initiatives aimed at boosting the country’s economy. With respect to our province the President announced that in the “former Transkei part of the Eastern Cape, we are committed to building a dam using the Umzimvubu River as the source, in order to expand agricultural production.” We have already conducted feasibility studies for this project, and the President’s announcement is a concrete and clear indication that it will soon move to implementation. Other water infrastructure development projects include seawater desalination in Port Elizabeth and Port Alfred which is at feasibility stage; rehabilitation of former homeland irrigation schemes, which is currently underway;
We also welcome the President’s announcement that, with respect to logistics infrastructure, “we will develop a major new South Eastern node that will improve the industrial and agricultural development and export capacity of the Eastern Cape region, and expand the province’s economic and logistics linkages with the Northern Cape and KwaZulu-Natal.”
Indeed the Ngqura container port expansion, which is underway, will significantly complement this initiative, because it seeks to position the Port of Ngqura as a continental trans-shipment hub. Transnet has committed over R20 billion for basic port infrastructure, container terminals, cargo berths, manganese export terminal, and liquid bulk terminals. Also prioritized by Transnet is the Ngqura-Gauteng rail corridor which will go a long way in integrating the Eastern Cape in the national economy. We welcome the President’s firm leadership in championing economic catalytic projects including PetroSA’s Project Mthombo whose announcement is imminent. Transnet has committed to upgrading the East London Harbour, having committed R2.3 billion over the next five years.
This is clear indication that our efforts in lobbying national government and state-owned enterprises to invest in our infrastructure development programme are starting to bear fruit. Evidence of this is also demonstrated by the partnership between the Provincial Government and the national Department of Rural Development and Land Reform in the construction of an access bridge over the Mbashe River to Mvezo. Similarly, we have concluded discussions with ESKOM to invest more than R10 billion in the energy infrastructure in the province over the next six years. This includes increasing transfer of power to the Nelson Mandela Bay and Buffalo City Metropolitan Municipalities, and strengthening integration of the KwaZulu-Natal – East London line which will also improve energy supply to Mthatha and the rest of the province. Henceforth, we are pleased to announce that the Alfred Nzo region will be serviced by ESKOM in the Eastern Cape, and no longer KZN as it has been the case. As part of the KSD Presidential Revitalization Project, designs for the Mthatha logistics infrastructure have been finalized, components of which have already commenced. These include the airport upgrade, widening of the N2 bridge and upgrading of roads in and around Mthatha.
Honourable Speaker, with respect to road infrastructure, the N2 Wild Coast, which will cost approximately R9 billion, was approved by national government, and will commence as soon as all preparatory process have been finalized.
It is estimated that this project will create well in excess of 6 800 direct jobs and open up the Wild Coast and key towns such as Port St. Johns for investment and economic development. However, in as much as government champions nature conservation, we have an obligation to balance the protection of environmentally sensitive areas with economic development and job creation.
To realize our determination to alter the current tar-to-gravel ratio of our provincial roads, we have partnered with the national Department of Transport and SANRAL so as to ease the pressure on the provincial fiscus with regard to maintenance of provincial strategic roads. We also welcome further improvements of the national roads in the province, which includes the section of the N2 road between King William’s Town and Grahamstown, between Dutywa and Mthatha, as well as between Mount Ayliff and Kokstad. Further reporting on investment in our roads infrastructure will be carried in the MEC’s policy speech.
Honourable Speaker, the provision of quality houses and related services remains a critical element in building sustainable human settlements. In this regard, we are pleased to report that so far a total of 8 303 houses have been completed while a further 7 870 are currently at various advanced levels of construction.
Furthermore, 2 397 units have been rectified as part of the national rectification pilot for the current financial year. Going forward we will strengthen coordination within the housing sector; respond to housing needs of military veterans; and improve the coordination of sanitation provision in the province. We appreciate the fact that our social housing initiatives such as Emerald Skies and Reservoir Mews continue to attract national attention as demonstrated in the many delegations who visit the Province so as to learn about these projects.
Honourable Speaker, in the area of rural development, land, agrarian reform and food security, we have made a commitment to reverse the legacy of endemic rural poverty and to improve the quality of life of people in rural areas. To this end, we made a specific undertaking that, guided by our Rural Development Strategy, we would establish a Rural Development Agency, as well as provide support to a range of agricultural initiatives.
Indeed, notwithstanding the delays we experienced in establishing the Rural Development Agency, most of which were caused by requirements of the public participation process, the rationalisation of rural development agencies is at an advanced stage.
Utilising the existing Eastern Cape Rural Finance Corporation Act, ASGISA-EC will be integrated into the ECRFC to form the new Rural Development Agency by the 1st of April 2012. The Eastern Cape Appropriate Technologies Unit will be integrated into the Department of Rural Development and Agrarian Reform. Furthermore, we have extended the rural development site, which started at Mhlontlo Local Municipality in 2009, to eleven other municipalities across the Province. Already, more than 600 jobs have been created, while more than 2 400 households were trained in household vegetable gardening and fencing.
Honourable Speaker, the revitalization of irrigation schemes in the Province, in support of our agricultural objectives, is proceeding well. To this end, 978 hectares of land have been planted, 205 temporary and 75 permanent jobs created at Ncora, Keiskammahoek and Shiloh Irrigation Schemes respectively. These irrigation schemes are being implemented in partnership with the national Department of Rural Development and Land Reform and the District Municipalities concerned. As part of providing high value industry support, following an investment of R30 million in the pineapple industry in the 2011/12 financial year, 1500 jobs were created.
Investment in agricultural infrastructure is expected to create 1 264 job opportunities in 2012/13, benefiting 8 592 subsistence, smallholder and commercial farmers. On food security, 6 800 hectares of land was ploughed this year, and the gross retail value to food security is projected to be R 41 million. Working together with the national Department of Rural Development and Land Reform, we have recently launched the sugar-beet bio-fuel hub in Cradock. The projected investment is R2 billion and will create an estimated 13 000 jobs in farming, harvesting, processing and transport.
Honourable Speaker, it is also important that we recognise innovation and rural development best practice that is happening in the Eastern Cape. In this regard, I wish to recognise the Three Crowns School in Emalahleni that has won numerous international awards for sustainable food security and renewable energy. I also wish to recognise the University of Fort Hare Agri-Parks initiative in Alice and Butterworth. These projects are replicable and need to be put to scale in the province.
We welcome the report from the Land Claims Commission to the effect that, out of the 17 814 claims lodged, 17 175 have to date been successfully settled, thus transferring more than R1.8 billion to claimants.
We also wish congratulate the communities of Balasi, Tyutyu and Sikhobeni for the successful resolution of their claims. These claims cover a total of 750 households translating to an estimated number of 2 090 beneficiaries at a total cost of R66.9 million. The Minister will do the official handover for this settlement tomorrow.
Honourable Speaker, we proceed from an understanding that education is a tool for breaking the cycle of poverty and underdevelopment. To this end, the task of strengthening education and building a skills and human resources base remains one of our critical priorities. We are also acutely aware of the constant challenges that are faced by education in the province and I will not bore this House by detailing these challenges. However, I would like to assure Honourable Members and the citizens of this province of our unwavering commitment to rid the education system of these challenges.
As a result of this awareness, we instituted a Turnaround Plan for education as far back as 2010, which has now been augmented by the implementation of an intervention in terms of section 100(1)(b) of the Constitution. As part of this intervention, a joint committee of Ministers and MECs is currently overseeing the implementation of six identified priority areas.
We will continue to improve our monitoring of the turn-around plan while at the same time we will be consciously building a broad social partnership towards a common education agenda.
We took the first steps towards this common education agenda on the 8th of February 2012 when we signed an agreement with the COSATU-affiliated public sector unions. Among other things, this agreement says:
“The parties recognise that the unions have a critical role to play in solving these challenges. The trade union movement commits to help improve the quality of service to our people. Accordingly, the unions have made a commitment to cultivate a new spirit among trade unions and workers in general. A new ethos based on the principles of Batho Pele is desperately needed in the province to change ethos inherited from our painful past. In this regard the unions embrace the quality of learning and teaching campaign and basic education accord.”
The agreement also responds to our concern on the 0,2% decline recorded in the matric pass rate for 2011. However, wwe have noted with appreciation the improvement in the Eastern Cape’s Grade 3 performance, in Literacy and Numeracy, recorded in the Annual National Assessment 2011 as compared to 2007 systemic evaluation. We will intensify the programme to improve literacy and numeracy in primary education.
Honourable Speaker, notwithstanding the challenges we have referred to, a number of service delivery areas in education are showing a sign of improvement. We have stabilised key education support areas such as scholar transport and school nutrition. Stationery was also delivered timeously to all schools for the 2012 academic year. By the end of January 2012 all schools had been provided with textbooks and workbooks.
We improved the functioning of the scholar transport by transferring the function from the Department of Education to the Department of Transport with effect from the 18th of July 2011. For the current financial year 56 461 learners are being transported to 614 schools throughout the province. The school nutrition programme was decentralised to schools, and as a result parents are now playing a more active role in the provision of school nutrition in schools. This has seen more than 1.6 million learners in 5 132 schools of Quintiles 1, 2 and 3 benefitting from the programme in the current financial year.
With respect to post provisioning, 64 752 posts were timeously declared by the MEC at the end of September 2011. To address the immediate need in the classroom, a total of 305 educators were appointed and deployed to various critical school subject posts in Grades 10-12 between August and December 2011. The process of identifying and placing educators that are additional to their school post establishments has started.
On the implementation of the Learner Attainment Improvement Strategy, we will be paying particular attention to poor performing schools and districts from the 2012 school year onwards. To this end we will focus on strengthening the management and administrative capacity and systems at schools and in the districts, as well as building adequate levels of monitoring and support.
Honourable Speaker, we remain equally committed to improving the state of education infrastructure. Therefore, in partnership with national Department of Basic Education, we are targeting mud and unsafe schools through the Accelerated Schools Infrastructure Delivery Initiative programme. To this end, 49 schools have been handed over to contractors, and construction had begun by the end January 2012.
Honourable Speaker, the Province will implement support programmes targeting unemployed youth to gain skills in order to support our objective of growing the economy. This will include the Strategic Skills Project where unemployed youth are enrolled in learnership and apprenticeship programmes. We are pleased to report that Provincial Government has signed a Memorandum of Understanding worth R20m with the merSETA to implement learnerships and apprenticeships in various centres of the province.
The Province has also entered into partnerships with some SETAs, the private sector and local universities to develop the strategic skills required by the Eastern Cape economy. Furthermore, departments in the province are providing specific bursaries with regard to their mandate and provision of scarce skills in their line function areas.
In response to the challenges experienced at Walter Sisulu University, we are improving our support, and a team of five MECs is working with the leadership of that institution to resolve these challenges. We are also supporting the intended investment by the national Department of Health in improving the quality of and expanding the School of Medicine at the Walter Sisulu University.
Honourable Speaker, we are also focusing on improving the health profile of the people of the province. This House is now surely aware that, similarly to education, we have been implementing a Turnaround Plan in the Department of Health. This initiative is principally focused on curbing rampant fraud and corruption; improving the effectiveness of human resource systems and building management stability; reducing the budget deficit; and improving financial management in general.
The recent audit report by the Auditor-General indicates that our efforts in turning around the situation in Health are yielding the necessary results.
For example, in the 2010/2011 financial year, the Department of Health achieved a qualified audit opinion, after years of disclaimers and adverse opinions. Regarding Human Resources, the management of misconduct cases has improved. As a result, 197 out of 254 financial misconduct cases were finalized. Consequently, cases involving more than 700 employees regarding fraud and corruption, worth more than R800m, have been handled and finalised. It is through these savings that we are now able to respond to the critical areas of health provision. We have, for example, increased the number of ambulances from 56 to 356. We have also seen a 7% reduction in child mortality this year compared to last year.
With respect to the health infrastructure programme, we have completed the construction of Madwaleni Hospital Water Project.
Accommodation for Nurses and a Casualty/OPD at Victoria Hospital has been constructed. An accident and emergency centre at Livingstone Hospital has been developed. The construction of the Cecilia Makiwane Hospital Service building including a Nursing College with Residence has been completed.
We are gradually attracting back Health Professionals into health sector in the Province. As a result, to date there are 1141 Medical Officers, 144 Specialists, 2438 Nurses and well over 1800 Community Health Workers.
We have also awarded bursaries as a result of which there are 304 qualified graduates, of which 115 are medically trained and 110 nursing trained graduates. However, we note with dismay the reluctance by some of our student doctors, especially those who have been assisted to study by government, to go and be of service to rural communities. While we will continue to provide this support, we will nonetheless continue to appeal to all beneficiaries of government support to meet their obligations.
The incidence of HIV, AIDS and TB is stabilizing, and the TB detection rate has increased. Working together with KwaZulu-Natal, we have pioneered the model for monitored home-based care for MDR-TB, and as a result, more than 2000 patients have been stabilized. Likewise, the immunization program has improved considerably over the last few years.
Honourable Speaker, the fight against crime and corruption continues and is being intensified on all fronts. We are pleased to note that there has been a downward trend in crime in the Province over the past ten years. Recent statistics indicate a general stabilization across the various crime categories. These include murder, attempted murder, burglary, motor vehicle theft and illegal possession of firearms. However, we are concerned about the increase in the incidence of sexual crimes.
We are reminded of the case of the two Frankfort girls, sodomy in the areas of Port Elizabeth, and many others.
The mobilisation of stakeholders around crime prevention and combating campaigns has also been intensified, with Public Education and Crime Awareness campaigns being held throughout the province. Policing of the borders with Lesotho remains a high priority particularly with regards to stock theft and other cross border offences. To this end, education awareness in the border areas is being intensified. Similarly, the SANDF will take over border control from SAPS as from 01 April 2012. We are also paying particular attention to building capacity, especially in terms of personnel and resources. Working together with the DPSA and PALAMA, we have taken the responsibility to ensure that anti-corruption practitioners are trained on developing anti-corruption strategies. We have also approached SAPS, SIU and NPA to utilise existing resources to provide training on investigations and legal issues pertaining to fraud and corruption. Provincial Government has also developed a web-based fraud and corruption case management system, where data is captured, and reports are generated. This has helped us to ensure that case tracking and trends analysis functionality is optimised. We have also selected the Department of Health as a pilot site for the project to fight fraud and corruption, through the Multi Agency Working Group under the leadership of the National Treasury.
Honourable Speaker, as already indicated we have to accelerate the implementation of the work of government as we advance towards the end of the term by 2014. Therefore as we continue with the task of Building a Developmental State, we will place emphasis on implementation and action because without the culture of execution our plans will remain hollow. In the quest to improve the discipline of getting things done in the public service, the province is intensifying its efforts to transform the culture of entitlement to output and people-oriented culture. To improve efficiency and effectiveness of the state we pay attention to the improvement of outcomes and outputs-driven systems. We shall also focus on the optimal utilisation of available resources and value for money. In keeping with our stated objective of developing and maintaining a fully enabled, functional and vibrant planning, monitoring and evaluation capacity within our Provincial Government, the establishment of the Eastern Cape Planning Commission has been promulgated.
We continue to work towards improving Human Resources management in the province. In this regard, we have recruited and deployed HR Specialists in the Departments of Education and Health as part of our turnaround interventions. In addition, the provincial PMDS policy has been revised to ensure better management of performance in departments.
One of the key elements of public sector transformation is the achievement of employment equity. To this end, we are concerned that at Senior Management Services level, males constitute 69% whilst females constitute only 31%, and this picture has to change. However, we are pleased to report that all Heads of Departments’ posts are filled, and four of the incumbents are women. We congratulate the Department of Social Development and Special Programmes for achieving the 50% threshold for women in senior management positions. We note that there is still a historical challenge with respect to some departments such as Departments of Roads and Public Works and Transport who are still lagging far behind in achieving equity targets. We also note with concern that at levels 11 and 12, which are feeder levels to SMS, women constitute only 42% of the workforce. Noting this situation, the Executive Council revised the Provincial Employment Equity Strategy and Policy in order to implement bold measures aimed at accelerating the realization of the equity targets.
Honourable Speaker, we are making progress with respect to the provision of hands-on support to local government. We continue to provide support to a number of municipalities in processes of filling critical positions such as Municipal Managers and Chief Financial Officers.
Provincial departments have also been directed to designate the month of September as an IDP focus month and to ensure that all senior managers attend district and metro level IDP processes.
We have spent R32,9 million in programmes to support various interventions as part of the implementation of the Local Government Turnaround Strategy. In particular, since the previous term of local government, we initiated a number of interventions under Sections 139 and 154 of the Constitution in the local municipalities of Koukamma, Sundays River, Amahlati, Nxuba, Ngcobo, Buffalo City, Gariep, Great Kei, Inxuba Yethemba, Kouga, Mbashe, Ikhwezi, Mbizana, as well as Alfred Nzo District Municipality. As a result, a number of these municipalities have now stabilised and are functioning with minimal provincial support.
As part of our quest to achieve clean audits for municipalities, financial management support is being given to municipalities through a partnership involving the Department of Local Government and Traditional Affairs, Provincial Treasury, SALGA, the Local Government SETA and PALAMA. This partnership is focusing on providing training in respect of all capacity gaps identified as critical, including Supply Chain Management.
These interventions are yielding the desired results, as indicated by the gradual movement from adverse and disclaimer audit opinions to qualified and unqualified audit opinions.
On the audit outcomes of provincial departments, for the 2010/2011 financial year, one department received a clean audit; seven departments received unqualified audit opinions with other matters; five departments received qualified reports; and one department received a disclaimer of opinion.
With respect to the overall fiscal environment in the Province, which the MEC for Planning and Finance will speak more about in the budget speech, we are concerned about continuing over-expenditure on the compensation of employees, especially in the departments of Health and Education. Of course, steps to alleviate the potential impact of the over-expenditure have been identified and are being implemented through a number of austerity measures. However, the inability of some of our departments to spend the infrastructure budget remains an area of grave concern. As a response, we have already started with the establishment of centralised infrastructure delivery capacity in the Department of Roads and Public Works. As part of our efforts to build the capacity of the state, we have successfully taken over the full management of the Provincial Government fleet, with effect from 1 February 2012.
Following our Executive Council Lekgotla in August last year, we announced that we will be taking measures to prohibit public servants from doing business with government. A framework guiding the implementation of this objective is being finalised.
Honourable Speaker, I am aware that the term of the current members of the Provincial House of Traditional Leaders will end as we begin the next financial year. I wish to take this opportunity to thank these members in particular, and the institution of traditional leadership in general, for their role in the establishment of democratized Traditional Councils, as well as the campaign to reduce the incidence of initiation deaths.
On the building of cohesive and sustainable communities, indeed the celebration of the ANC’s Centenary provides us with an opportunity to focus on rebuilding our communities from the broken legacy of colonialism and apartheid. We must surely be informed by the need to lay the basis for a responsible citizenship that is intolerant of substance abuse and corruption and the desire to build conscientious citizenry.
To this end, we are reminded of and inspired by the words of the first President of the African National Congress, Reverend John Langalibalele Dube in his acceptance speech, when he said: “We have been distinguished by the world as a race of born gentlemen – a truly glorious title,...and by the gentleness
It is this society that we seek to build – a society that does not take kindly to being witness to the condemnation of one other person into poverty and a society which is offended by the incidence of child-headed families.
As part of promoting social cohesion, a number of heritage projects in the Eastern Cape will be conserved. These include the Steve Biko heritage centre in Ginsberg in King Williamstown, the homes and graves of former ANC Presidents and other national heroes including Robert Sobukwe, as well as the development of memorial sites for the Pondo Revolt and the sites of the Frontier Wars. These projects will add a significant impetus to our own initiatives in this regard, which include the Provincial Liberation Route; the Bhisho Massacre Memorial which is currently at final stages of construction; the process of name changes in the Province; the OR Tambo Music Festival, scheduled for October 2012, which will also be linked to the launch of a memorial lecture; as well as the acceleration of the Nkantolo Village Development Project. We are also happy to announce that the Province will be launching a major campaign known as the “home of the legends” to celebrate the role played by our living legend, Nelson Mandela, and other icons.
As part of promoting cultural tourism in the province, we will profile the SDI Wild Coast festival and other arts and culture projects. We are pleased to announce that over the next five years, the SATMA Awards will be hosted in the Eastern Cape. We will also intensify our efforts to promote sport, arts and culture in schools and this work is currently being supported through the conditional grant. The sign language association (Masithethe) and draft sign language constitution have been developed. Having launched a language policy, we will now finalise the process of the promulgation of the Language Bill.
Honourable Members, please join me in saluting and congratulating the men and women of our Province who have made us proud by excelling in sport, art and related activities. Bulelwa Mkutukana, also known as Zahara, who is South African and African best emerging female musician; Noni Tenge who was crowned the IBF World Welterweight Champion and South Africa’s number one female boxer last year; Girls Border Rugby Sevens, who won the National Championships; and the Under 21 Border Rugby team, who won the National League and got promoted to the Premier League. In the SA Games held in Limpopo last year, the province collected 74 medals, with 23 Gold, 21 Silver, and 30 Bronze.
In conclusion Honourable Speaker, as we advance towards the end of the current term of government in 2014, we will continue to reposition the province within the national development landscape, which includes a renewed effort to improve the provincial image, building and rallying around a common vision, and promoting social dialogue in all areas of social need. This will require that we work together so that we may indeed achieve more.
I thank you
