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   Government’s Report to the Nation

The Building has Begun!

In voting for a better life for all, the people of South Africa set the Government a mandate with three broad and interrelated goals, namely

1. the establishment of a legitimate government that is democratic and an effective instrument for change

2. nation-building and reconciliation

3. reconstruction and development.

Through reconciliation and nation-building, together with firm action we as the Government have reduced political violence to a minimum. Today, we are proud not only to have turned our back on a terrible past, but the new nation has started to take root in all spheres of life, including sports, the economy and the fight against crime. We are a free people, masters of our own destiny.

The economy has been turned around decisively: today, about 20 mega-projects each costing more than half-a-billion rand are operating or under construction in Richards Bay (Alusaf), Saldanha Bay (Iscor), Port Elizabeth and elsewhere; and many are to start in Mpumalanga along the Maputo Development Corridor, in the Eastern Cape, northern KwaZulu-Natal and the Northern Province.

There is a massive increase in exports and markets have opened for our entrepreneurs worldwide, with more opportunities than we are able to exploit. From negative growth, the economy is in its sixth year of growth; direct foreign investment has increased tremendously compared with the period before 1994. A partnership has been forged between business, Government and trade unions reflecting the shift from the intense conflict of the past.

We have turned the corner in so far as programmes to uplift people's conditions are concerned. Since 1994, we have started many impressive projects such as school feeding, free health care for pregnant mothers and children, water provision, housing subsidies, infrastructure and services. During the first two years, the main emphasis was on planning and setting up the machinery for delivery.

Today, particularly with democratic local government, communities throughout the country are beehives of activity. Away from national media coverage, streets are being tarred, refuse collection being improved, schools being renovated, clinics being built and upgraded, and housing projects being started.

No-one can challenge the fact that on all the major questions that South Africa has to address, this Government has the best possible policies, strategies and laws for the country’s needs. But now the challenge is not just good policies - we have them. The foundation has been laid, and we are well into a phase of implementation and clearing problems that we find on the way.

A year ago the Government published its Mid-term Report to the Nation. This booklet updates that report and sets out the progress made and the difficulties experienced in fulfilling the Government's mandate to the citizens. It also briefly outlines the concrete projects the Government will implement in 1998 and beyond.

February 1998

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Madame Speaker and Deputy Speaker of the National Assembly;

Honourable Chairperson and Deputy Chairpersons of the National Council of Provinces;

Honourable Members of Parliament;

Distinguished guests;

Ladies and Gentlemen:

I should start by expressing my appreciation for this opportunity to exchange views with you at the beginning of this penultimate sitting of our first democratic Parliament.

I wish all of you a productive New Year in the service of the people.

As Government, we are confident of the progress being made to meet our mandate. We are resolved to build on the solid foundation that has been laid over the past three-and-a-half years. As always, the most critical challenge is whether we are succeeding as leaders in mobilising the people in actual practice to be their own liberators.

We know too well that on our own we cannot succeed. We know that the programmes of Government are not the panacea for all the ills of our terrible past. They are but a platform for South Africans to let their strengths shine through.

By our own pronouncements and actions, we could relate to these citizens as passive recipients of ‘government delivery’, as if Government were a force on high. Worse still, we could turn some constituents into passive critics, their own rationality drowned in the chorus of regret that the past has passed. On both counts, this would be a recipe for sure failure.

That is why, during the course of last year, we once again put the Masakhane Campaign at the centre of our activities. And our performance should be judged above all on the basis of whether our programmes are positively affecting the lives of especially the most vulnerable sections of society: the poor, women, the disabled, children and the rural masses - the primary victims of the iniquitous system from which we have just emerged. We are proud to answer this question in the affirmative.

Last year, we increased the supply of clean and accessible water from 700 000 to 1,3 million South Africans.

We have surpassed our plans to build or upgrade 500 clinics last year, and the primary school feeding scheme reaches 4,9 million children.

From 250 000 in 1996, we are in line to make 421 000 telephone connections this financial year, making life that much easier for millions of South Africans.

With more than 400 000 electricity connections made in 1997 alone, today, South Africa has reached a 58 per cent electrification level so millions can have light.

Besides the impressive land redistribution programmes, the law on secure tenure will bring more certainty in the lives of over six million citizens.

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There is no magic in numbers as such. But we are proud that, through these and many other projects, our programmes are impacting on the lives of particularly the poor. This applies to varying degrees with regard to other challenges to which we shall return later.

And it is all a result of a clear strategy, properly managed plans, good governance and, more than anything else, the determination of the overwhelming majority of our countrymen and women to change their lives for the better. It is therefore understandable that, unlike some of us, those who had borne the brunt of apartheid oppression say that things are a lot better.

But they also say, and are justified in saying so, that what has been done is not enough. Not because they expect the legacy of centuries of colonialism to be eradicated in a few years, as we ourselves have said on countless occasions before. Not because they are frustrated with Government. But because they appreciate that together we need to do much more, over many years, to realise a truly just and prosperous society. They do recognise that in this Government, they have a serious, committed and caring institution - a Government that they can call their own.

We are at the beginning of an arduous and protracted struggle for a better quality of life. In the course of this struggle, we shall have immediate successes, we shall have setbacks, but we shall certainly progress, inch by inch, towards our goal.

From time to time, incidents do happen which bring out in bold relief the enormity of the challenges we face. As the saying goes, ‘one falling tree makes more noise than millions that are growing’. As such, for both good reason and bad, occasional problems are seized upon by our detractors as the stock-in-trade of this Government; indeed as the essence of democracy.

I will raise a few of them, particularly, difficulties with regard to old-age pensions, education, crime and corruption, housing, and job-creation, because they touch on the very essence of the issues of resources needed to meet our obligations, the size of the Public Service and its management, civic duty and a new morality.

A few weeks ago, the problem of disbursement of old-age pensions and other social grants came to the fore.

Let me start off by saying that, in the way that we increased old-age pensions last year, and as we eliminate fraud, we shall seek to find resources this year for a further increase - modest as it may be - working towards a life of dignity for our senior citizens. Let me further emphasise that we are committed - not merely because of statutory obligations, but because we care - to ensuring that, whatever the occasional administrative hiccups, the right to a pension will always be met.

What has not received much public coverage is the fact that the problems we experienced recently derived from the following:

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Firstly, that the audit of our newly integrated system is not only eliminating ‘ghosts’; but it also identified people who were callously refused these pensions under the apartheid system and its bantustan off-shoots. Today, they are on the roll; and it was decided that their right to back-pay could not be disregarded.

Secondly, the measures that have been taken to eliminate corruption have uncovered many fraudsters in the government machinery, but we still have a long way to go to resolving this problem.

Thirdly, some public servants are, to put it mildly, not imbued with the spirit of public service - to the extent that even in instances where these funds are available, they do not turn up on time and/or they relate to senior citizens with attitudes bordering on the criminal.

Through co-operation between national and provincial governments concerned, we shall ensure that these problems are dealt with methodically and with a ruthless determination.

Related to this, we did indicate last year that we expected some teething problems in the first year of total budget allocations to the provinces. Indeed, we need to pause here, to pay tribute to the provincial administrations, which were able to come through without debilitating dislocation. Given the serious problems identified by central government task teams last year, it is thanks to the efforts of all provinces without exception that the problems have not been much worse. But we must eliminate overspending.

A related and critical matter is the issue of how the public resources at our disposal correspond with the social backlog that we have inherited.

In our view, the starting point in addressing the question of the national budget and public finances in general is that we cannot behave like fools who cut their nose to spite their face: to throw policy out of the window in search of fractions of percentages in deficit targets. We have creatively to strive to meet our obligations within the context of a reduction of the public debt.

Indeed, we cannot pretend that the deficit targets we have set ourselves do not test our capacity and will. But we cannot divert from the course we have chosen. There is no other route to sustainable development.

Two critical matters arise from this.

In the first two years of our democracy, we sought to use the special mechanism of a so-called Reconstruction and Development Programme (RDP) Fund to lever changes in the patterns of departmental spending. Today, this task is built into the normal functions of all departments. Reprioritisation and more reprioritisation is the challenge that we shall continue to grapple with in the coming years.

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For, if we should not and cannot cut down on houses and clinics being built; on the supply of water; on improving the quality of education, including the building and equipping of schools; on improving policing, and so on, then we have to cut down elsewhere.

There have been some commendable savings from better cash flow management. But this is limited.

There has been some reduction of staff in certain departments and provinces. But it is not nearly enough.

And we cannot use the proceeds of privatisation to fund salaries and other consumption expenditure.

Put in simple terms, we need to cut spending on personnel.

I am confident that all of us, and the trade union movement in particular, will agree that apartheid South Africa was over-governed and over-supervised. The size of the Public Service had nothing to do with public service.

On the other hand, democratic governance is management of a process whereby people govern themselves. Government is not an employment agency.

This year, we shall go into this question without equivocation. Frankly put, we shall need to start comprehensive discussions with the unions on retrenchment in accordance with the provisions of our labour laws. These negotiations will need to take into account the principle that shedding jobs in the Public Service does not necessarily have to translate into worsening the problem of unemployment.

For instance, retrenchment packages that include investment capital and tender obligations on the part of Government can, in fact, help expand the job market especially in depressed rural areas. We shall, as a matter of urgency, require our Public Service Department and provinces to work out proposals in this regard.

Jobs, jobs and jobs is the clarion call that should guide us. We do pride ourselves on the health of our economic fundamentals: the declining rate of inflation; the incentives that we introduced which have attracted over R7 billion in investments; close on 400 projects related to Spatial Development Initiatives (SDIs) such as the Maputo Corridor which have attracted investments to the tune of about R77 billion; the rising graph of productivity, and increased exports.

With regard to the budget, we have introduced transparency and certainty through the Medium-term Expenditure Framework (MTEF). And tax collection is improving as more people are brought into the net. We can quote many more examples, including a relatively stable exchange rate in the face of global adversity; and the hundreds of thousands of jobs created through public works, municipal infrastructure and investment promotion programmes. But the economy continues to shed too many jobs.

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This is in part because the rate of investment, particularly by ourselves as South Africans, is not enough. Within an overall increase in fixed investments of about 3 per cent, public authorities show a massive decline in the rate of growth of capital expenditure. Public corporations are doing much better and they need to be commended for this. The rate of growth of productive private investments has not been impressive.

As such, we should all agree that the issue is not merely one of Government creating a favourable environment to attract investments. This it has done with commendable determination. What is required is a deliberate effort to increase investments: the type of investments which create jobs.

These are the things, I am told, that the various sectors in the National Economic Development and Labour Council (Nedlac) are addressing in preparation for the Jobs Summit. By the time of this Summit, we hope that a real partnership will have emerged among Government, business and labour to tackle this critical task.

One will not be exaggerating by saying that, given its impact on everything else we do as a nation, including crime prevention, reconciliation and the very survival of our democracy, the Jobs Summit is perhaps the most important event since our first democratic elections; an important launching pad for a determined national drive as we move into the twenty-first century.

It is quite clear that as we finalise preparations for this Summit, we cannot continue to imprison ourselves in the paradigm of large profits and only large profits as the driving force of business operations. We cannot continue to wallow in the illusion that the protection of the narrow interests of the employed is the driving force to poverty alleviation.

We must launch joint efforts towards an economy that creates jobs; towards a society that cares by helping the unfortunate in its ranks to help themselves.

Within the context of facilitating economic growth, transfer of technology and black empowerment, we have made great progress in the programme to restructure state assets. As we promised at the last opening of Parliament, the previous year has seen Telkom acquire strategic partners; Sun Air has been privatised, and South African Airways (SAA) is completing its restructuring towards acquiring a strategic partner. While the Airports Company and the South African Forestry Company Limited (Safcol) processes are taking longer than anticipated, they are on their way to completion this year.

The pace in the restructuring programme is broadly in keeping with our set time frames. Where difficulties have been experienced, they represent lessons both about our past and our present.

With the Aventura Holiday Resorts, for instance, a government of the people could not ignore the complex land claims that are attached to some of these resorts. With Alexkor in diamond mining, we once again learnt that much information about the net worth of many state assets has been concealed by those who ran the previous government, or they simply did not care about these assets. But we are on course to resolve the problems.

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I wish, once more, to reiterate that, for us, the issue of restructuring state assets is not driven by ideology. We shall privatise where necessary. But we shall also set up new state enterprises where market imperfections and failures play themselves out to undermine social programmes. Such is the case with elements of the liquid fuels industry and the servicing of housing construction, which has not received optimum support from the banking industry. Restructuring also means strengthening management of existing enterprises; a programme that we have intensified.

On the issue of housing in particular, it is necessary to go back to the basics.

The numbers of close on 400 000 subsidised houses either completed or under construction and about 700 000 subsidies allocated are important indicators of progress. But as we indicated earlier, there is no magic in numbers as such: and the target of one million houses in five years, provided directly by Government, may not be attained. What we need to examine closely is whether, after the delays in the launch of the housing programme in 1994, we have mustered the capacity to accelerate this programme. And the answer is, yes!

The pace of housing construction is accelerating. Today, 1 000 houses are started or completed every two-and-a-half days and, as a result of our programmes, 1,2 million South Africans have a permanent roof over their head.

In consultation with some of the banks, we have cleared hundreds of so-called red-lined areas; we have ensured over 60 000 loans at the upper end of the subsidy market; many constructors have been registered; and the monitoring of quality and the capacity of provinces have been enhanced.

In addition to issues of quality, questions have also been posed about the sizes of houses that are being built. Going back to the basics here means appreciating that Government is focusing on the poor and most vulnerable sectors of society.

If we have to reach the widest spectrum of these citizens, with the resources available, we cannot increase the size of the subsidy. In addition to services and a plot of land that families can call their own, possibilities are left for them to exercise initiative with the resources available, and to improve the basic structure when they are in a position to do so.

Indeed, among the proudest moments of this programme is the involvement of the people themselves, especially women who, through their own labour and creativity, are able to achieve much more with less. In consultation with local government, we have also started to examine in greater detail the question of density, integrated development and rental accommodation.

In brief, whatever the difficulties and initial delays in the first year, we are on course to ensure that, in the end, there shall be housing and security for all.

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Transforming education

Honourable members and delegates will agree that significant progress has been made in transforming education, including adult basic education, from the mess it was under apartheid. Today, children starting their schooling can, for the first time, do so just as children - not a black piccanini or a white kleinbaas. From the self-criticism last year about the school-building projects, we are now happy that provinces have started to use more of the funds set aside for this purpose.

But, as in other areas, there have been moments in this sphere which bring to the public mind the enormity of the tasks that we face. Such were the matric results of last year. It is encouraging that, in typical South African style, after the brief flurry of accusations and counter-accusations, we started to focus attention on the real issues. Among these issues is the fact that the standard of the papers was somewhat higher and security of exams somewhat tighter; most inconsequential subjects taken in the past simply to fill a certificate were done away with; the marking was more rigorous, and there was minimal adjustment of the marks. As such, though ironic to say, there were fewer but better passes.

This is not to detract from the fact that we have only scratched at the surface of the legacy of apartheid education. Many children still study under trees and in dilapidated buildings. Many schools are hollow shells without even the most basic equipment for normal teaching. Many teachers do not have the capacity to transmit knowledge in a professional manner. And some simply do not see it as their civic duty to relocate to areas in need.

There are inexcusable and unacceptable delays in the supply of textbooks which derive from poor management and shoddy tendering deals; let alone the non-existence or malfunctioning of many school governing bodies.

Yet when all is said and done, many schools in disadvantaged areas have shown that serious application to duty by the school authorities and the students can bring positive results. We pay tribute to these heroes.

This spirit of community, of partnership and of hard work is required when dealing with problems of crime and corruption.

Again, in this area, the tendency often is to exaggerate and distort the real situation; to use half-truths and sensationalism to paint a picture of a situation out of control. It is understandable that unscrupulous politicians, media commentators and those who wish to question the legitimacy of the democratic process as such will conjure up crises in their heads, where, in reality, there are no crises.

The task of those interested in improving the country’s quality of life is to examine the real situation in its complex forms, even if this may not please the prophets of doom.

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That reality is that, since 1994, there has been a marked decline in virtually all serious crimes such as murder, robbery, taxi violence, car-hijacking and others. In other words, since this democratic Government came into being, there has been a decline in most serious crimes. This is a result of better coordination among all arms of the security services: the police, the intelligence services and the defence force, as well as co-operation across southern Africa. One such example of effective coordination is in the farming areas, where there is an 80 per cent success rate in apprehending the murderers.

The National Crime Prevention Strategy (NCPS) has got off the ground. And as we promised last year, the law on bail and mandatory sentences for serious crimes has been passed. A Detective Academy - interestingly the very first one in the history of South Africa - has been opened to improve the police’s investigative capacity and skills to do their jobs. Proposals on reducing commercial entry points including closing some so-called international airports have been finalised: and we hope that we shall receive the co-operation of all affected parties, despite the formal agreements that they may have entered into with the previous government.

Among the elements who know how effective the security forces are becoming are the crime syndicates themselves. It will happen that from time to time, and not seldom during crucial political moments, they will engage in dramatic acts such as robbery of cash-in-transit, syndicate turf wars and prison escapes.

But they know, better than any politician, that the net is closing in on them; that the intelligence services are on their heels even if it may take time to build watertight cases against them; that wherever they may be hiding - even in the police and other state structures, in the private security companies, among prison warders and even the legal fraternity - and that even if they may form a web of political forces bent on destabilising our young democracy, they know that their days are numbered.

The same should be said about corrupt elements who see public service as an opportunity for self-enrichment. Mechanisms are in place and are being improved all the time to root them out. In this regard, I wish to thank the media for its vigilance. While there may be instances where fingers were pointed at individuals without justification, there a good many examples where investigative journalism has helped us uncover the scoundrels - old and new - who prey on the public purse.

To find a lasting solution to all these challenges requires a community spirit among all of us, a New Patriotism which is finding root within the populace. We must build our nation into a community of citizens who appreciate their civic duty as each one of us improves our well-being. We must be ready to give back to society part of what we gain from it.

In this respect, the words of one eminent citizen who has actively joined the campaign against crime are worth repeating in this august Assembly:

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This is a challenge to all of us, especially those whose past privileges have afforded them skills that are in high demand in public service, to volunteer skills to help improve the lot of the nation.

Indeed, on the vexed question of crime, we could do more if all South Africans of integrity consciously ask themselves everyday whether they may have assisted in the commission of crime:

• as a parent who conceals the activities of a child who is taking drugs, without assisting the police in tracking down the suppliers;
• as a customer who co-operates in a transaction which allows one a large discount because the seller will not pay value-added tax (VAT);
• as a trade unionist or ordinary worker who turns a blind eye to pilfering on the shop-floor or, worse still, to corruption in government service;
• as a politician who stands behind individuals who break the law, in the name of challenging bodies such as the Truth and Reconciliation Commission (TRC);
• as a parent or spouse who avoids asking questions when a relative is suddenly awash with money, and behaves like a fugitive from justice.

Don’t many of us do this and more; and yet express bewilderment at the high rate of crime.

What this emphasises is that we need a campaign of moral regeneration. As we reconstruct the material conditions of our existence, we must also change our way of thinking, to respect the value and result of honest work, and to treat each law of the country as our own.

This is our call to all South Africans to firm up the moral fibre of our nation. It is a call to artists and musicians and sportspeople, to religious leaders and traditional institutions, to intellectuals, to the media and to all those who should give leadership as we establish new symbols and role models: all of us to join hands in a New Patriotism; not because the Government says so, but because it is in our common interest to do so.

In this regard, it is encouraging that the youth of our country, through the National Youth Commission, have taken important steps to define a youth policy that will give all - irrespective of the skin colour that is the accident of birth - a stake in our new society. Particularly heartening is the proposal for youth community service, which can be broadened to encompass most of society: be it in helping to clean streets, volunteering services in schools and so on.

Civic duty is the central purpose behind the Masakhane Campaign, whose awareness week last year was fairly successful. We shall continue this year and beyond to intensify this drive, including the mobilisation of, and assistance to, non-governmental and community-based organisations who truly have the interests of the community at heart.

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It is to promote the spirit of Masakhane that we set up the President’s Award for Community Initiative. This annual award honours those who roll up their sleeves and take the initiative to uplift their conditions.

We are privileged today to have with us, as guests of the President, representatives of the nine communities that were the first provincial winners. Selected from some 2 000 entries, they embody the unquenchable determination of South Africans to better their own lives.

We recognise the Buhlebemvelo Garden Project from KwaZulu-Natal; the Ikgodiseng Sewing Project from Huhudi; the Malungeni Training and Development Centre; the Bekkersdal Flagship Project for unemployed mothers; the Dassie Pre-school Centre from Oudtshoorn; the Khotsong branch of the Homeless People’s Federation; the Nkomazi Farmers’ Association; the Hantam Community Education Trust and, finally, the project which was announced yesterday as the national winner of the President’s Award for Community Initiative, the Mhala Development Centre in the Northern Province, set up by retrenched mineworkers working with their union and their former employer.

Our congratulations to those whom you represent, and indeed to all the 54 runners-up. May the financial prizes from Government strengthen your efforts and may your example inspire others to seek this honour in future years.

There are also countless others outside the limelight who deserve our admiration and gratitude, such as school principal Mr Mandla Hlatshwayo of Ndwedwe in KwaZulu-Natal, who braved a raging river during torrential rains to deliver matric examination papers to his students; the security guard who risked life and limb single-handedly to hold highway robbers at bay, leading to their arrest; the many sportspeople and other citizens who make us proud to be South African.

This multifaceted effort to build our society on the basis of a new morality demands that we should be open about mistakes that we committed in the past. Such is the importance of the TRC. Because these mistakes were committed by us, so will their airing in public be hurtful and at times embarrassing. But the more we know about how low we once sank, the more difficult it will be to repeat these mistakes.

At the hearings of the TRC over the past year, many horrid details emerged. We cannot fail to have been moved by the remorse of some perpetrators and the preparedness of victims to forgive. We cannot fail to have been astounded by their very modest appeals for their dignity to be restored. But this should not be surprising, for their suffering was not for pecuniary gain, but for the great prize of freedom and a better life for all.

The Government has heard the appeals for urgent reparations. And we shall be ready to provide modest assistance when the details have been forwarded. As part of the multi-year budget, account will be taken of the needs, within our limited resources; and we hope that those who benefited from the suppression of others will find it within themselves to make a contribution. As the TRC moves towards finalising its work, we shall do our best to ensure that their (the victims’) needs are provided for. But we know too that this will not be the end, but the beginning of the process of reconciliation.

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It is quite unfortunate that some among us still refuse to co-operate with the TRC. Given that part of its task is to unmask the networks that not only violated human rights, but also formed one web with crime syndicates, the question will haunt such forces forever, why it is that they continue to conceal this information! We need to make it clear that those who cringe at the banks of the Rubicon of truth, those who served in state structures and refused to apply for amnesty, will not be assisted by the State in the face of whatever consequences accrue to them from their past.

Related to this is the danger of any political leadership and media continuing with the campaign of exploiting the fear, uncertainty and anxiety of certain communities about the transition. The clamour among some parties to outdo one another in this regard is counter-productive, to say the least. It worsens polarisation and stokes the fires that have the potential of consuming all of us.

In any case, it is pointless because it will not stop change. Transformation is this Government’s reason for existence; and we shall not for a moment shirk our responsibility to the poor. This Government is humane, and we know that the well-being of those previously denied their rights is the sure guarantee for the well-being of all.

It is for this reason that it pains me personally when I listen to some of the debates in this chamber. Always, a clear distinction emerges between those who were at the cutting edge of the struggle for freedom who strive for change; and those who implemented or benefited from oppression who seek to block transformation, in defence of a modified form of the old order.

I should take this opportunity to pay homage to the institutions charged with the task of enhancing our democracy and culture of human rights. If we say with confidence that South Africa will succeed, it is in part because we know there is the Constitutional Court, the Public Protector, the Human Rights Commission, the Electoral Commission which has started its challenging work and the Auditor-General, all of whom will assist in ensuring that what we do is not only constitutional, legal and legitimate, but that it is seen to be so by all and sundry, including the weakest among us.

A word of congratulations to the Gender Commission which has started its work to ensure that our society is true to the principles of consistent equality in everything we do. Yet this Commission and the Office on the Status of Women should not be seen as watchdogs of an alien force bent on doing wrong. Rather, society as a whole should see them as part of our joint efforts as men and women, to liberate themselves from gender prejudice.

We are also encouraged by the systematic work being done regarding the position of the disabled. What matters is not merely the thousands of wheelchairs, hearing aids and tens of thousands of cataract operations provided in the past year alone, but also ensuring that the attitude in employment practices, in discourse, in design of infrastructure and more - all of these issues should be changed with the participation of the disabled themselves.

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This year we shall ensure the intensification of the efforts regarding multi-lingualism in government work, and we should thank the Pan-South African Language Board for its vigilance. Further, after extensive consultations during the course of last year, we are a step closer towards setting up the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities.

Our programme for this year will once more seek to speed up the improvement of the lives of all, with particular emphasis on the most vulnerable and needy.

Some of the additional highlights of this programme, whose detail will be announced by the various Ministries during the course of next week, include:

• Our commitment to meeting our budget deficit targets, as we further improve the efficiency of tax collection. As the further steps we took recently indicated, we shall continue, on a case-by-case basis, to lift exchange controls as conditions for such mature. Construction starts on many Maputo Development Corridor projects; two new development initiatives on the Cape West Coast and in northern KwaZulu-Natal will be launched in the first half of the year. Work starts in the west to complete the highway across South Africa from Maputo to Walvis Bay. The basic economy is being revolutionised.
  
• The integrated tourism programme will be launched in earnest, with the potential to create 300 000 jobs by the turn of the century.
  
• In the workplace, the departure from apartheid practices will be felt even more keenly as we finalise and implement the Bill on employment equity. And let us hasten to add in this regard that we shall not be discouraged by the sirens of self-interest that are being sounded in defence of privilege, and the insults that equate women, Africans, Indians, coloureds and the disabled with a lowering of standards. As we have said before, affirmative action is corrective action. There is no other way of moving away from racial discrimination to true equality. We therefore reject campaigns which are based on fear, rumour and gossip.
  
• This year, special attention will be paid to the further consolidation of local government, with its critical contribution in areas of infrastructure, job-creation, small business development and the very legitimacy of democracy. We should also take this opportunity to acknowledge local government delegates present here, and with them celebrate the beginning of their full participation in the National Council of Provinces and intergovernmental forums.
  
• The White Paper and new legislation on local government which should be finalised this year will help streamline this sphere of government without derogating from representivity and accountability. And to start meeting the requirements of the Constitution in the context of poverty alleviation, this year, over R3 billion will be equitably and directly allocated to this sphere of government.
  
• As we attend to these matters, particular attention will be paid to continued dialogue with traditional leaders, so as to ensure that all of them become full and active partners in the struggle for local development.
  
• This year also sees the launch of the new Government Communication and Information System (GCIS) which, we are certain, will contribute to the challenge to improve communication among South Africans; to afford citizens their right to information and to air their views.
  
• Our continuing work to reduce incidents of crime will also pay particular attention to women and child abuse; crimes which regrettably seem to be on the increase. Special programmes for the six metropolitan areas which account for the bulk of violent crime are being finalised for immediate implementation. Let us, once more, underline to those who choose to live a life of violent crime that, as recent incidents regarding cash heists have shown, we shall, with the combined might of the security services, return fire with overwhelming fire.
  
• This year we launch the programme that will streamline the judicial system so as to alleviate overcrowding in prisons, without creating any new dangers to society. Above all, we shall appoint the National Director of Public Prosecutions and provincial counterparts - a first in the history of our country.
  
• Within the intelligence services, it has become even more urgent to unearth the few rotten apples who arrogantly pursue an agenda counter to transformation. To put it mildly, they are an affront to our security and our pride as a nation; they are a blight on the commendable work that these services are doing to defend democracy.
  
• We are proud that, after a year or so of healthy and informative debate, we can now start the protracted process of re-equipping our National Defence Force. We wish to congratulate the armed forces and economic Ministries which have ensured that much of this will be done without a strain on the budget, and in a way that will benefit the economy.
  
• Our social programme will be aimed at accelerating implementation and consolidation of what has been achieved, within the limits of our resources. This includes:

• Ensuring that 90 per cent of mothers and young children have access to free medical care; starting the child support grant system which will reach three million children by the fifth year; achieving an 85 per cent cure rate for tuberculosis (TB); implementing the new laws to make drugs and doctors accessible, and, in addition to the building of clinics, dedicating R100 million to the upgrading of hospitals.
• In this, the Year of Science and Technology, our programmes to improve the learning environment, including the setting up of the Council on Higher Education, will be enhanced by a campaign to usher in a new and dynamic culture of scientific and technical innovation rooted in our schools, communities and enterprises.
• In the next financial year, a further 580 000 telephones will be installed. And we aim to supply a further one million citizens with clean and accessible water. At the same time, it is our responsibility, as the Water Bill is finalised, to change our own culture of water consumption, recognising that this is a scarce resource that must not be squandered.

As Cabinet finalises these and other plans in the context of multi-year budgeting, we shall, as always, be guided by our concern for the poor and most vulnerable sectors of society: to provide basic services; to improve the economy and job-creation; to deepen democracy and good governance, and to improve the safety and security of all.

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I should also announce that, as a proactive measure to improve good governance further and in accordance with the Constitution, this year the President’s Office will start drafting legislation on ethics in Government, including a statutory Code of Conduct applying to members of the executive at national and provincial levels.

In these our efforts, we draw inspiration from countries that have, to varying degrees, to address problems similar to ours.

In our relationship with the world, we can now confidently say that South Africa has found her niche as an independent participant in world affairs.

Our starting point in these relations is the obvious: that South Africa is an African country. Thus we draw pride from the fact of increased trade with Africa reflected in a 70 per cent increase in exports and 60 per cent in imports since 1995. We shall continue to expand these relations and close co-operation with our sister African nations bilaterally and through the Organisation of African Unity (OAU), within the context of Africa’s renaissance. We are grateful that African nations have afforded us the opportunity to make our humble contribution to the resolution of problems and reconstruction in places like the now Democratic Republic of Congo (DRC), the Great Lakes Region and the Sudan.

During the course of this year, we shall host Africa Telecom, to work out strategies and plans for the continent to become part of the communications highway.

Within the Southern African Development Community (SADC), we were honoured to take collective leadership of the process towards a Free Trade Area. The matters to be resolved on this course are complex and, as to be expected, there is much individual self-interest. But the will and determination are there, including the difficult question of ensuring that the democratic gains that have been made over the past few years are not reversed.

As an active and respected part of the developing world, we shall host the Summit of Leaders of the Non-Aligned Movement (NAM) in August. As such, we shall be afforded the opportunity to play a leadership role as these countries, in their own terms, define the nature and direction of globalisation. All of us in these countries are concerned about the widening gap between the rich and the poor both within and among nations. But we also recognise the challenge of ensuring that our own co-operation helps to define the new world order.

As a country, we are making strides in this direction: as shown by the fact that today, Asia is our second largest trading partner after Europe; and we are starting to exploit the huge potential that exists with regard to Latin America. This year we started a strategic relationship with the People’s Republic of China, the biggest nation on earth. The launch last year of the Indian Ocean Rim Association is a great step that will re-establish, in the new age, strong relations that date back to pre-colonial days. At the same time, we have intensified dialogue with the North about a common human agenda as we enter the next millennium.

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In such dialogue, pertinent questions about the structure of the United Nations (UN) and its agencies, as well as the issues of the international financial system, the debt crisis and world trade, are on the agenda. There is world consensus that solutions need to be found to the causes and rampant effects of stock market crashes that can beggar even those economies which have got their fundamentals in place.

It is encouraging that the Commonwealth of Nations, a body straddling the North-South divide, and whose summit we attended last year, put the issue of economic development high on the agenda. Again, as a reflection of the place we occupy in international relations, this body decided to hold its 1999 summit in South Africa.

Our relations with North American countries, Europe and Japan have grown from strength to strength. We value these relations with our main trading partners and sources of investment and aid. More particularly, we have now reached the point at which negotiations with the European Union (EU) on free trade should soon reach finality.

We shall continue to make our humble contribution to the search for peace and the humane conduct of international relations. Our contribution on these issues, including the campaign for a ban on anti-personnel mines and nuclear disarmament, derives from our own experience of what humanity should not do to itself.

Ahead of any other country, South Africa destroyed its stockpile of over 200 000 land-mines in a record five months. The severed limbs of children, women and men in our neighbouring countries are a loud warning to us that, never again should our country be a source of destabilisation. As such, we shall support the stern action taken by countries whose peace is disturbed by any South Africans.

We are driven by this desire for peace when we urge for the resumption of Middle East peace talks on the basis of the Oslo Agreements. We are driven by what we believe are the long-term interests of the Palestinian and Jewish communities when we condemn prevarication and provocation by those who calculate that they can use might to prevent right. We condemn without equivocation violence perpetrated by any party, for it feeds animosity rather than encourages reconciliation.

In the same spirit, we call for a peaceful resolution of the conflict in Western Sahara and East Timor, and we shall do our best to assist where we can.

Wherever we go internationally, we are always moved by the appreciation of the world for our efforts in resolving problems that seemed intractable.

These international forces are always willing to assist in our exciting transition. But they recognise that, in the final analysis, our success will depend on our own efforts. They appreciate and have confidence in our economic environment and, equally, they expect the same among South Africans themselves.

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They respect our nation because they know we are contributing to the collective efforts of humankind redefining itself and reclaiming its humanity as we move into the new millennium.

This, our programme for 1998 is a humble contribution to the quest for a better world. As always, we are encouraged, first and foremost, by the fact that South Africans are ready, and they have rolled up their sleeves to build a society that cares.

These millions of South Africans are joining hands to sustain their democratic achievement; and they will protect it like the apple of their eye. They are filled with hope about the bright future that beckons. They shall not be distracted by the noise of a falling tree amidst the dignified silence of a new future starting to blossom; because they know that:

The foundation has been laid and the building has begun!

The Government's programme of action is structured around its principal policy thrusts, which bring together clusters of Ministries and departments in integrated action. The main initiatives are the following:

• Social service delivery.
• Macroeconomic Framework for Growth, Employment and Redistribution.
• National Crime Prevention Strategy.
• Governance and Democratisation.

The foundation for more rapid implementation of these policies has been laid. What does Government intend to do during 1998 to build on this foundation?

Alongside the immediate steps to deal with malnutrition, Government has longer-term programmes to create employment through land reform and job-creation programmes.

The year During 1998, there will see be a major focus on nutrition. The National Integrated Nutrition Programme, finalised in 1997, will be implemented within a framework discussed with the the provinces. The Primary School Nutrition Programme will increasingly be integrated with community development and 240 community-based nutrition programmes will be established by March 1999.

Allocation of state land to black farmers and redistribution of private land through the market to aspirant farmers will gain further momentum. These new farming ventures will benefit from improved provincial support services; improved financial services through a restructured Land Bank; improved market access from with the deregulation of marketing and closure of control boards, and improved rural infrastructural networks like roads, electricity and telephone services. By the end of 1998 the Agricultural Sector Investment Programme will have established black farmers in 18 commercial ventures, two in each province.

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Housing and infrastructure

With the obstacles to delivery having been overcome, the foundation has been laid for faster and sustained delivery. The number of houses under construction or completed under the subsidy scheme will pass the half-million mark during the year. Effect will be given to the decision to extend the subsidy scheme to rental and social housing; to housing meeting the special needs of the disabled, and to rural housing. The involvement of the people themselves in building their own housing will be further encouraged.

The capacity of housing boards, provincial and local government, non-governmental organisations (NGOs) and communities to contribute to sustained housing delivery of housing will be boosted by legislation, by the People's Housing Partnership and by the Masakhane Campaign.

Rural housing will also benefit from the Rural Housing Loan Fund. It will bring about the production of As a result of its establishment, 100 000 homes will be produced in the first five years. The living conditions of rural dwellers will also be improved through land redistribution and restitution.

During 1998, the pace of land restitution will increase, speed up both because of the preparatory work that has already been done on cases referred to the Land Claims Court or which will soon be heard, and because of legislation passed in 1997 which removes procedural delays. The amount of land allocated to people through redistribution will double to half-a-million hectares. Security of tenure will be improved for millions of rural dwellers through transfer of ownership of former 'homeland' and Development Trust land and as a result of through the enforcement of 1997 legislation to prevent unfair evictions.

The community water supply and sanitation programme will serve another a further one 1 million people during 1998. Under the R1,3 billion Municipal Infrastructure Programme, over 1 000 projects will have been completed in the course of 1998. In the end, this programme will have benefited more than 12 million people with new or rehabilitated infrastructure for water, sanitation, roads, refuse collection, electricity and community health care.

The electrification programme, which connected over 420 000 homes in 1997, will reach be extended to 450 000 more in 1998. Rural areas are also being supplied with electricity from solar energy in a programme that will eventually reach 16 000 schools, 2 000 clinics and 2,5 million homes. The installation of a further 580 000 telephones will improve communications for millions of people.

The health of the nation will be improved by nutrition programmes, better housing and supply of clean water. At the same time, primary health care will be further developed and improved during 1998, when another 165 clinics will be built during the year, and R100 million will be spent on the rehabilitation and reconstruction of hospitals. .

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Action to prevent disease will include the immunising   of millions of children against polio and measles, with meeting a target of 90 per cent of children under the age of one year being immunised by the year 2000. The campaign against to combat the TB epidemic, although not yielding quick results, will continue towards its aim of an 85 per cent cure rate.

Efforts to combat the spread of HIV/Aids will be strengthened during 1998 by the implementation of national Government’s Aids Plan which seeks to mobilise Government and civil society to change behaviour on a national scale.

The programme to reduce the cost of medicines to an affordable level will be extended from the Primary Health Care level, where it was introduced in 1996, to the rest of the health system.

In a partnership of Government, private sector and NGOs, access for the disabled to health care at all primary and other levels will be extended as will work to promote their socio-economic integration.

While continuing to improve the administration of pensions and grants to about three million beneficiaries, and eliminating fraud and corruption, the restructuring of the system will continue. During 1998, implementation of the new Child Support Grant will begin in 1998: over 370 000 about 400 000 children will benefit be reached from in a process that will reach three million by the end of five years. A new framework for Government funding of NGOs concerned with welfare will be implemented from June.

Social welfare services will be improved by programmes to re-orientate social workers, both public and private sector, towards the developmental approach in social service delivery and to build management capacity further in national and provincial government.

During the course of the year, the government will put before Parliament will consider new proposals to ensure adequate financial provision for people's health needs.

Integrated human resource development will be promoted by measures in the educational system, at work, and in the field of sport and leisure will all promote integrated human resource development.

The three-year campaign to restore a culture of teaching and learning which started was launched in 1997 will continue. The implementation of educational policy will focus on a curriculum development for the country's needs, including the introduction of Curriculum 2005 in Grade 1. Government Attention will attend also be given to teacher development;; promoting the most effective use of technology in teaching, and advancing Adult Basic Education and Training and early childhood development. A new HIV/Aids and Life Skills Education programme will be implemented this year.

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In terms of the the South African Schools Act, passed in 1996, national funding norms for schools will be finalised. During 1998 attention will be given to dealing with weaknesses in management highlighted by the low matric pass rate and problems with the delivery of textbooks.

With the higher education policy framework in place, the focus will be on implementation, to attain a system that is responsive to social and economic needs. In 1998, the National Student Financial Aid Scheme will again reach about 60 000 students in need of financial assistance.

A Skills Development Bill will be finalised during 1998 after discussion with Government’s social partners, to promote expanded investment in education and training.

The South African National Games and Leisure Activities (SANGALA), which involved a quarter-of-a-million new participants in sport and recreation during 1997, aims at half-a-million participants this year. Construction of sports and recreation facilities to broaden access will continue.

By 1995, the economy had been turned from stagnation to a trend of long-term growth. However, we have to achieve a new and higher growth path to create more jobs and produce resources on a scale to reach meet our goals.

Transforming our economy to meet the needs of our new democracy and at the same time gearing it for the to take its place in a competitive world economy are the twin objectives of the Macroeconomic Strategy for Growth, Employment and Redistribution adopted in 1996 to promote the realisation of RDP goals.

By the end of 1997, it was clear that sound economic fundamentals were in place. Despite turbulence in international financial markets, the South African currency remained relatively stable. The economy grew for a the fifth year in succession - although the rate of 1,7 per cent was lower than forecast, it is expected to recover to around 3 per cent during 1998. The structural changes the country needs for sustained and faster growth are in progress.

Among the new trends of recent years are the role of private sector investment as the driving force behind growth;, rising productivity; and continued strength in export performance, and a the steady increase in manufacturing value added in the overall economy.

A range of measures has been initiated to promote the continuation of the se positive trends, and the process will continue in 1998.

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Infrastructural development

Social infrastructure development during 1998 will include s the projects referred to under Housing; Health Care and Educational Facilities; Municipal and Rural Infrastructure, and Recreational Facilities. In addition, Major capital expenditure will upgrade our telecommunications infrastructure; develop our national water resources, and improve the road transportation network.

The programme for the year includes the start of road construction in the Maputo Development Corridor Initiative. Other large SDIs involving investment in roads, and other infrastructure and as well as industrial enterprises will reach further stages of planning and implementation. Regional initiatives include the Lubombo Agriculture/Tourism SDI; the Fish River SDI in the Eastern Cape, based on proposals for a large port at Coega, and the West Coast SDI. Metropolitan corridors will combine industrial hubs, housing, roads and other infrastructure - the most advanced of these is the Philippi/Wynberg Corridor in Cape Town.

Within the SDIs are some 20 or more mega-projects - involving investments of more than half-a-billion Rand each - many of which are in progress or will be nearing implementation during 1998. At the beginning of 1998, some 390 projects to the value of R77 billion were at different stages of planning or development, with a potential to create 60 000 jobs.

There is a range of government measures to promote investment that helps restructure the economy in ways that boost productivity, competitiveness and employment. These measures will continue to make their impact felt during 1998.

Of critical importance is the Presidential Jobs Summit which will bring together organised labour, business and Government to seek solutions to persistently high levels of unemployment, in the context of a broader all-round partnership for growth and development.

Government will continue to enhance support measures for the promotion of technology. These actions include the Technology and Human Resource for Industry Programme (a partnership between industry and higher education), , and programmes to support industrial innovation, technology transfer, productivity, training and better management.

Investment incentive tax measures adopted at the end of 1996 (accelerated depreciation and the tax holiday programme) have facilitated R6 billion in private investment and helped create 39 000 jobs in 1997. These goals will continue to be promoted, especially by Investment South Africa, the national investment promotion agency launched last year. During 1998, the Cabinet Investment Cluster will put in place a mechanism for interdepartmental coordination in an integrated approach to investment for growth and development.

Employment will also be promoted by the small business support programmes and the National Industrial Participation Programme which ties tenders with large import content to participation in the South African economy.

During 1998, which has been declared the Year of Science and Technology, a review of South Africa's Science and Technology system will take the country closer to a system that meets its economic needs.

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Restructuring of state assets

With some major structural problems in the parastatals themselves largely overcome, restructuring of state assets will continue at a steady pace. With Following the sale of regional radio stations, in 1996 and Telkom’s acquisition of a strategic equity partner and the sale of Sun Air in 1997 achieved, 1998 will see further steps in the restructuring of SAA, the Airports Company, Autonet, Safcol and Alexkor (diamond mining).

With the achievement of a reduced deficit in 1997/8, the budget for 1998/9 is based on a planned 3,5 per cent deficit.

Far-reaching measures will continue to improve the management of public finances. During 1998 there will be a focus on improving management information on budgets and expenditure patterns in all sectors and all three spheres of government, as well as further improvements in the effectiveness and efficiency of tax collection.

Multi-year budgeting, through the MTEF, begins with the 1998/9 budget. The shift towards social services and combating crime which was achieved in the 1997/8 budget will continue throughout the three years 1998/9 to 2000/1 of the MTEF.

The launch of the NCPS in May 1996 represented the start of a major offensive against crime, with involving much better coordination between government ministries and departments as well as the security forces.

As part of the escalation of that offensive, there has, since last year, been stronger political management and coordination of the strategy through the Presidency and Cabinet.

One area of emphasis will be the upgrading of the criminal justice system to turn it into an effective weapon against crime.

Further significant progress will be made during 1998 through the provision of the necessary infrastructure for courts, including basic facilities such as computers; the appointment and training of court officials; improvement in the investigative capacity of the police, and a more effective witness protection programme. Children testifying in court will be better protected. There will also during this year be an emphasis on better court management to improve the speed with which cases are handled to combat corruption. The appointment of a National Director of Public Prosecutions will help streamline the system.

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Work on a longer-term major overhaul of the criminal justice system will gather pace during 1998 as the Government implements with the implementation of plans to create a single integrated system comprising police, court, prison and welfare functions, with a common database and information system.

Crime statistics will be published and improved continuously. While these figures indicate that there is success, the overall level of crime is too high

Another major emphasis will be on more effective coordination of activities focused on priority crimes.

Border control will be tightened by reducing the number of airports with international status to 10 and the number of commercial road entry points to 19. This will have a major impact on the control of contraband and evasion of customs and excise duties, and as well as narrowing the opportunities for syndicates involved in drug trafficking, illegal arms dealing and hijacking

During 1998, for a second year, vehicle theft and crimes relating to firearms, rape, child abuse, domestic violence, corruption in the criminal justice system and commercial crime will be the target of improved priority focus. Among other things, the police and revenue service will coordinate their investigations into prime suspects in organised crime...

Developing the capacity of the police to combat crime will include focusing on crime analysis, intelligence and rural protection, amongst other things. More attention will be paid to a greater focus on policing major metropolitan areas, especially Johannesburg.

Action built on provincial crime summits held last year year, will be taken will be taken to facilitate the involvement of provincial governments and local authorities in crime prevention.

More attention will be paid to social crime prevention issues, including the role of sport, recreation and community values.

If we are To reach Government’s goals, South Africa’s democratic Constitution must be implemented in ways that ensure that authorities in every sphere can act as effective instruments of change and make efficient use of public resources.

In order To promote understanding of the new Constitution, there will be an ongoing outreach programme to educate all South Africans about the fundamental changes it brings.

A report will be made to Parliament during 1998 on the progress made in implementing the new Constitution and establishing new institutions that support democracy.

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Steps will be taken towards Legislation will be introduced providing for the establishment of establishing the Commission on the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities.

The National Council of Traditional Leaders, established last year, will help find assist in finding the best ways of integrating traditional authority in within the new democratic system, including building enhancement of their capacity and encouraging their participation in local government, community empowerment, development and land administration.

In order to give effect to the people’s constitutional the rights, the National Youth Commission, established in 1996, as well as the Office on the Status of Women and the Office on the Status of the Disabled, both established in the Presidency during 1997, will pursue an enshrined in the constitution, during 1998 active programmes of policy development and implementation this year.

The South African Constitution introduces a new era of co-operative governance between the three different spheres of government - national, provincial and local. Developing this system will be a major focus for 1998, which will be built on the establishment of the National Council of Provinces in 1997 and on the non-statutory intergovernmental structures that have been functioning over the past three years. During the year, a national policy on co-operative government will be developed through discussion and consultation, which will lay the basis for a White Paper in 1999.

The establishment of nine provinces has brought Government closer to the people, created more space for regional diversity, and has set up mechanisms for the implementation of national policies. The strengths and weaknesses of the provinces were highlighted by the 1996 publication of an audit of provincial government by the Provincial Review Task Team, and again in 1998 when provinces for the first time devised their own budgets for the use of finance allocated to them as a block by Central Government., principally for use in Education, Health and Welfare.

On the basis of this experience, attention will be given during 1998 to developing financial management capacity in provincial government within the framework of co-operative governance and the MTEF.

The local government elections, completed in 1996, established a legitimate but interim foundation for local government. The final structure of the local government system will come out of a review process based on a White Paper released early in 1998.

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This year Government will help There will be an emphasis during 1998 on developing the capacity of the new local authorities to administer finances, through training and legislation. Project Viability will help stabilise the finances of further local authorities through training and technical assistance. Guidelines are being formulated, through consultation, for facilitating and regulating public/private partnerships at municipal level for infrastructure delivery. A redesign of the municipal fiscal system will include provision for poverty alleviation grants from Central Government direct to local government.

Community/municipal partnerships will be promoted through the President's Award for Community Initiative.

The transformation of the Public Service includes the right-sizing of this service following the integration of the previously separate administrations, and its reorientation towards reconstruction and development.

The programme of action for 1998 will include discussions aimed at finding ways of achieving the setting of further appropriate staffing levels.and negotiations on procedures for achieving them, and their implementation during the course of the year

A thorough review and reform of management systems within the Public Service will be advanced by the work of the Provincial Review Task Team’s which last year published its audit of provincial government. Greater decision-making, autonomy and responsibility for Public Service managers, within a framework of national norms and standards, is one of the themes of the new Public Service Regulations which will come into force during 1998.

A White Paper on Public Service delivery, entitled ‘Batho Pele’, will be the basis of action during 1998 to transform Public Service delivery in ways that put the people first.

The report of the Presidential Review Commission will assist in planning for long-term changes in the public sector.

Reports submitted by Ministries and Departments

At the end of each year the Ministries report to the President on their activities and plans for the year. What follows are brief abstracts from the reports submitted at the end of 1996 and 1997.

Good progress has been made towards a more efficient agriculture which corrects past inequalities of access to resources and support services. This will bring about faster growth of income, production and exports leading to a more self-reliant commercial farming sector; an active medium and small-scale sector; better household food security, and a stronger stimulus to the rest of the economy.

A Green Paper on Agricultural Policy will be published during 1998.

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A framework for transforming agriculture was set by the 1995 White Paper. It gives priority to national and household food security, income and job-creation and sustained animal and plant health. Agricultural markets have been liberalised and access to them broadened, by legislation and by changes to the National Agricultural Marketing Council (NAMC), which is now also representative of small farmers and labour. With the phasing out of marketing control boards almost complete, the NAMC will concentrate on integrating small-scale and emerging farmers into the mainstream.

Agricultural policy is being reviewed, with the focus still on food security and sustainable use of agricultural resources including water - a Green Paper will be published during 1988.

Agricultural markets have been deregulated since the Marketing of Agricultural Products Act came into effect last year. Marketing control boards have been closed and trusts established to develop the marketing system. The new National Agricultural Marketing Council, representative also of small farmers and labour, will increasingly concentrate on promoting competition and integrating small and emerging farmers into the mainstream.

Establishing a viable small-scale farming sector is critical to revitalising agriculture; generating income and jobs; and food security. Government seeks to provide financial services while reducing dependence on the state, and to develop human resources, technology, marketing systems and infrastructure. Tractors have been donated by private companies. Groups of small farmers have been trained inside and outside the country. By the end of 1997 over 1 300 new small-scale farmers had been settled, 2 900 food gardens started and 5 out of 18 planned agribusiness ventures were under way.

The Land Bank has been restructured with a new mandate, board and management. It can provide new financial services to a wider range of clients. Among other things, rural women will be able to borrow as little as R250 from the Bank.

The impact of change is encouraging. Agriculture has grown in the past few years, after a period of stagnation. The private sector, including small and medium enterprises, is expanding and diversifying in production, processing and trade. Agricultural exports, mainly from high-value labour-intensive production, are growing faster than in any other sector of the economy.

Progress is being made towards implementing the SADC Free Trade Protocol. However, restricted access for South African exports to EU markets will affect future growth and job-creation.

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Economic growth and international co-operation.

The sector has grown in the past few years after a period of stagnation. Our strategy of opening markets and encouraging exports, including the removal of trade distorting policies, has helped agricultural exports grow faster than any other sector. In addition exports have shifted towards high-value, labour-intensive products. Research has opened up new export opportunities, including the a Camel Pox vaccine for the North African market and new fruit varieties. We are making progress towards implementing the SADC free trade protocol.

After extensive a broad consultative process, including a national conference, the path towards land reform was mapped out in a White Paper adopted in 1997.

The Department is developing has been integrated and is creating a uniform system of land administration in consultation with the provinces. It is working on a system for registration of informal rights. The Development Facilitation Act, 1995,, which creates a new framework for democratic land use, planning and development - it, is being implemented and land development tribunals have been are being set up in seven provinces.

The pace of land reform has increased rapidly since it started in 1994been more challenging than anticipated but it is now accelerating. New legislation which was passed last year and will be passed this year, will speed it up still more. to speed up the restitution has been enacted and further legislation before parliament will lead to faster redistribution.

Restitution of land rights: The Commission is investigating over 19 000 11 000 urban claims and 3 500 rural claims. - Seventeen have been resolved with 24 000 people recovering land.

Redistribution of land: Over Some 340 land redistribution projects under the subsidy system are completed or under way, affecting 685 000 households, have been completed or are under way. These projects involve over three million hectares of land, of which over 220 000 have already been transferred. or 325 000 people - over 90 0000 people have already received land).

Equity schemes: There are currently 16 equity schemes (partnerships between businesses, investors and land reform beneficiaries) ranging from a small chicken farm to a fruit and sugar cane farm with 450 households.

Tenure reform: The Labour Tenants Act, 1996, virtually ended unfair evictions of labour tenants, benefiting 250 000 people. The Extension of Security of Tenure Act, 1997, brought greater security to six million rural dwellers on land owned by others. A system for registration of informal land rights on state, former homeland and trust land is being developed.

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Reform of the Performing Arts Councils began when new and more representative boards were appointed and facilities were opened to a broader spectrum of artists. Now each province is being encouraged to establish its own performing institutions. Museums are transforming towards a National Museum Service to promote the heritage of all South Africans.

, The Legacy Project is formulating a portfolio of heritage projects for adoption during 1998, to promote accessible and inviting commemorative sites that are seen as an expression of a living heritage and can therefore be developed sustainably.

Culture and the economy: Reprioritising the budget: New institutions

The Cultural Industries Growth Strategy will develop the potential for arts and culture to contribute to the economy and to create employment. The cultural industries include craft, film, television, music, and the publishing and multi-media sectors. Cultural tourism and the craft industry will play a significant role in several of the SDIs. Business Arts South Africa, established last year, facilitates a partnership of Government and the private sector in the sponsorship of the arts.As part of a more representative funding policy, community-based arts and culture organisations are receiving more funding. New institutions will reinforce this. We have already established a new National Arts Council, to promote universal access and equity, and a National Film and Video Foundation with a R10 million budget. A National Heritage Council to foster our diverse heritage will be set up in 1988.The Cultural Industries Growth Strategy will boost the economic impact of arts and culture.

The National Archives Act came into force in 1997. It commits the Service to transparency and accountability, RDP imperatives and to high standards. The senior management team was restructured with a transformation unit to foster democratisation.

A draft National Language Plan has been drawn up along the lines of recommendations made by the Language Plan Task Group, for discussion during 1998. Multilingualism, which the Task Group strongly supported, will be promoted by a Multilingualism Awareness Campaign. The Pan-South African Language Board has been functioning since 1996. A new National Language Service, which will follow the Board’s recommendations, will be set up in 1998.

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Science and technology Transformation

The 1997 Science and Technology (S&T) White Paper established policies for S&T in support of national goals. A number of It initiatives which started in 1997 and will be completed this year will enhance the impact of S&T on economic and social development. The department started three processes: a review of Science and Technology institutions; creating an accountability framework for science councils, and establishing an innovation fund for competitive allocation of research funds.

A review of the science councils, now completed, will provide a basis for a better system of innovation and greater accountability and transparency. Proposals for a new accountability framework for science councils will go to Cabinet during 1988. A national audit and other S&T initiatives include a stocktaking of the strengths and weaknesses of the research system and an assessment of the brain drain; a research and technology foresight exercise will also be completed this year.; building human resources and promoting international co-operation The foresight exercise will guide South Africa on future technologies with a global role.

Government has declared 1998 the Year of Science and Technology in order to create promote public appreciation of S&T awareness and interest, especially among young people.

The Telecommunications Act, 1996, Bill has fundamentally changed this telecommunications sector. The department now concentrates on policy: the after other functions were were transferred to a new regulatory body, the South African Telecommunications Regulatory Authority (SATRA), and a new Universal Service Agency.

During 1998 a report will be published on Proposals to for a merger of SATRA and the Independent Broadcasting Authority (IBA) will be published this year.

A cluster of Ministries will develop a strategy to improve government services by using information technology., and the department will launch an Information Communication Technology Strategy

The 1998 White Paper on Postal Policy , based on last year’s Green Paper, will lead to be followed by new legislation and restructuring of the SA Post Office. Operation FuturePost is promoting efficiency; customer orientation and business sustainability. Both management and unions are involved in a campaign to combat crime, in response to mail violation and theft.

Legislation is being prepared to allow the Post Office to be the country’s only lottery agency.

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Telkom

The sale of 30 per cent of Telkom equity to SBC International and Malaysia Telekom was completed during 1997. This investment allows Telkom to roll out three million telephones in six years and to restructure Telkom for universal access. After installing 421 000 telephones during the 1997/8 financial year, Telkom plans for 580 000 the following year.

During 1998 Telkom should sell the finalise the sale of 10 per cent of its shares allocated to black economic empowerment and telecommunications employees of the sector.

A One of the central aims in restructuring our telecommunications services is access for to ensure that all South Africans have access to information resources in education, medicine and other sectors, wherever they are.

A plan to reallocate the use of the radio-frequency spectrum in a way that enhances growth, productivity and socio-economic development, is being should be largely implemented through Project SABRE (South African Band Replanning Exercise).in five years.

A White Paper on Broadcasting Policy, following last year’s Green Paper, will provide the basis for a new broadcasting law during 1998.

Following a review of the SABC, which was completed last year, progress has been made in right-sizing the organisation, improving programming and marketing, and bringing in new skills and talent. A new and smaller SABC Board was appointed in 1The principles of freedom of the media enshrined in our Constitution will be given effect when work is completed on a mechanism to fund the public broadcasting mandate of the SABC.

The goal of freeing the airwaves was promoted by the sale of six regional radio stations, allowing in 1996 new broadcasting entrepreneurs to emerge and promoting diversity of ownership. Eight new radio licences granted in 1997 and a new television licence granted this year represent an historical turning point in South African broadcasting. Having issued 88 short-term licences for community radio stations, the IBA will now be issuing four-year licences. South African and Danish government funding will help establish two community stations in each province in areas where communities are unable to establish them.help are unable

A White Paper on broadcasting policy, following last year’s Green Paper, will provide the basis for a new broadcasting law during 1998.

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Human resource development

The sector’s needs for highly skilled personnel are being promoted through a Human Resources Development Fund established under the Telecommunications Act will be launched during 1998.

Since the new Constitution took effect in 1997, there has been a major effort of constitutional education has to promoted the ethos of the Constitution and its contents. Twelve million copies were distributed during National Constitution Week in 1997. Implementation of the Constitution is being monitored.

Two provinces have written provincial constitutions. The Constitutional Court did not certify that of KwaZulu-Natal but certified the Western Cape one the second time it was submitted.

The phased transition of local government continues. The integration of old structures and the appointment of transitional councils prepared the way for South Africa’s first democratic local government elections in 1995/6. These elections took transformation into an interim phase. Following a comprehensive review and a Local Government White Paper Summit last year, policy will be finalised early in 1998 for the transformation of local government into as a developmental sphere in its own right in the context of co-operative governance.

The financial status of many local authorities and their capacity for financial management causes is a matter of concern. Project Viability is helping 130 municipalities experiencing difficulties in achieving financial stability through training and technical assistance. More municipal capacity-building initiatives will be launched in 1998, and a White Paper on Disaster Management will be published.

The R1,3 billion Municipal Infrastructure Programme has reached 12 million people in more than 1 000 projects, employing 240 000 and training 78 000.

The Masakhane Campaign gained new momentum in 1997, building . It aims to build a strategic partnership between Government and communities. A Masakhane Focus Week and the Presidential Award for Community Initiative helped boost the campaign, as will again be the case in 1998.

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Traditional Affairs and Cultural Commission

Wide consultation has taken place on the establishment of the Commission for the Protection of the Rights of Cultural, Religious and Linguistic Communities for which the new Constitution makes provision. Legislation is expected in 1998.

The National Council of Traditional Leaders was established in 1997 after all the provincial houses of traditional leaders had been set up. In order to clarify the role and position of traditional leaders, a policy document will be drafted in 1998 as a basis for a White Paper.

The Intergovernmental Forum and MinMEC (Ministers and Members of Executive Councils) structures have improved co-operation between spheres of government. National and provincial development programmes have become more coordinated. In 1997/8 for the first time, provinces received global budget allocations and drew up their own budgets. A discussion document on co-operative government will soon be published in preparation for a Green Paper.

The Department dealt with several interprovincial boundary disputes during 1997. Interim proposals include the interprovincial transfer of functions on an agency basis and cross-border delivery of services.

The treatment of offenders is changing in line with the Constitution and international practice. A new Correctional Services Bill will go to Parliament during 1998.

Changes include new youth development centres at Brandvlei and Ekuseni (and one with another at Baviaanspoort to open in 19988), and new programmes for juveniles. There is a more individualised approach to the development of offenders. Community Service has reached expanded to most areas. Within As part of the NCPS the Department is helping to strengthen the justice system.

Prison development seeks to eliminate overcrowding and enhance a human rights culture. A plan for electronic monitoring of parolees, probationers and awaiting-trial offenders in the community is awaiting Cabinet approval. This plan could reduce the prison population by 10 000.

The building programme has accelerated. Five new prisons have been commissioned since 1996 (Umzinto, Brandvlei, Porterville, Goodwood and Malmesbury) and two are at tender stage (Empangeni and Pietermaritzburg). A closed maximum security unit opened in Pretoria in 1997 and a super maximum prison is planned for Kokstad. Plans are afoot Plans are being made to build four new prisons in partnership with the private sector in Louis Trichardt, Boksburg, Bloemfontein Grovel and Barberton.

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Prison security has been strengthened under the NCPS, through the erection of electrified security fences at 19 prisons. Another 21 will be electrified during 1998.

Transparency has been increased promoted by promoting public participation in parole policy design; active support for the Truth and Reconciliation Commission and Human Rights Commission; support for community law centres in monitoring children held under Section 29; participation in a Transformation Forum, and briefings to the Parliamentary Portfolio Committee. The Department has exposed prisons and prisoners to the media (through, for example, choirs).

Communities are represented on Correctional Boards and on the Parole Boards to be established during 1998, as well as on the National Advisory Council. A greater role for NGOs, and community-based organisations in literacy training and, prisoner motivation and so on has increased community involvement. Community safety centres will be set up in 1998 as part of the NCPS, each of them with a community corrections office to monitor and reintegrate offenders.

The Department has been demilitarised since 1996. Training now emphasises participate management and a human rights culture. The year 2000 target of having By 2000, 70 per cent of staff will be from those who had previously been currently underrepresented, has already been achieved. The Management Board is now more representative and a new commissioner has been appointed.

A national consensus on defence has emerged through the 1996 White Paper and the Defence Review, whose first phase Parliament has adopted. During 1988, the Review will be completed and the Military Disciplinary Code and Defence Act rewritten.

Military and civilian functions have been separated through the establishment of the Defence Secretariat. The Secretary of Defence controls expenditure on behalf of the Minister. A Civic Education Programme is being implemented to instilling democratic values throughout the South African National Defence Force (SAND).

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Integration and rationalisation

Integration and demobilisation of the eight former forces is complete. Provincial commands will gradually be phased out. The Defence Force is downsizing from 100 000 to a peacetime target of 70 000 through demobilisation, voluntary severance, retirement and resignation. Assistance to those leaving includes: demobilisation and retrenchment packages; Service Corps training; assistance from veterans’ associations, and struggle pensions for former Umkhonto weSizwe (MK) and Assassin People’s Liberation Army (APPLE) members who qualify. A Directorate of Military Veteran Affairs is to be established.

The Force is becoming more representative: it is now 69 per cent black and 19 per cent female. There are 13 black generals, including the first black woman general and the first black head of an arm of service.

A reduced Defence Budget and strict control of the arms industry reflect are part of continuing demilitarisation. Compulsory national conscription has been replaced with an all-volunteer force. A new Defence Liaison Council made up of business and labour leaders will promote the part-time force.

During 1997, South Africa declared a comprehensive ban on anti-personnel mines and destroyed over 240 000 mines. Government chaired the Oslo conference and signed the banning convention that emerged from it.

South Africa joined seven other were amongst eight SADC countries in the Blue Hung peace-support exercise in Zimbabwe in 1997. SAND humanitarian support has included airlifting medical supplies, mine clearance; and food for Rwandan refugees. The Department participates in SADC bodies concerned with peace support; disaster relief; counter-coup measures and early warning systems. The South African Navy has been in joint exercises with foreign forces, and an International Fleet Review in Cape Town marked the Navy’s seventy-fifth anniversary.

Within As part of the NCPS, up to 8 000 troops have been deployed to assist the South African Police Service (SAPS). The Army has taken over border patrolling. It has assisted other departments in drought relief, flood relief, immunisation, and the national census. Defence acquisition, managed jointly with the departments of Finance, and Trade and Industry, is being structured to bring substantial investment in the economy.

A single, unified and non-racial education system has been established. Policy for such a system has been created through commissions, White Papers and legislation. This year a report on gender equity and Green Papers on Further Education and Training and on Learners with Special Education Needs will be drafted. The emphasis will shift from policy development to service delivery through more focused collaboration between national and provincial departments.

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Schools

The Interim Constitution opened the school system to all learners, and the South African Schools Act, 1996, established formal unity. General education is now compulsory for all children, and almost all of the 30 000 public schools have now elected governing bodies.

A new national curriculum based on the principles of outcomes-based education was introduced in all Grade 1 classes in January 1998. New policy and a national Early Childhood Development Pilot Project are steps toward a compulsory reception year for all children. The consequences of apartheid education are reflected in poor senior certificate results, and high repetition and dropout rates. As a result, special attention is being given to building the capacity of teachers to address this.

The School Register of Needs survey, completed last year, detailed the massive inherited infrastructure backlogs and provided a good basis for planning investment. The RDP programmes for school refurbishment and school building are being completed, and a new phase of investment is beginning under the MTEF. The Primary School Nutrition Programme reached 4,9 million children in 1997.

The 1997 White Paper on Higher Education and Higher Education Act, 1997, set the scene for transformation of the system. A new Council on Higher Education will be established in 1998. Students have been assisted with more than R1 billion in grants and loans through the National Student Financial Aid Scheme.

The national Campaign on the Culture of Learning, Teaching and Service launched last year is making a strong impact, especially through mobilising opinion and building community partnerships.

A new policy and multi-year plan for Adult Basic Education and Training have been adopted, and 150 000 adult learners have been targeted for 1998.

Some 8 000 secondary school teachers were trained last year in Life Skills and HIV/Aids education, and the project will expand in 1998.

A national Education Management Development Institute and a provincial assistance unit in the Department are being established to address problems related to poor management capacity.

South Africa has resumed membership of the United Nations Educational, Scientific and Cultural Organisation (UNESCO) and will host the seventh Unesco Ministers of Education in Africa Conference during 1998, as well as the SADC ministerial meeting on human resource development.

Policy for a single system for all children has been established with the help of commissions, through White Papers and legislation. A national language-in-education policy has been adopted. There will be a report this year on Gender Equity and Green Papers on Special Educational Needs and Further Education and Training

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Schools

After the Interim Constitution opened our school system to all, the old separate education departments have been integrated. Matric exams are now common to all students. By the beginning of 1998, most schools had elected governing bodies. A new national curriculum is being introduced through Curriculum 2005, starting in 1998 with Grade 1.

With examinations now unified attention will be given to addressing the level of the matric pass rate which fell to a disappointingly low level in 1997. The building of education management capacity in the context of the Medium-Term expenditure Framework will help address problems experienced during 1997 regarding

The RDP programmes for a Culture of Learning & Teaching; for School Building; and for funding of youth community colleges have promoted the upgrading and expansion of facilities. The Primary School Nutrition Programme reached 4,9 million pupils in 1997.

The 1997 White Paper on Higher Education set the scene for the transformation of the sector. The Higher Education Act has been promulgated and a Council on Higher Education will be appointed during 1998. The Council will work with Government for new funding and planning frameworks, including a sustainable National Student’s Financial Aid Scheme based on government and private sector funding. Since 1996, R300 million a year has been available for financial aid to needy students

Adult Basic Education and Training is a priority, with 150 000 learners targeted for 1998. A National Early Childhood Development pilot project is the first step towards a compulsory reception year for all children. The need to upgrade science and technology education is being addressed by the SYSTEM project (Students and Youth into Science, Technology, Engineering and Mathematics) - already 800 students have been taught. The Technology 2005 project is training school technology teachers.

Life Skills and HIV/AIDS education is starting in 1998 after the training of 8 0000 secondary school teachers last year.

The goals of transforming the Department are efficiency, service to the public and representivity. Norms and Standards for School Funding are being finalised in consultation with stakeholders. Problems experienced in 1997 are being addressed with a focus on improving education management.

We have resumed membership of UNESCO and are involved in SADC human resource development. We have concluded technical/financial assistance agreements with a number of governments.

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Tourism development is being promoted through training and education; prominence of tourism in SDIs which empower previously marginalised entrepreneurs, and attention to tourist safety. Sixteen per cent more foreigners visit South Africa per year than three years ago.

Implementation of the White Paper on Tourism Development and Promotion will be assisted by a Tourism in Gear Policy. This is aimed at foreign exchange earnings of R23 billion by the year 2000, 300 000 new jobs and an increase in tourism’s contribution to the gross domestic product (GDP) from 4,5 to 8 per cent.

A new South African Tourism (Satour) Board was appointed in 1997 with the brief to restructure the organisation and improve international marketing. International links are developing around South Africa’s membership of the World Tourist Organisation and the Council of the Regional Tourism Organisation of Southern Africa. The Department is the SADC's contact point for tourism.

A White Paper on National Environmental Management is to be finalised during 1998 will introduce a new framework for environmentally sustainable development. Environmental management has become an important aspect of the SDIs, and Environmental Impact Assessment is now compulsory for all major development projects.

A PA White Paper on the protection and conservation of our country's rich biological diversity, adopted last year, will be implemented in 1998. The Wetlands Conservation Programme has already registered 290 natural heritage sites and 1 400 wetlands.

Policy for Integrated Pollution Control and Waste Management is being developed to streamline the system and to reduce duplication and fragmentation.This includes regulations already promulgated making it compulsory to do environmental assessment of development projects.

The Global Environmental Facility has approved funding for the Table Mountain Project and the Biodiversity Support Programme. South Africa active role in regard to the natural environment in the Antarctic and Southern Ocean.

A White Paper on the protection of the country's biological diversity, adopted last year, will be implemented in 1998. The Global Environmental Facility has approved funding for the Table Mountain Project and the Biodiversity Support Programme. South Africa continues to be active with regard to the environment in the Antarctic and Southern Ocean. South Africa ratified the World Heritage Convention last year and is nominating three sites for World Heritage status, namely Robben Island, the St Lucia Wetlands and the Sterkfontein Hominid Site.

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Sea Fisheries

Legislation on a National Fisheries Policy will be drafted during 1998, to promote restructuring of the industry and environmental protection. Issues dealt with include regulation of public access and equity. Co-operation with SADC in building capacity and sharing expertise continues. Pending restructuring of the fishing industry, interim relief is being provided for impoverished fishers. Co-operation with SADC in building capacity and sharing expertise is increasing.

Co-operation programmes within SADC include water resource management. The South African Weather Bureau is the regional specialised meteorological centre responsible for providing forecasting products. The Weather Bureau is also giving operational training opportunities to meteorologists and technicians from the region and technical assistance to some other countries. Co-operation within SADC includes water resource management.

Transformation and restructuring of the Department are guided by the Constitution, policies and demand for delivery that democracy has brought about. Functions have been transferred to the department from former TVBC countries and other national departments. An institutional audit in progress will lay the basis for integrated and more efficient implementation of policy. Since 1994 black representivity has increased by 42 per cent and gender by 29 per cent.

The Government reduced the fiscal deficit from 5,2 per cent of GDP in 1996/7 to 4,3 per cent in 1997/8, and with plans for a 3,5 per cent deficit is planned for in 1998/9. Although GDP growth was lower than anticipated, during 1997/8 6/97 improved financial management and tax collection combined with careful expenditure management fiscal discipline to maintain a sound fiscal policy to lower the deficit.

Substantial progress has been made in reallocating apartheid-type expenditures, and the 1997/8 budget achieved a significant shifted expenditure towards social development and poverty alleviation.

Government initiated introduced a major budget reform in 1997 with the initiation start of three-year budgeting within a budgeting through the MTEF to take effect with the 1997/8 budget. Nineteen ninety-seven It was also the first year in which provinces received an equitable share of revenue from the national treasury, according to a formula developed by of the Fiscal and Financial Commission, and were required to develop their own budgets.

Monetary policy is constrained by a combination of factors, namely the level of reserves, exposed forward cover and the deficit on balance of payments. While a depreciated rand brings opportunities for increased competitiveness, it a too-weak Rand can also import inflation. Attention has therefore been given to stabilising the currency, contributing to greater investor confidence and a strong inflow of capital in 1997.leading to its being relatively stable compared with other emerging currencies.

The rate of inflation resumed its downward trend during 1997.

The phased relaxation of foreign exchange controls went was taken a step further during 1997 with regard to the export of currency by individuals and investment in the SADC region.

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Revenue collection

Tax collection is a high priority. The South African Revenue Service (SARS) has been restructured from Customs & Excise and Inland Revenue and is now autonomous within the Public Service. Revenue rose by 10,7 per cent 9,2% in the first 8 months of 1997/8 compared with the previous year. Over 30 000 taxpayers were registered or located through a tax-relief campaign conducted in during the 1996/7 financial year.

A new chief directorate deals with all development finance co-operation. Capacity is being developed in the departments of Finance and State Expenditure to meet the challenges of creative development financing and support for project management. Apart from carry-through costs of original projects, the funding of RDP objectives has been absorbed into the main budgets of departments and provinces.

The Government is committed to contributing to the African Development Bank efforts to finance African development. The country’s relationships with the World Bank has deepened: six grants have been received, and a Country Assistance Strategy is . Is under way.

New foreign policy objectives have been refined through broad consultation around a Foreign Policy Discussion Document and a draft White Paper. South Africa has effectively doubled its diplomatic ties since 1994. Altogether 97 96 foreign embassies and 59 57 consular missions have been established in South Africa.

Relations with southern Africa are a cornerstone of foreign policy. As SADC chair since 1996 South Africa continue to co-operates with its neighbours for balanced regional development and regional stability.

Exports to Africa have grown by 70 per cent in the three years 1995 to 1997since 1995 and imports by 58 per cent60%. As OAU member, South Africa assisted the Zaire/Congo peace process and worked with the DRC and other war-ravaged countries for reconstruction. Legislation to curtail South African-based mercenary activities and a draft White Paper on participation in Peace-Support Operations will be put before go to Parliament during in 1998.

Europe: Good relations are symbolised by many high-level visits in both directions and agreements to boost trade, aid and technical assistance. Bilateral Extended trade negotiations with the EU should be concluded in 1998 and should to the benefit of SADC and the Southern African Customs Union.

Asia and the Indian Ocean Rim: Relations with Asia are a priority and the region is now our largest trading block after the EU. Relations with China have been normalised. The Indian Ocean Rim Charter was adopted in 1997.

Middle East: Relations with the Gulf are expanding rapidly, bringing increased exports. Relations with other Middle East countries continue to deepen and diversify. South Africa supports the Middle East peace process.

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North America: The Bi-national Commission opens the way to closer ties in various fields. Strong United States investment in South Africa continues.

Latin America : Our relations with Latin American countries are expanding. South Africa is now a member of the Zone of Peace and Co-operation in the South Atlantic.

Government has actively supported UN reform in line with the policies of the NAM and the African Group. We have taken initiatives on Our role in arms control in has grown through membership of the Conference on Disarmament and as well as other forums including involvement in the Nuclear Test Ban Treaties and Oslo Conferences aimed at banning anti-personnel mines.

South Africa hosted the ninth United Nations conference on Trade and Development (UNCTAD) conference and will host the 1998 summit of the NAM Summit in 1998 and the Commonwealth Summit in 1999, whose chair we will also become. Such events allow Government to help sharpen the focus on issues facing developing countries and to work for a new international order. South Africa has ratified a number of conventions including those on the rights of women, children and refugees, and will act as this year become chair of the UN Human Rights Commission.

After integrating former so-called homeland structures, the Department was rationalised, which included making 250 staff redundant. Since 1994, 90 per cent of appointments and 48 per cent of foreign postings have been black. Sixteen Heads of Mission are now women, 12 of them black. A Gender Unit and a Transformation Unit soon to be established will apply the Department’s affirmative action policy.

All The former separate health departments have been integrated into one national health department with nine provincial departments and 45 regional offices. Free health care for pregnant mothers and young children was introduced in 1994 followed in 1996 by universal access to primary health care was introduced in April 1996. A National Health Bill will be introduced in 1998 to keep up the momentum of improvements., and The implementation of other developments are charted in the White Paper on the Transformation of the Health System will be completed by the year 2000.

Together with stakeholders, a policy on national health insurance has been developed and legislation for better control of medical aid schemes will go to Parliament during 1998. A new Drug Policy launched in 1996, including the Essential Drugs Programme, and legislation passed in 1997 will, when implemented, help bring more affordable drugs to all and hence more affordable health care.

By bringing 300 foreign doctors, mostly Cuban, to work in under-served areas Government has promoted access to health care. Community service for newly graduated doctors will begin during 1998.

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Maternal, women and child health

Following the introduction of free health care for young children and pregnant mothers, at least two thirds of women say they find access to health care much easier. Maternal deaths were made a notifiable condition in 1997 in an effort to reduce them. Since the Choice on Termination of Pregnancy Act took effect in February 1997, over 15 000 women have had legal terminations.

The Primary School Nutrition Programme is fed 4,9 million children in 1997, improving health and learning.

South Africa has ratified the Convention on the Elimination of Discrimination against Women and launched the National Programme of Action for Children jointly with the United Nations International Children’s Emergency Fund (UNICEF).

During 1997 Government exceeded its plans for building or upgrading 500 clinics. Since April 1994, Government and non-governmental sources were responsible for the building of 504 new clinics, bringing access to primary health care to an estimated five million more people.

R100 million has been budgeted for the coming year for hospital rehabilitation and reconstruction. Hospital management will be improved through a programme of decentralisation.

In 1995 the Department embarked on national immunisation campaigns. Coverage during 1997 was about 80 per cent for polio and measles. A new strategy to combat TB was introduced in 1996, and accelerated in 1997.

Increasing resources have been committed to combating HIV/Aids, and a campaign to change behaviour on a national scale has been launched under the leadership of an interministerial committee. A joint life skills programme with the Department of Education was launched in 1997 to train 10 000 secondary school teachers who will implement the programme in schools from this year.

In line with the new Constitution and new policies, legislation has been enacted to normalise citizenship and passport rights; to change registration of births and deaths; to regulate marriages, and to achieve publications control and control of illegal immigrants. The Film and Publication Act passed in 1996 increased the autonomy of the new Board and the Review Board.

A draft Refugee Bill will be tabled in Parliament this year. Legislation on the Marriage Act will be drafted after recommendations from the South African Law Commission, and a discussion document on customary union has already been released for public comment. A White Paper on Immigration Policy is expected in 1998, based on last year’s Green Paper.

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Civic affairs

Since the beginning of 1997, there have been 11 000 applications for identity documents (IDs) per day, on average. The Department has taken steps to deal with this unprecedented work load. The goal is for every South African of 16 years and above to have a legitimate, unforgeable ID. A new machine-readable passport was introduced during 1996 and preparations for a new automated fingerprint identification system and identity card are at an advanced stage.

South Africa co-operates closely with became a member of the United Nations High Commissioner for Refugees (UNHCR) and became a member of the International Organisation for Migration in 1997. Visa-issuing offices in all missions have been computerised and linked to promote efficiency and to prevent abuse.

Deportations from South Africa have been increasing steadily since 1990. Measures are being taken to address this serious strain on the country’s resources.

After bilateral discussions with SADC countries, a draft protocol has been adopted on facilitating the movement of people in the region. Over 200 000 people have applied for the exemption granted to Mozambican refugees and SADC citizens who were in South Africa for five years before 30 June 1991. Ultimately, the solution of problems relating to illegal entry and residence requires economic development of the entire region.

The Constitution requires an Independent Electoral Commission, and commissioners were appointed in 1997. In preparation for the 1999 8 election, efforts are being made to ensure that all eligible voters register. This includes the provision of more mobile units for rural areas and an ID campaign to be launched in 1998.

A gender desk has been established and substantial progress made with affirmative action. In order to enhance efficiency, fundamental restructuring as well as a plan to improve service delivery will take effect during the year. With the integration of the former TBVC structures complete, the department is concentrating on training and representivity. A transformation unit and gender desk will be launched this year, and an affirmative action policy approved.

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Most problems relating to and obstacles in the way of delivery have been isolated, and the necessary adjustments made. Several national institutions have been established to facilitate sustainable housing delivery and they were all operating by the end of 1996.

The National Housing Finance Corporation has granted facilities likely to lead to over 250 000 200 000 loans.

The Mortgage Indemnity Fund has covered more than 500 areas previously red-lined by banks and mobilised 66 000 loans in subsidy market;

By mid-1997 Servcon Housing Solutions was managing some 20 000 properties-in-possession and non-performing loans.

The National Urban Reconstruction and Housing Agency is guaranteeing loans for the building of more than 15 000 houses.

The Mortgage Indemnity Fund guaranteed over 130 000 loans. It has covered more than 540 areas previously red-lined by banks and mobilised 74 000 loans in the subsidy market.

The Rural Housing Loan Fund was set up with German grants to facilitate the construction of 100 000 homes in five years.

Never before have so many low-cost units been under construction. After the period devoted mainly to clearing the obstacles to housing delivery, there has been a substantial acceleration, especially since early 1997. By the end of 1997, 469 000 383 000 houses were completed or under construction under the subsidy scheme, and . more than 700 000 680 500 subsidies had been allocated by end of 1997.

Owing to government programmes launched since 1994, 1,2 million people now have a permanent roof over their heads; 500 000 people own the home they have lived in for many years, and the accommodation of 75 000 hostel residents has been upgraded

Capacity is being developed in provincial and local spheres of government, NGOs, communities and homeless people. This includes the People's Housing Partnership, which was established in 1997; the National Capacitation Programme, which helps ensure that provincial housing departments and municipalities have the capacity to carry out their housing functions, and measures to improve the efficiency of housing boards.

Joint-venture operations will be facilitated to provide higher density housing at scale, and a wide range of tenure choices are now being made available, including freehold, rental and social housing options.

The promotion of rental stock is part of the housing subsidy policy, and a review is being conducted to give effect to this.

The 1997 Housing Act abolishes all apartheid housing legislation. It replaces it with a single Act reflecting the new priorities of South Africa’s democracy. It creates a framework for housing action by the three spheres of government in line with current housing policy. It will be implemented from April this year.

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To restore the Rule of Law, Government needs to restructure the legal system and its institutions to promote accessibility and democracy. A strategic plan entitled ‘Justice Vision 2000’, is being used to draft a White Paper on the Administration of Justice. New institutions such as the Public Protector's Office, Judicial Service Commission, Constitutional Court, Human Rights Commission and Gender Commission have been set up to nurture a human rights culture and promote transformation in line with the Constitution.

The South African Law Commission, the Rules Board for Courts and the Legal Aid Board have been restructured. A Legal Aid system has been developed.

There are new laws are to ensuring uniform administration of justice, the courts and legal practice. The new Lay Assessor system encourages community participation. This In the coming year the Public Defender system will be extended; a National Director of Public Prosecutions will be appointed; sentencing guidelines for serious crimes will be developed, and citizens’ advice desks will be established in courts.

More people are laying charges and testifying in court, and the criminal process is being made more speedy. New legislation has closed legal loopholes and strengthened the hands of judicial officers to deal with organised crime, reduce delays and to promote international co-operation. The bail laws have been tightened and witness protection strengthened.

Changes in the administration of bail is are being changed introduced through pre-trial services which will both improve witness protection and reduce the number of awaiting-trial prisoners. The Department has strengthened its capacity to deal promptly with allegations of serious maladminstration and corruption, even within the Department.

South Africa’s new justice system has a strong focus on women and children. There are new guidelines for sexual offence victims and business plans for community safety centres. The South African Law Commission is investigating the law regarding maintenance, domestic violence, juvenile justice and child care.

A National Plan of Action to help realise human rights will be launched in December 1998, when the fiftieth anniversary of the UN’s adoption of the Universal Declaration of Human Rights is commemorated.

Courts are being made more user-friendly and their management and coordination of lower courts improved. Two reports of the Hoexter Commission will lead to legislation to rationalise the courts during 1998.

A Family Courts pilot project will soon establish six new family courts to deal with divorce, maintenance, children and family violence.

Court management is being improved to combat corruption in the justice system. New courts will be established and some existing ones amalgamated to improve efficiency.

With the 11 former separate departments now integrated, induction and training programmes are being implemented. Almost 40 per cent of magistrates, and half the prosecutors and the Department’s staff and management are now black. R20 million has been spent on upgrading the Attorney-General’s Office with modern technology and equipment.

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Collective Labour Relations: The new dispensation came into effect in 1996 when the Commission for Conciliation, Mediation and Arbitration (CCMA) and the new Labour Court began to function. The CCMA has achieved a 65 per cent success rate in dispute resolution. The new legislation may have contributed to a decline in labour conflict during 1997.

Labour Market Policy: Following the report of the Comprehensive Labour Market Commission, a policy document was approved by Cabinet in 1997. In order to address the critical need for the creation of more jobs, a Presidential Jobs Summit this year will provide an opportunity for Government, business and organised labour to seek consensus around a strategy for job-creation and to launch this strategy.

Unemployment Coverage: The five previous unemployment insurance schemes have been integrated. Proposals for restructuring the fund, based on recommendations made by a task team, have been submitted to the Minister.

Occupational Health and Safety: Recommendations of a Committee of Enquiry appointed in 1996 are being considered after consultation on its report. The Compensation for Occupational Injuries and Diseases Act, 1993, has been amended to bring it in line with the Unemployment Insurance Act, 1992.

Employment Standards: The Basic Conditions of Employment Act, which provides for minimum standards to protect vulnerable workers, was passed by Parliament in 1997. Before it is implemented, its impact on small business will be investigated.

Employment Equity: The Employment Equity Bill, aimed at correcting imbalances of the past in employment, training, promotion and remuneration, was approved by Cabinet in 1997. It is expected that the Bill will soon be finalised after consultation with social partners and approval by Cabinet and be implemented during 1998.

Skills Development Strategy / National Human Resources Development: The Department has worked with the Department of Education on establishing a unified system of certification and qualifications - the SA Qualifications Authority Act was passed in 1996. A Skills Development Bill drawn up in the light of reaction to the 1997 Green Paper on a Skills Development Strategy will soon be finalised after consultation is being discussed with social partners and approval by Cabinet. The skills development policy framework should be finalised during 1988 and implementation begin. The Bill provides for a national compulsory levy or grant system to promote national skills development. Standards and qualification regulations should also be finalised during 1998.

A new Labour Market Chief Directorate oversees research and collation of statistics. Research projects are helping to enhance labour market efficiency and monitor the impact of labour market policies. A major document on Labour Market Policy has been completed as part of the Department’s work to coordinate formulation of an employment strategy for discussion with social partners leading up to the 1998 Jobs Summit.

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Departmental change

The pre-1994 system has been integrated to create one national labour department and to rationalise statutory bodies linked to the Ministry. New representative management appointments have been made. Longer-term restructuring is guided by a strategy formulated in 1996.

A Green Paper on Mining and Minerals Policy was launched in February 1998 and a White Paper should be ready is expected later in the year. The White Paper will guide the use of the country’s mineral wealth for the benefit of the whole population.

A Draft White Paper on Energy will be released during 1998. It will emphasise equity, efficiency, and environmental sustainability of energy services. New legislation to regulate mining and energy, including electricity, will be tabled this year.

During 1997 the Mining Qualifications Authority and the Mine Health and Safety Council were established. The Mine Health and Safety Act, 1996, was fully partly implemented by during 1997 and fully so in January 1998.

Discussions with employers and unions are taking place to find ways of minimising retrenchments in gold mining are being discussed with employers and unions. These talks include facilitating beneficiation and small-scale mining. Small-scale mining is being promoted by investment promotion strategies that eliminate barriers. Government and private sector also give support to and through support by both private sector and government for new entrepreneurs: companies such as Ikwezi Colliery, OTR mining and Eyethu are recent successful examples.

Development of the Mossgas satellite fields and phasing-down of financial aid to Sasol continue. Work is being done on the restructuring of the liquid fuels industry.

In order to reduce the impact of energy on the environment, unleaded petrol has been introduced; motor pollution is being monitored; radioactive waste management has been improved; environmentally friendly energy sources are being promoted, and clean coal technology is being evaluated.

Each year since 1994, electricity has reached hundreds of thousands of homes. In 1997, 428 000 homes were electrified by Eskom or local authorities. The most rural provinces have benefited most.

Government’s participation in SADC and co-operation with countries in the region have developed. The SADC Energy and Mining Protocols promotes enhanced co-operation. The Southern African Power Pool is paving the way to a regional electricity grid and a coordination centre will be established in Harare in 1998. The Cahora Bassa hydroelectric project has been restored and electricity will flow to South Africa as soon as price negotiations have been concluded.

The Department promotes technical training through its own activities (50 trained mine inspectors will be placed by year-end) and through associated institutions such as Mintek, the Geoscience Council and the Atomic Energy Corporation. In conjunction Together with employers and unions, it actively promotes Adult Basic Education and Training in the mining industry.

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The Ministry and Office for Public Enterprises manage six state-owned assets with the goal of furthering the public interest and maximising their contribution to national economic growth and development.

All six have undergone transformation through affirmative action, democratised decision-making and orientation towards stakeholders. Procurement and outsourcing are being managed to assist economic empowerment - significant auditing and legal services are outsourced to black companies and procurement is being opened to small black business suppliers

An ongoing audit of assets owned by state enterprises points to idle or under-utilised assets that might be effectively used for small business development, housing and job-creation.

In 1998 focus will be on implementing the framework for corporate governance of state-owned enterprises. Government will examine the need for establishing new strategic state-owned enterprises, for example in the liquid fuels industry or in housing by consolidating the housing portfolios of state-owned enterprises and combining them with existing parastatals.

Guidelines for the restructuring of state assets adopted by Cabinet in 1995 have been shaping the process of restructuring. HBSC Investment Bank is the government advisor for the process.

Structures established under the National Framework Agreement negotiated between Government and labour have kept the restructuring programme within the broad time frames set for it.

The sale of six regional radio stations in 1996 started the process. The next year Telkom acquired a strategic equity partner and Sun Air was sold. During 1998 SAA and the Airports Company will acquire strategic equity partners and Autonet will be privatised. Aventura is to be completely privatised and there are five bids to purchase it. A transaction advisor will recommend the best way forward in the restructuring of SAFCOL. The management of Alexkor’s various operations will first be transferred by tender to private companies who will later have the option of acquiring significant equity.

In terms of the National Framework Agreement, a social plan is taking shape for employees adversely affected by restructuring. Priority is being given to finalising the plan through Nedlac and in conjunction with the Department of Labour.

Having started from a weak position in terms of skills, the Ministry and Department expanded and restructured to become more effective.

The enhancement of the Ministry’s capacity to manage state-owned assets and the restructuring process itself is being promoted by Project 2000, in collaboration with Warwick University. This project is designed to expose middle and senior managers to international state-of-the-art management techniques, practices and technology.

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A transformation unit and a human resource development committee have successfully promoted gender and race representation in management.

The Public Service was transformed which by integrating the old various apartheid administrations and this has required rationalisation of structures, reprioritisation of activities in accordance with the goals of reconstruction and development, and right-sizing of personnel numbers.

The Public Service has shrunk by more than 100 000 posts personnel over the past two years. This has been partly due to a result of the short-term measures of abolishing funded vacancies (25 000 posts) and voluntary severance packages (48 000 posts by September 1997). Funds saved by abolishing through abolition of funded vacancies in 1997/8 were used for to finance improvements in conditions of service.

However, rationalisation and reprioritisation have not been fully matched by corresponding reduction in personnel. and the department is working on proposals to reduce personnel to what is required. This includes measures to enable redundant employees join in developmental efforts outside the civil service. The recommendations should be finalised for implementation during 1998. This will be addressed during 1998 in the context of comprehensive discussions with unions and the need to find ways of facilitating the transition of individuals into other areas of the economy.

During the year more effective steps will be taken to deal with the problem of ‘ghost workers’, particularly in provincial governments.

The Batho Pele/People First Initiative is aimed at a service-orientated Public Service. A Code of Conduct was launched in June 1997 to help eliminate malpractice, corruption and poor service. Information technology is being used to improve services delivered.

To coordinate public sector reform, interprovincial and national transformation committees have been established.

Legislative Amendments to the Public Service Act based on the 1996 Green Paper will, come into force during 1998,. They redefine the roles of the Public Service Commission and the Minister; devolve powers to Ministers and MECs, and enable the issuing of revised Pre-writing of Public Service regulations.

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The new 14-member Public Service Commission which was established by established by the Constitution, replacing the former national and provincial commissions, should be appointed during 1998.

The new salary grading system developed in 1996 will be implemented over three years. It simplifies personnel administration; improves career-pathing, and reduces the wage gap in the Public Service. A personnel performance management system, a job evaluation system and a code of remuneration will be phased in during 1998 and employee benefits will be reviewed. A draft White Papers on a New Employment Policy for the Public Service and Affirmative Action will be implemented.

Managing and developing human resources will be a priority during 1998, based on the White Paper on Human Resource Management in the Public Service launched at the beginning of the year. The aim is a civil service that strives to meet the objectives of public service rather than one that is merely rule-bound.

A coherent training policy is outlined in the 1996 White Paper on Public Service Training and Education. The Public Service and Training authority, once established, will ensure uniform provision of training.

A EU-South African Public Service Management Development Programme was launched in 1997, in order to train 65 000 people. To build capacity at lower levels, of the Public Service the bursary scheme has been extended to study for pre-tertiary qualifications Standards Eight to Ten and for acquiring basic numeracy and literacy. The South African Management Development Institute, with the help of foreign training institutes, has been repositioned to address the needs of transformation.

Public Works has transformed itself from is extending its traditional functions as the ‘state’s landlord’ to include the promotion of development as part of its contribution to Government’s socio-economic objectives.

Its , while concentrating on core functions have been redefined to promote to improve efficient delivery of services to Government and society as a whole.

The National Public Works Programme Unit now incorporated as a core function, has a section that develops policy, helps transform the construction sector and works with the Community-based Public Works Programme.

The strategic role of the Department into the next century is outlined in a 1997 White Paper. Project management has become a core function and most of the traditional construction work is outsourced to the private sector. The Renewal Project has identified further possibilities for out-sourcing. In 1997 coordination of government infrastructure delivery, previously an area of critical weakness, was made a Public Works responsibility.

The strategic role of the Department into the next century is outlined in a 1997 White Paper. Another 1997 White A Green Paper develops a strategy to promote stability in the construction industry, foster growth and international competitiveness, while generating new capacity and addressing imbalances. During 1998 a Green Paper will formulate a sound framework for regulating the property industry, taking into account historic imbalances and the size of the state property portfolio.

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Procurement reform

Affirmative policies are opening access for small and emerging business to public sector procurement and to architectural, engineering and survey work. Since August 1996, 47,3 per cent of tenders went to companies with Previously Disadvantaged Individual (PDI) equity (compared with fewer than 5 per cent before 1994).

A new model of public-private partnership in the provision of infrastructure (Asset Procurement and Operating Partnerships) has been successfully developed and is being introduced (Asset Procurement and Operating Partnerships).

Public works programmes contribute to poverty alleviation, job-creation and infrastructure development. The Community-based Public Works Programme, targeted mainly at rural communities, was allocated an additional R85 million for poverty relief during 1997: This was used mainly in the provinces most affected by poverty, namely KwaZulu-Natal, Eastern Cape and the Northern Province.

The programme has so far, more than funded a thousand projects have been funded to providing sanitation, road building, water provision, environmental protection, clinics, crèches, schools and community halls.

The programme, which has created over 140 000 jobs, 19 000 of them sustainable, has been redefined to meet new challenges.

Provision for the disabled: Consistent with the national strategy for the disabled, the Department is improving accessibility to public buildings.

National Asset Register: A national register of state assets will improve the Department’s work and unlock considerable financial resources. The register has grown from 130 000 properties in 1996 to 214 834 in January 1998. The register will be completed by the end of 1998. Already savings of R24 million were made in 1996/7 through the disposal of uneconomical leases.

NASREC development: - Invitations will be issued during 1998 for proposals for developing the NASREC site as a sport and recreational centre. Construction will begin in 1999.

The transformation of policing has focused on two things required for effective policing, namely establishing the legitimacy of the police, and developing policing skills and structures appropriate to democracy. As legitimacy has taken root and action continues to deal with corruption within the Service, the focus has shifted to improving the investigative capacity of the SAPS. South Africa’s first Detective Academy was established in 1997. Capacity will be the priority for 1998.

To help eliminate abuse of police power, the Independent Complaints Directorate was established in 1997. In its first four months it handled nearly 500 complaints, including 256 relating to deaths in custody or as a result of police action. This directorate will be strengthened during 1998.

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Effects of strategies to deal with crime

The implementation of police plans and the strategies linked to them have helped reduce general levels of crime through more effective policing at local level, community co-operation and better use of intelligence.

Early successes included a massive reduction in political violence in KwaZulu-Natal. Coordination with the SANDF in high-density operations has improved security in trouble spots and farming areas.

Statistics released at the end of 1997 demonstrate the successes and the problem areas. Although the figures do show a general decrease in levels of reported crime, the level is still unacceptably high. An exception to the decreases in the rate of serious crimes is an increase in reports of rape, and there are also localities which did not share in the national trends.

Legal changes have narrowed the space for criminals and strengthened the hands of judicial officers and police. This includes laws administered by the Department of Justice (affecting extradition, international police co-operation, proceeds of crime, entrapment, undercover operations and the use of force during arrest), and the Safety Matters Rationalisation Bill, 1996, (affecting internal security, explosives, intimidation and the regulation of gatherings).

Reducing the number of international commercial airports and border entry points will reduce opportunities for crime.

A crime prevention coordination unit in the Secretariat for Safety and Security, and forums within the SAPS are coordinating interdepartmental processes. The NCPS is promoting close co-operation with other Ministries. Crime prevention summits have been held in all nine provinces and provincial multi-agency mechanisms will facilitate implementation of plans.

Priorities for 1998 are those set in 1997: crimes against women and children; organised crime; the possession of illegal firearms and corruption in the justice system. More emphasis will be placed on policing in the metropolitan areas, especially Johannesburg. A White Paper for Safety and Security will further efforts to achieve police effectiveness.

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Although persisting prejudice hinders deracialisation of sport, progress is being made in close co-operation with the Health and Education departments. A White Paper on the Transformation of Sport approved by Cabinet in 1997 will provide the framework for legislation to promote change and make sport equally available to all.

The Department provides financial support for sport development at all levels and has a programme to encourage women’s involvement in sport

To promote the provision of basic facilities for previously disadvantaged communities, the Department organised a Facilities Convention during 1996. Sympathetic organisations in the country and experts from abroad developed a plan to address imbalances of the past.

A R50 million basic facility project of R48 million has so far spent R40 14,7 million on building 126 basic outdoor facilities. An indoor multi-purpose project launched in Sebokeng last year is the first of nine such facilities that will be built - one in each province. These projects should be completed by the end of the 1998/9 financial year. , and the emphasis will then shift to upgrading existing facilities.

Invitations will soon be extended for proposals for developing the Nasrec site as a sport and recreation complex, for construction to begin in 1999.

A new Sport Information and Science Agency swill enhance both elite and grass-roots participation in sport. A Sport Information Centre and a Web-site were established in 1997 to provide information sportspeople which can help improve performance.

A new Sport Information and Science Agency will enhance both elite and grassroots participation. A Sport Information Centre and a Website were established in 1997 to provide information that can help improve performance.

The SANGALA programme was launched in 1996 to involve more as many people as possible in physical activity programmes. S By the end of 1997, some 2 400 community leaders and officials have completed initial training and 250 000 people have participated in the programme - the target for 1998 is for 500 000 people. About two million people took part in Wellness Day and four million are expected to do so this year.

The Department is helping the fight against crime through the its Sport Against Crime project. To promote health it hosted a conference with the Department of Health on HIV/Aids in sport.

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International agreements

Several international agreements have been reached, mainly to boost capacity building in black communities, with a focus on . Countries involved include Australia, Canada, Germany, the Netherlands, New Zealand, France, Bulgaria, Belgium, Brazil and India. The focus is on the development of administrators, grounds managers, coaches and volunteers. The Department has subsidised costs of participation of South African teams in international events.

A more gender and race representative management has been appointed and the programme to achieve a more representative department will continue during 1998.

PA policy package has been developed to promote trade relations for a globalised economy: an industrial strategy for competitiveness and productivity, and equitable trade and commercial practices that encourage trade and investment and foster opportunities for participation in the economy.

Industrial strategy is based on extensive research and analysis, including the findings of working groups comprising organised business and labour, to identify conditions to improve competitiveness and the creation of employment in within particular sectors. Supply-side measures are promoting productivity and competitiveness.

One of the biggest programmes is for small, medium and micro enterprises. It creates a supportive environment for this sector, and several institutions have been created for this purpose.

The following set of support measures is facilitating investment:

SDIs play a crucial role. They are located in areas of unused potential and are generally well placed for export-orientated activity. The Maputo Development Corridor was launched in 1996; the Fish River SDI in the Eastern Cape in 1997, and the West Coast SDI in February 1998. International investors’ conferences linked to the launch of the SDIs have attracted strong interest.

The Regional Industrial Development Programme provides incentives for investment that promotes regional development.[#tax holiday?]

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The Cabinet Investment Cluster is a Ministerial level committee designed that to coordinates growth and development strategy. It is developing an Investment Projects Register which will come on- line during 1998.

Investment South Africa was launched in 1997 as a one-stop investment centre to facilitate foreign investors’ investment decisions.

The National Industrial Participation Programme obliges successful tenders with an imported content of over US$10 million to participate in the South African economy.

The Department is engaged in two major sets of negotiations which will lead to free trade areas, with SADC and the EU, within five and 12 years respectively. The South African Customs Union is also being renegotiated. South Africa participates increasingly in multilateral forums such as the World Trade Organisation (the WTO), UNCTAD and other UN agencies, helping to keep development issues high on the international agenda.

The Department’s Global Economic Strategy Project has identified untapped market potential in Africa, Latin America and Asia, and indicated that Government should focus on strengthening links with these areas. Since 1994, there has been significant growth in trade with African countries.

Exports are being promoted by market research, participation in numerous trade fairs and inward and outward trade missions.

The new policy, outlined set out in the 1996 Transport White Paper, shifts Government from operations to policy, planning and regulation. The policy will base the delivery of infrastructure and services on public-private partnerships, promote contracting-out of rail services, and draw the taxi industry into the formal transport system. It will also also address the carnage on South African roads.

In this context, the Department has established three four 'arm’s-length' agencies to manage roads, maritime safety Aviation Safety; and cross-border transport and a fourth (aviation safety) will soon follow. These agencies will be funded through partnerships, user charges or levies. The formation of The formation of the agencies and a a departmental focus on core functions will reduce the Department to 220 by 1999 from the present level of over 1 000.

The Moving South Africa Project, to develop which maps out a 20-year strategic plan for transport in South Africa, should be completed during 1998.

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Public transport

Developing a customer-orientated public transport system is a priority.

Interim contracts with all subsidised operators have replaced the bus subsidy system, to promote competitiveness and sensitivity to community needs.

Commuter rail services are being shifted to a concession-type contract which will create introduce incentives for better and more efficient service.

The National Taxi Task Team has developed a framework for addressing taxi-related violence. It is based on regulation and control; formalisation and training, and economic assistance. After Extensive consultation laid the ground was laid for implementation, including grassroots consensus. By the end of 1997, 95 per cent of taxi associations were registered. Co-operation between the departments of Transport, Justice and Safety and Security is a key to success.

Road construction is a major investment in infrastructure. Some projects have been completed and others are in various stages of tender or construction. Private sector participation is critical, and contracts are structured to promote empowerment, growth and development.

The N1 toll road opened last year. Bidding on the N3 toll road has closed and a tender will be awarded this year. A tender should also be awarded this by the end of the year for the N4 Platinum toll road, from Pretoria to Botswana, completing a link from Maputo on the East Coast to Walvis Bay on the West.

The Maputo Development Corridor reached financial closure last year and toll road construction work will start during 1998. Construction of a key road in the Lubombo SDI linking northern KwaZulu-Natal with southern Mozambique started in 1997.

As part of a comprehensive plan to reduce road deaths by 10 per cent by the year 2000, a computerised National Traffic Information System is being established. The new credit card-type driver’s licence, now being introduced, will help eradicate fraudulent licences and strengthen enforcement. The Arrive Alive road safety campaign over the 1997 December holidays helped reduce achieved some reduction in deaths and provided valuable lessons for the development of a sustainable programme to reduce road deaths.

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The Rural Water Supply and Sanitation Programme was started as a Presidential Lead Project in 1994 to provide basic services to all. Over 1 300 projects have been initiated and funding was allocated to 700 projects to provide ready access to clean water to 6,8 6,4 million people (about half the national backlog) and sanitation to 100 000. By February 1998the end of 1997, community water supply had reached 1,7 1,3 million people.

The 1997 White Paper on a National Water Policy opened a new era in managing South Africa’s country’s water resources on a fair, efficient and sustainable basis. It emphasises water conservation and environmental protection.

Water legislation is being redrafted entirely. The Water Services Act, 1997, defined new responsibilities for all spheres of government, and a draft National Water Bill is now before Parliament has been released for comment and will be tabled in Parliament in 1998.

The successful National Water Conservation campaign has been very successful. It includes a School Education Programme, a new water pricing policy and the Working for Water Campaign. The last-mentioned is a Public Works programme, greatly expanded in 1997 by R150 million as part of Government’s poverty-relief programme, which made it possible to employ on a short-term basis and train which has employed and trained almost 9 000 40 000 previously unemployed people to eradicate in the eradication of alien vegetation from water catchments, thereby increasing water supplies. The scheme has been greatly expanded by the allocation in 1997 of R150 million as part of government’s poverty relief programme. This will allow the creation of another 40 000 short term jobs.

Construction of dams is increasing water supplies and improving flood protection:

Phase 1A of the Lesotho Highlands Water Scheme was opened in January 1998, to secure water supply for six central provinces of South Africa for the next 10 years. Contracts for major components of Phase 1B were awarded should be completed shortly early in 1998.

The completion of the Qedusizi flood protection dam outside Ladysmith, completed in 1997, is protecting has brought protection to a town frequently devastated by floods.

The Injaka Dam and water transfer on the Sabie River will protect the Bushbuckridge area’s from having its water supply during cut off by droughts.

Driekoppies Dam on the Komati River allows an expansion of farming, created thousands of new jobs, and helps benefits Mozambique by improved river regulation.

Construction of the infrastructure needed to build Maguga Dam jointly with Swaziland was completed in 1997.

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Construction has started on the Mutoti Dam on the Luvuvhu River in the Northern Province, to ensure basic water supply to about a million people.

The Forestry White Paper and the establishment of the National Forestry Advisory Council in 1996 were milestones. The National Forestry Action Plan translates the White Paper policies into practical action and a Forestry Bill to go to Parliament this year will promote sustainable and equitable management of forestry.

The White Paper emphasises community forestry. Three and over 2,4 million trees have been planted under the Community Forestry Programme and by mid-1997. one million trees will be planted each year for the next three years.

An audit in 1996 helped incorporate the commercial forests of former homelands into the Department. The Department’s commercial component is being made more viable, and options for restructuring are being investigated. A decision was taken in 1997 to encourage private sector development of the Eastern Cape. A decision on the restructuring is expected is expected to be complete by the end of the year.

The 1997 White Paper for Social Welfare repositions welfare towards a developmental approach, shifting from reliance on institutional care towards that makes more use of community networks and care, while addressing past inequalities. Backlogs of welfare needs and the concentration of resources on minority communities make transformation a major and sensitive task which take time to achieve, although progress is being made.

The White Paper on Population Policy, tabled in parliament during 1997,. will bring policy in line with international trends by integrating population concerns into the country’s development policies. Far-reaching agreements have been made with Southern African Ministers on regional population and development programmes.

To realise this approach, a programme which will continue during 1998 has been launched to re-orientate social workers and equip them with appropriate skills. There is a wide range of initiatives to promote social and community integration of those in need of care and support.

The welfare partnership of Government and NGOs has been consolidated by the Not-for-Profit Act, 1997, which will create an enabling environment for such organisations, and a more flexible financial framework - both changes come into effect this year

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Welfare works closely with other departments. It leads the NCPS Victim Empowerment Programme which emphasises empowerment of women affected by rape and battery, and abused children. Other areas of co-operation include the National Plan of Action for Children; fighting the spread of HIV/Aids and ensuring care for its victims, and combating drug abuse and drug trafficking.

The White Paper on Population Policy, to be tabled in Parliament during 1998, will bring policy in line with international trends by integrating population concerns into the country’s development policies.

The delivery of social grants and pensions is a high priority as an anti-poverty programme reaching nearly three million households a month. Parity in payments to beneficiaries has existed since April 1996.

With the previously separate social security systems amalgamated, there has been progress in eliminating inefficiency, duplication and removing from the system those who no longer qualify. Savings since early 1997 amount to R160 million a month. A new early warning system will help avoid management problems such as those experienced during 1997.

The new child support grant replaces the state maintenance grant from April 1998. It will reach about 378 000 children in the first year and three million by the end of five years.

The Flagship Programme for Unemployed Women with Children under Five, launched in 1996, has taken root in all provinces but one. To date, 1 000 women and 1 500 children are benefiting from this programme which aims to boost employment and skills as well as early childhood development.

The Department has also allocated R50 million of special poverty-relief funding received in the 1997/8 financial year to existing projects in all provinces.

The Lund Commission on Child and Family Support appointed in 1996 developed options for extending provision to those previously excluded. As a result a new child support grant will replace the state maintenance grant from April 1998, and will reach 3 million children over the next five years

A new child and youth care system has been designed by Welfare works with other Ministries in the Interministerial Committee on Young People at Risk. , which has piloted alternative ways of dealing with young people in conflict with the law. Since late 1997 the Department has been initiating the transformation of the system, developing minimum standards and establishing models for replication throughout the country.

The Three Secure Care Programme started in 1995. At least 3 000 child and youth care workers and 500 probation officers have received training, and by mid-1998 seven facilities will be opened.facilities were operating by the end of 1997 and most new facilities will open during 1998. Project Go aims to ensure that the system is ready for the release of 1 400 children from prisons into alternative secure care facilities this year.Every effort will be made to achieve the target of May for eradicating the need for young people awaiting trial to be held in police cells.

Welfare is the lead department in the Victim Empowerment Programme of the NCPS. The programme emphasises empowerment of women affected by rape and battering and abused children. The Central Statistical Services will conduct a survey on these offences during 1998, including the extent of unreported incidents.

Other areas of co-operation are: the National Plan of Action for Children, the implementation of Beijing Platform of Action for Women and the report of the Conference for the Elimination of Discrimination Against Women.

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Last modified: 23 April 2008 07:16:13.