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INTRODUCTION

HONOURABLE MEMBERS OF THE DIPLOMATIC CORPS, LADIES AND GENTLEMEN OF THE MEDIA.

1998 is going to be a very hectic and exciting year - not least for Defence.

It therefore gives me great pleasure to brief you on our programme for the 1998 legislative session.

The policies we have so painstakingly implemented since our accession to office, and the progress we so carefully consolidated, now provide the springboard for dynamic change.

This is the year in which the pace of transformation - our paramount priority and overarching objective - is going to pick up dramatically.

The final stage of the Defence Review will be completed, the Defence Act rewritten and, as the President indicated - in his opening address to Parliament - _we can now start the long awaited process of re-equipping our National Defence Force.

l will focus on our immediate priorities for the year and, given the constraints of time, will be necessarily selective and brief, so as to be able to leave some time for questions at the end of my briefing.

Suffice to say, I will be referring to areas of progress as well as those of concern, since I am committed to putting things right in the interest of our new SANDF and of our country.

I. TRANSFORMATION

Transformation remains the cornerstone of Defence policy.

Whether Defence is transformed and representative is the ultimate standard by which our country and people will judge us.

Structural Transformation of Defence will therefore be broadened and deepened.

To this end Defence management and workgroups are intensively engaged in restructuring.

The fundamental reshaping of Defence involves:
- Downsizing the headquarters;
- Creating a new three-tier structure; and
- Merging groups and units.

This will necessarily involve a rationalisation and retrenchment programme which will be carried out with due consideration and sensitivity.

Cabinet has approved a set of criteria for forced retrenchments, and the defence force this week released details of the rationalisation programme.

The SANDF - in terms of the Defence Review approved last year - will shed about 24 000 members to bring its current level down from the present 94 000 to about 70 000 members.

Rationalisation is expected to begin by the end of the year, and the process will be spread over a number of years.

It will involve:
- natural attrition;
- transfers to other departments;
- non-renewal of short-term contracts;
-voluntary severance packages; and
- forced retrenchment.

Fair labour practices will be followed.

Those affected will be given the reasons for their proposed retrenchment, and informed at least three months before the last day of their service.

Staff whose posts are abolished will not necessarily be laid off, and not all those in posts retained will escape retrenchment.

Those retrenched will receive newly negotiated packages, the details of which are still to be announced.

Departmental procedures to appeal will involve the redrafting of the Special Tribunal Act, and its promulgation in this Parliamentary session, so that a special tribunal can adjudicate any disputes and claims after 31st December.

In addition, an employee will be free to approach the High Court at any stage during the rationalisation process.

The rationalisation programme includes the setting up of regional transition support centres (TSCs) to offer retrenched members training and to help them find employment in civil society.

The need to downsize was clearly emphasised by President Mandela in his opening address to Parliament when he said, and I quote:

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

Major cost-savings will accrue, allowing us to strike a better balance between operational and personnel costs on the one hand and capital costs - or the funds available for equipment replacement- on the other.

At present, the capital cost component of the defence budget has shrunk to an alarming 13% of the Defence budget.

Through restructuring operational and personnel costs will decrease, and after three years the capital component will increase to 309/O.

This is, of course, dependent 011 the retrenchment programme refereed to. With the Defence budget now at approximately 1.5% of GDP - down from 4.5% in 1989 - these savings will, therefore, have a significant impact.

II. ACQUISITION

Whilst the Department of Defence implements its cost-saving restructuring and downsizing programme - the Ministry of Defence has been searching for financially efficient means to replace our ageing main equipment.

The President has emphasised this Government's commitment to tackling the problem of re-equipment with the best that our admittedly limited funds can buy.

This was underlined in his opening address to Parliament.

With regard to Defence, the President had this to say, and I quote:

"We are proud that, after a year or so of healthy and informative debate, we can now start the protracted process of r e-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."

Cabinet and Parliament's approval of the Review last year signalled a significant milestone in this respect for two reasons:

Firstly, it resolved the "guns or butter- houses or corvettes" debate.

We were able to arrive at this conclusion: not Guns versus Butter, but rather Defence and Development - Thus development and security are two sides of the same coin.

Secondly, we could then focus on the Government-to-Government packages which are currently being considered, and which form an important part of our re-equipment programme.

In October last year I requested proposals from various countries for the following equipment:
- corvettes;
- submarines;
- maritime helicopters;
- light fighter aircraft;
- light utility helicopters;
- and main battle tanks.

These packages must fulfil President Mandela's expectations.

We must be able to show their benefit to our economy.

So, apart from the necessary Defence requirements that must be met, we are looking for:
- solid long term investment;
- job creation;
- joint business ventures;
- technology transfer;
- industrial participation;
- access to international markets;
- and increased trade.

A short list of preferred options, and the various contenders was drawn up in December 1997.

We have now decided to issue a further instruction to Armscor to invite a second round of proposals on a Best and Final Offer basis.

These formal requests for proposals will be, or have been issued to the short listed tenderers only and contain explicit statements on our requirements in terms of the:
- technical aspects;
- Defence industrial participation;
- non-Defence industrial participation;
- and financing.

Bidders will have three months in which to respond.

We need progress now and expect final decisions, at Cabinet level - if the evaluation is on schedule - by mid year.

III. HUMAN RESOURCE MANAGEMENT

Turning now from the subject of equipment to that of our people and our human resource management.

In terms of transforming representivity, progress is being made in the officer corps of the SANDF.

22.5% of all officers are now black, of whom 11 are generals and 24 are brigadiers.

Of note is that General Masuku has become the first black officer to command Defence Medical Services - one of the four Services of the defence force.

Generals Ramano and Motau are Deputy Chiefs - of the Army and of Defence Intelligence respectively - with the present incumbents due to retire in July.

And Lt. General Nyanda is the Deputy Chief of the defence force.

Our objective is to attain, within two to four years, broad representivity in the SANDF, at all rank levels, to reflect the demographics of our country.

I have repeatedly emphasised the importance of this objective.

I am concerned about the slow pace of change and am seriously examining the problem at the highest levels.

l particularly want to take this opportunity to spell out my message very clearly.

There must be progress.

Unless the SANDF becomes fully representative our people will not accept it.

Members of the defence force are, therefore, to be judged on their attitude to transformation.

I also serve notice that names within the SANDF will be changed to reflect a democratic South Africa.

We started by changing the politically loaded names of naval ships.

All credit to the navy for the name changes that took place to mark their 75th anniversary last year.

We look to the other services to follow their example.

It is a prerequisite in enhancing the legitimacy of the armed forces in the eyes of all our citizens.

Our Equal Opportunity and Affirmative Action Programme must do just that, and, to this end, we intend accelerating the operation of this programme.

Further steps involving the fast tracking of black officers, special training programmes and empowerment, and a specialised recruitment programme will be implemented.

Just as much as we need the right modern equipment with which to enter the new millennium, so too do we need the right modern practices and ideas.

We must have a defence force that is in step with the people and principles of our new democracy.

This year sees the implementation of our Civic Education Programme.

The programme will assist our members in becoming familiar with:
- The key features of the democratic political process;
- The Constitution and the Bill of Rights;
- Civil-military relations in a democracy;
- International humanitarian law;
- Respect for cultural diversity;
- and Military professionalism in a democracy.

It will be monitored by a very powerful group of academics and Parliamentarians so that we can continue building a new spirit in our defence force.

One which instils pride through loyalty and commitment to our country, our democracy and all our people.

It is a singular challenge to each and every one of us to ensure a defence force that is a home to all - irrespective of race, religion, background or creed.

lV. THE DEFENCE ACT

Turning now to the Defence Act.

A new Defence Act will be completed by the first half of 1998 as a matter of urgency.

It will overhaul and reform the entire military justice system.

And it will enable us to deal with the problems and controversies surrounding the courts-martial process.

This is a pressing matter which has the highest priority.

In the interim, the existing military justice system must be administered in as fair a manner as possible.

V. THE PART TIME FORCE

Turning now to the Part Time Force.

The nation-wide recruitment programme called for by President Mandela must be enthusiastically implemented.

New PTF units based on townships and rural villages must be developed so that the PTF becomes representative of the population.

VI. VETERANS

This year we will introduce a Military Veterans Bill, and create a Veterans Directorate in the Ministry of Defence, so as to more effectively attend to veterans' needs.

Vll. ONGOING COMMITMENTS

There remains a large amount of ongoing work which Defence will continue to manage on a daily basis with regard to:
- Support for the South African Police Service in the fight against crime; Patrolling our borders;
- Search and rescue missions;
- Disaster relief and humanitarian support.

In this context, I would particularly like to draw attention to yet another example of the outstanding service rendered by our defence force.

The South African Air Force with the department of Foreign Affairs has, over the past two weeks, been flying relief aid to Tanzania after the serious Roods there.

Sixty-four tons of medicines and construction materials have been delivered across Tanzania to assist in the repair of its infrastructure.

In addition to airlifting this aid, the SAAF has provided a helicopter to transport the President of Tanzania and other cabinet members in their aerial assessment of the flood damage.

I am proud to say that our prompt response underlines our commitment to assist in our continent's reconstruction and regeneration.

We are proud of the SAAF which deserves our congratulations for this magnificent effort.

CONCLUSION

It remains for me only to acknowledge the efforts of the Department of Defence in ensuring the success of our policy and to express my great appreciation for the sterling efforts of the SANDF in the service of the nation.

I will now take questions from the floor.

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