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Master of Ceremonies,
Your Worship the Mayor,
Deputy Mayor,
Foreign and local dignitaries,
Compatriots and friends

It is a pleasant and moving experience to witness the robing of His Worship Mr Rampine, the deputy Mayor Mrs Nel and other Councillors.

It represents one of the many positive developments that have taken place in South Africa since the movement to full democracy began in April 1994. We have just seen men and women who have been elected by popular vote to represent the people of Lichtenburg. They form a council that for the first-time in the history of Lichtenburg, enjoys legitimacy in the eyes of the majority and is the custodian of their hopes and aspirations.

This on its own provides a positive image of a community that has set its eyes firmly on the future.

It sends a clear message to the outside World that they have embraced the principles of democracy, nation-building, development and reconciliation principles that form the centrepiece of our reconstruction and development programme. That in itself creates an historic opportunity for the council to mobilise all the material resources and creative talents that are doubtless in abundance in this town to face the daily challenges of its difficult mandate.

Lichtenburg is not alone in the challenges facing its residents. Like many other towns and cities it reflects the legacy of apartheid spatial planning. On the one hand are well-serviced suburban neighbourhoods, and on the other are lower-income underserviced townships with few economic opportunities. Following the international trend, more people than ever before migrate to the cities to seek new opportunities. More often the towns are not able to handle the volume of demand for housing and other infrastructure, the result is informal settlements on the outskirts of the town. This puts a further strain on the resources of the urban areas and on the environment.

The strategic challenge that is facing local government is to mobilise the resources of communities, government and the private sector to make the urban areas centres of opportunity for all South Africans - both for original residents and new-comers. The success of this will depend on the initiatives taken by all role-players, including residents, to build their local authorities and promote economic development.

The national and provincial governments have already taken steps to address the immediate and future needs of the urban population. The aim is to reduce the social inequities and economic inefficiencies which impacts negatively on the proper functioning of our cities and towns. The Development Facilitation Act introduces new measures to facilitate and expedite land development projects and overlook in existing regulations to accelerate delivery. In the near future, we will be launching the Provincial Development Facilitation tribunal that will facilitate better use of under-utilised land and introduce an environment sensitive to development.

The housing programme in Boikhutsong will provide an amount of relief on the urgent demand for shelter. Obviously the backlog will still remain.

It is needed the intention of the Provincial government to bring an end problems of homelessness and poverty. To overcome this, we require the support of local authorities at a times.

What should be realised is that urban areas have great potential for economic growth. The challenge is to focus more attention on enhancing the capacity of the urban areas to generate greater economic activity, and to achieve growth and competitiveness. This will in turn create employment opportunities and address the plight of the poor.

The Masakhane Campaign is the initiative of government to create an enabling environment for urban renewal and economic progress. The creation of this environment requires a partnership approach between local government, the private sector and communities.

In the community it means a vibrant civil society that participates actively in issues of socio-economic development and to ensure that users pay for the services they consume.

In the public sector it means that we should strengthen the capacity of local government for effective and responsible governance. It also means that our priorities must focus on development that will be well-monitored and goal-orientated. The aim of the Extension of Municipal Services Programme is to back up emerging local authorities by restoring, improving and extending municipal service provision, in accordance with the Masakhane Campaign.

In the private sector it means that organised business should take initiatives aimed at levelling the economic playing field so that the small enterprise sector can begin to contribute significantly to economic growth and job creation. Due to the legacy of big business-domination of the economy, small, medium and micro enterprises are faced with serious constraints that hamper growth into vibrant businesses. While they provide livelihood to the majority of people, the true potential of SMME's has not yet been realised.

The government's view is that the small sector is not a junior partner that is to be treated in accordance with different rules. We view them as equal partners in the broader economic sphere that includes big business, parastatals, government and international investors.

We are therefore committed to the promotion of SMME's through government assistance and support. The priorities of government reflects this commitment. Since 1994, 58% of government contracts totalling about R805 million have been awarded to emerging entrepreneurs. This year, we have set aside R40 million to be utilised as direct loan-finance for SMME's.

We will continue this year to bring established business and the small sector together to focus their attention on creating a mutually beneficial linkages. We will also encourage the formation of strong partnership with local government to approach socio-economic development issues as a collective. In the end these partnerships can only benefit all residents and provide a conducive environment for economic expansion.

Mr MC, we are confident that the Council of Lichtenburg will continue to pursue the vision of a town that is a centre of social and economic opportunity for all, that is marked by good infrastructure and services for all, that is managed by accountable, democratic and efficient officials, and above all, that is a leader in a competitive growing economy.

We are also confident that this vision, which dovetails with the Masakhane Campaign, is shared by all role-players, including the residents themselves. They are the town's productive resource, a major asset that has great potential for progress.

May I take this opportunity to say the provincial government will continue to strengthen linkages with the Lichtenburg council and other local government structures. In pursuit of the policy of co-operative governance, the provincial government will continue to assist, co-ordinate and promote the efficiency of development planning at the local level. We will also facilitate the training of councillors and other officials with a view to building the capacity of local government for effective delivery the task is immense and we all have to rise to the occasion.

I would like to congratulate all the councillors. My special words of commendations to Pinky and Hans, the beloved spouses of the Mayor and the deputy mayor. I thank them for the support they give to their spouses in high office. They are thus also playing a critical role in the development of Lichtenburg. Please keep it up.

I thank you.

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