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SPEECH BY THE MEC FOR TRANSPORT, KWAZULU-NATAL, MR S NDEBELE: TRANSPORT BUDGET SPEECH, 16 March 2000

Introduction

Mr. Speaker, Honourable Members, Honoured guests, Members of the media..

The government of KwaZulu-Natal was constituted on 18 June 1999. This followed a punishing election campaign and a gruelling round of negotiations to reach coalition.

A fortnight after the establishment of the government in this province, I was in a supermarket in Johannesburg. I became apprehensive as I saw two African members of staff pointing at me. Clearly I was the subject of their discussion.

One of them, an old man of about 55 years, approached me and shook my hand. He congratulated me profusely, saying that I had no idea - how much and what we had done in KwaZulu-Natal, had restored their self-respect as a people of our province. He was from Nongoma.

The woman joined us, adding her words of support. She said that she came from KwaMashu.

Her words were, "with you working together in KwaZulu-Natal, we can now rest. We can visit our families in the province in peace, and we can live peacefully here in Gauteng."

Together, they explained to me that when any violent conflict breaks out in KwaZulu-Natal, it is immediately translated to those living and working in Gauteng.

No matter how peacefully they were staying in Gauteng at any time, there was always the fear that violence in KwaZulu-Natal would translate to violence in Gauteng. And vice versa.

This convinced me more than ever that the first delivery in KwaZulu-Natal must be peace.

Without peace, "it is vanity of vanities,". All is vanity. (Ecclesiastes 1:2)

The drive to establish peace must be relentless.

Where peace is unknown
Make it welcome
Where peace is fragile
Make it strong
Where peace is temporary
Make it permanent.

The Indicator South Africa, volume 16 no 4 of 1999, published by the University of Natal, reported the results of two opinion surveys. The first survey, conducted in April 1999, concerned the role of opposition parties in the political process. The second survey, conducted in August 1999, was on popular opinions concerning coalition government in KwaZulu-Natal.

I draw your attention to the key findings of the second survey:

* On the question as to whether the ANC and IFP should govern in coalition, or whether only one party should govern the province, 68% of respondents answered in favour of coalition.

* 72% of IFP, and 77% of the ANC supporters, recorded the highest level of support for the coalition government. 51% of DP, and 37% of NNP supporters, were in favour of coalition.

* On the question of whether or not the ANC-IFP coalition would promote peace in KwaZulu-Natal, 86% of IFP supporters agreed, 76% of ANC supporters agreed, 64% of DP supporters agreed, and 40% of NNP supporters agreed. Only UDM supporters, with 21%, were pessimistic concerning the ANC-IFP coalition government promoting peace.

* On the question of the coalition government positively influencing development, 89% of IFP supporters were optimistic, followed by ANC - 85%, DP - 64%, NNP - 46% and the UDM - 21%.

To sum up, the survey concluded that "the majority of respondents agreed that coalition government is a good thing. .that it will promote peace and development....(and) that they were very positive about the expected performance of provincial government during the current term.

While only 53% approved of the performance of provincial government between 1994 and 1999, a high 75% expected better performance in the next five years."

Clearly the KwaZulu-Natal public has faith in our coalition government and believes that it can achieve lasting peace and sustainable development. They know - and we know - that without peace, there will be no development - and that without development, there will be no lasting peace.

With peace, there is no reason why development programmes cannot be initiated to assist communities in all the regions and districts in KwaZulu-Natal.

The survey located the KwaZulu-Natal Coalition Government firmly within an African model of democracy, which prioritises concrete economic performance, ahead of more abstract political issues. The conclusions of the survey resonate with what President Mbeki has always emphasised for our African Renaissance. Namely that political liberation, without economic liberation, might not in itself be sufficient to sustain our democracy.

Our South African history is one in which Black South Africans were systematically denied full participation in the economy. It is not surprising then, that the majority of South African citizens now look to their democratically elected government to deliver on economic issues. It is President Mbeki's profound understanding of the need to narrow the gap between rich and poor, that now labels him Mr Delivery.

We in this house fully appreciate that the majority of our KwaZulu-Natal citizens are considered poor.

* It is this majority that voted in our coalition government.

* It is this majority that believes that our coalition government can deliver its mandate of lasting peace and sustainable development.

* It is this majority that expects us as government to prioritise our budgets to shift resources towards those programmes that have most meaning in the lives of resource-poor communities.

Coalition governments work if the parties involved fully understand that it is agreed-upon programmes of government, and their adherence to these, that binds them. It is usual for coalition governments all over the world to allocate budgets towards those priorities that coalition partners agree upon.

We as political leaders cannot simply rely on an upturn in the economy to solve the problems of the poor. There is ample evidence to suggest that the very poor, and especially the rural poor, are least likely to benefit directly from growth in our economy.

Democratic South Africa is increasingly integrated into the global economy - which has a strong emphasis on high skills to ensure international competitiveness in productivity. Decades of social neglect have precluded the rural poor from developing the skills that now define international markets.

Our first step then as a coalition government should be to acknowledge our responsibility in the social and economic upliftment of our majority citizens. This means that we have to budget our priorities accordingly and that we must acknowledge programmes that make a difference by voting them additional funds.

When I became the first MEC of Transport in the 1994 KwaZulu-Natal government, I saw my mandate as one of providing a balanced road network, a safe road environment and, in the process, creating work and business opportunities for those previously denied them.

I believe that under this coalition government, that this is still my top priority as MEC for Transport. In this, I am particularly mindful of the fact that the Department of Transport is a service-provider to all other Departments. Our performance affects the performance of all other Ministries.

Therefore, much as I am appreciative of the fact that our 2000/2001 budget has increased from R696 million to R855 million, I want to say up-front that this is not enough. We have used, and will continue to use, our budgets to serve the public of KwaZulu-Natal. They expect much of us and deserve more than they are getting.

This house has always acknowledged that the Department of Transport has delivered on its mandate and that each year its performance has improved. We have always presented to you our results in measurable indicators for your scrutiny. I now turn to the delivery reports from the various aspects of the Department of Transport.

Budget

In 1999/2000, the Department of Transport received a budget of R696 million. In 2000/01, this has been increased to R855 million. While this is a 23% increase in nominal terms, in real terms the increase is limited because of increases in the costs of fuel, imported materials. Such increases impact more on the budget of the Department of Transport than they do on other departments.

Highlights of our 2000/2001 budget allocation are:

* R145 million to the Development Directorate, of which R15 million is earmarked for Zibambele and R130 million for Community Access Roads and the Emerging Contractor Programme

* R354 million to Road Construction and Maintenance, with R7 million to the further planning of the John Ross Highway between Empangeni and Richards Bay. Not included in our total budget is R23 million for feeder roads for the Lubombo SDI

* R19,8 million goes to road safety communication, advertising, research and evaluation. R10 million to road safety engineering or blackspot projects

* R75 million to RTI with R65 million of this dedicated to enforcement

* R12,2 million to public transport, excluding public transport subsidies which are paid by the national Department of Transport

* R15 million to equity, transformation and our Citizens Charter programme.

The Department of Transport continues to be a major source of revenue for the province of KwaZulu-Natal. By the end of March 2000, Motor Licensing alone will have raised R293,8 million - this includes R2,5 million from personalised numbers.

Chief Directorate: Roads

71% of our budget is allocated to the Chief Directorate: Roads.

The Department of Transport has now completed its assessment of KwaZulu-Natal's needs for a balanced road network. This study has identified a road network of more than 42 000 kms. Parts of this network have previously been under different managements and are in a variable state of repair.

Other parts were totally neglected with no responsible authority in attendance.

We have 24 306 kms (728 kms blacktop, 17 578 kms gravel) of road network which are still maintainable. We have 17 719 kms of road which must be urgently upgraded to become maintainable. 800 kms of this are blacktop.

The total asset value of our roads is R11 billion.

The SA National Roads Agency is responsible for all national routes that carry interprovincial or international traffic - our N2 and N3, for example. Local authorities are responsible for all streets and roads within the TLC areas, which fall outside of our responsibility.

Our first responsibility is to ensure that all of these roads are kept in an acceptable condition. It will require an annual budget of R1,145 billion a year for five years to upgrade and maintain our road network to an appropriate minimal standard.

Road Maintenance

Blacktop and gravel roads are designed and constructed knowing that deterioration of the road surface will take place over time and that maintenance measures will be needed.

However since the mid-1970's, expenditure on road maintenance has declined to the extent that the amount made available in 1996 was less than the amount available in 1969.

The economic costs of poor road maintenance are borne primarily by road users. Current indications are that 6 billion kms are travelled on the KwaZulu-Natal provincial network annually. If current deterioration patterns continue - the increase in vehicle operating costs to the user will be R1,265 billion per year.

In education they say that "if you think education is expensive, try ignorance."
In transport we echo JF Kennedy's words: "It is not the wealth of a country that builds roads, it is roads that build the wealth of a country."

I am particularly concerned how the road network affects agricultural performance. Agriculture is a strong contributor to our provincial economy. An appropriate road network to support current production initiatives, and to realise our full potential, is of critical importance.. I am particularly pleased that organised agriculture is now fully participating within our Rural Road Transport Forums. This follows very productive talks with agriculture on how agricultural roads can be most profitably upgraded and maintained. I am equally pleased with the joint committees that have been set up to pilot joint initiatives in Hlabisa and Nkandla. I would like to thank the Hon Minister Singh and the Department of Agriculture for their support.

In 1999/2000, Cabinet responded to the critical maintenance needs of our road network by providing a R44 million conditional grant to the Department of Transport for road maintenance for blacktop roads. With this grant, we have completed work on:

* The Eshowe by-pass, Nkwaleni Hill between Eshowe and Melmoth, Dundee to Bloodriver, Bloodriver to Vryheid, Edendale to Lundy's Hill, Merrivale to Boston, Bulwer to Underberg, Matatiele to Kokstad

While road users on these routes will undoubtedly benefit from the R44 million conditional grant, I regret to inform this house that during the December/January floods, very extensive damage to the tune of over R50 million was done to our road network.

Many communities are still cut off from the road network. General mobility has been disrupted, and many people have no road access to work, schools or clinics.

The type of damage we are facing includes:

* Whole roads have been washed away, Extensive pot-holing and sink-holes, Low level crossings have been washed away, Approaches to bridges have been washed away, Armco piping has rotted

The Department of Transport is undertaking a detailed assessment of the longer term structural damage caused to the road network by floods. What are already certain that the budget levels that I have reported on are in fact an under-estimate.

Road construction

It was not that long ago that the road between Durban and Pietermaritzburg was a single carriageway. Traffic was slow, the economy was slow, growth was slow. Today the N3 between Durban and Pietermaritzburg has the highest traffic volume in the country. I think every-one will agree that the N3 has contributed very significantly to the growth of the Durban-Pietermaritzburg corridor.

What was experienced then between Durban and Pietermaritzburg is still being experienced today in our second biggest hub, Empangeni to Richards Bay.

Today I can announce that, after four years of intensive negotiation, the John Ross Highway between Richards Bay and Empangeni will be upgraded to a dual carriage highway at a cost of R200 million.

We will complete the design in June and construction will begin in September.

In the project, a bridge of over 1 km will be built over the floodplain. This will be the longest bridge ever built in South Africa and I am proud that my department will design it.

Another R200 million is being spent on the Lubombo SDI. This is being done in four phases.

The first phase, Hluhluwe to Lower Mkuze Bridge, costing R55 million, has been completed. At the extreme end, the section from Phelandaba to Mozambique, costing R39 million, is 80% complete.

The Lower Mkuze River bridge is under construction right now, costing R14,6 million. This was visited late last year by Minister Nkosi Ngubane, Minister Mabuyakhulu, Minister Singh and myself. Phases two and three will be contracted this year.

Current indications are that on the first section of road, emerging contractors were contracted for 30% of the value of roadworks. On the fourth section of road this increased to 68%. The Steering Committee of the SDI road is chaired by Kwazi Mbanjwa, my DDG.

An additional budget of R23 will be spent to upgrade part of the feeder road network.

Also in 1999/2000, a new consortium known as N3 Concessionaires was formed and was awarded a twenty year toll concession for the N3 from Hiedelberg in Gauteng to Cedara, just outside Pietermaritzburg. For this, they have paid R1,3 billion..

Our own construction units have undertaken significant road upgrading including

* Main Road 54, to link Nqutu and Blood River
* P100, which serves the community of Ndwedwe
* A new link between Gamalakhe and Boboyi.
* Rehabilitation on Main Road 46 - Vryheid to Hlobane

Emerging Contractor Programme

It gives me particular pleasure to also report on a road construction programme which is undoubtedly unique to KwaZulu-Natal. This programme concerns the construction and maintenance of roads identified as priority needs by Rural Road Transport Forums and the communities that they serve.

The projected surge in government expenditure in the construction industry coincides with more than a decade of recession in an industry that has seen many major role players wind up their businesses. This now creates a window of opportunity for black empowerment within the construction industry.

The Development Directorate has adopted a systematic approach to integrating the emerging contractor sector into the mainstream construction industry as a powerful player. The 2000/01 budget allocation will now include a dedicated training budget.

The aims of the programme are to:

* Promote and support affirmative business
* Promote equity in the civil contracting sector
Promote sustainable business development

The emerging contractor programme has excelled because of the relationship that has existed to date between the Department of Transport and the Tender Board. As a result of this, we will spend R150 million on emerging contractors by the end of 2000/2001.

I normally get information promptly from my Department when I ask for it. I am baffled why I am not getting a straight answer when I ask for any department in the country that spends this much on emerging contractors.

Zibambele

I am also proud to report on our Zibambele initiative.

After the June 1999 elections, the President of our country, Mr. Thabo Mbeki, tasked all portfolio Ministers in South Africa with developing innovative programmes that meet the needs of the poor.

In rural KwaZulu-Natal, there is a strong correlation between deep poverty and women-headed households. Here, the number of women-headed households has increased through decades of civil conflict, which saw thousands upon thousands of women widowed.

Consequently, I championed R10 million expenditure on the development of our Zibambele (Doing It For Ourselves) programme - this is a social responsibility programme that creates sustainable job opportunities for poor rural families through the maintenance of rural roads.

While world wide development investments usually target those sectors of a population with a high potential to succeed, our Zibambele initiative gives road maintenance contracts to the poorest and the most marginal in rural areas.

Zibambele has put to work those people who would normally be left out of any opportunity because of their desperate poverty. In the process, the long term prospects of each Zibambele household are enhanced through improved access to schooling, credit, to nutrition and to skills training.

All but one percent of Zibambele contracts have been issued to households that are headed by rural black woman - this makes Zibambele arguably the biggest rural gender empowerment programme in the province. Zibambele contracts have been issued to families that had a zero income before the start of this programme. Each contract runs for one year, but it is intended that contracts will be extended annually and that they will last for as long as the road maintained is of value to the community.

Currently, there are 2 700 Zibambele contracts up and running in KwaZulu-Natal. Each contract brings a monthly household income of R250,00 for a maximum of sixty hours work per month.

When Zibambele contractors are given a contract, they are also given a wheelbarrow, a pick, a shovel, a machete, a slasher and a hoe. These tools bring resources of inestimable value to areas largely dependent on subsistence.

In 2000/2001, we have set a target of 6 000 Zibambele contractors. We have also begun to link the Zibambele system with a labour-intensive road construction programme.

Basket of funding for Nkandla

As promised we have seen increased activity on roads in Nkandla. This follows our commitment to give special budgets to districts which have a hopelessly inadequate road network, very high levels of poverty and a significant agricultural potential.

21 emerging contractors have been involved in the following projects:

* construction of 3 causeways on roads A1541, P16/2 and P708
* construction of 3 community access roads namely A1598, A1503 and the Nsimbini road using labour-based construction
* 55 km of improvement of 5 gravel roads namely P707, P708, D1593, D1599 and P50 north of Nkandla
* upgrading of 14 km of P50 from Nkandla to Nkandla forest.
The cost of this work totals R6,367 million.

Summary of the Chief Directorate: Roads

The Department of Transport is in a unique position in that with sufficient funding, it can bring about new road developments that can diversify the rural economy, increase agricultural production, dramatically increase time-savings and reduce the social and economic costs associated with rural life.

We have already adopted a proactive management style, as is evidenced by what we have achieved to date.

* In April 1997, we amalgamated the former Natal Roads and the KwaZulu Works Department's Roads and Bridges division

* We initiated the Community Access Roads Needs Study which has received national acclaim and has now been adopted in the Eastern Cape. 30 Rural Road Transport Forums were established as permanent links to, and for consultative decision-making with, rural KwaZulu-Natal

* The Roads Bill was drafted

* We were a key role player in the national Department of Transport's "Moving South Africa" initiative

* We prepared a report, "The Road to Wealth and Job Creation"- a plan to create jobs and SMME development - in February 1998. This was adopted by all nine provinces and was presented at the Presidential Jobs Summit in October 1998 by the Hon Minister of Public Works, Mr Jeffrey Radebe.

* We also negotiated Tender Board approvals and concessions for the employment of emerging contractors and Zibambele maintenance contracts and aggressively rolled out our Zibambele system in all regions of the province

Chief Directorate: Transportation

Taxi Registration, Democratisation and Recapitalisation Programme

On Tuesday, 29 February 2000, I met with the provincial taxi industry and they gave their full support to the taxi recapitalisation process that has claimed media attention in recent months.

This is a plan to revamp the country's taxi industry by replacing the ageing fleet of 126 000 vehicles with custom- made 18 and 35-seater taxis.

Background to recapitalisation

* Historically, those finance houses that were prepared to deal with the taxi industry levied exorbitant fees. High costs have affected the ability of taxi operators to renew their vehicle fleets.

* Parts used for vehicle maintenance have become more expensive, which has resulted in unmaintained taxis.

* There has been a decrease in taxi fares which this has resulted in shrinking of profitability for taxi operators.

* Current 16 seater taxis are designed in such a way that does not prevent overloading. This is unacceptable both for road safety reasons and for commuters.

These problems prompted government to develop an economic restructuring and recapitalisation programme. The national recapitalisation programme is a co-ordinated solution in six areas:

* 18 and 35 seater vehicles will be produced to replace the existing aging fleet. A manufacturing company will be selected which will be able to be cost-effective, meet the safety requirements for this public transport industry, and will be able to provide after sales service and manufacturing stability. Successful bidders will be selected at the beginning of April.

* A scrapping allowance of R30 - 40 000 will be paid to taxi operators as an incentive for them to submit their old vehicles to be scrapped. This amount will be used as a deposit on a new vehicle

* Operators will be able to submit their vehicles for scrapping until 2004/5.

* A competitive vehicle finance and insurance facility will be built into the programme.

* Smart-card technologies will be incorporated for fare collection.

* It is envisaged that the vehicles will come with a full-maintenance plan over four years.

The programme is planned to start in October this year.

In KwaZulu-Natal we have long seen the recapitalisation of the taxi industry as one of the ultimate stages in the restructuring of this industry. We have long realised that the present 16 seater taxis were not the ideal public transport solution for commuters in this country - for reasons of road safety, overcrowding, and non-profitability for the industry.

However we have known that recapitalisation would fail if the structural and economic problems facing the taxi industry were not addressed first.

Taxi Registration

The last five years have seen a nation-wide drive to stabilise the taxi industry through the registration with provincial government of all taxi associations, all taxi operators, their vehicles and the routes they drive.

Before democracy five years ago, an archaic taxi permit system existed that gave no clear operational rights and responsibilities. Almost 60% of the industry did not even have permits. As a result, there was extensive overtrading of taxi routes.

KwaZulu-Natal is acknowledged to have led the strategic development of the registration programme that manages market entry and gives clear rights and responsibilities to taxi operators for specific routes.

To date, all 305 taxi associations in KwaZulu-Natal have been registered with the provincial taxi registrar Those taxis whose registration details were unchallenged were issued with Interim Operating Permits.

We are now set to begin the creation of democratic associations, which are accountable to their members and the communities they serve. This feeds into the national process to restructure the taxi industry.

The aim is to ensure that decisions taken at local, regional and national taxi association level enjoy the support of all operators.

There are key national milestones:

The first part is the drafting of the national constitution

* The drafting team met yesterday and instructed all provinces to submit democratic schedules by Monday. They have two weeks to submit inputs into the drafting process - our input is already finalised in the form of our provincial constitution.
* The first draft of the national constitution will be released on Friday, 14 April and it will be finalised by 1 May 2000.
* During this period, a mass communication plan will unfold at both national and provincial levels
* April to 12 May 2000 - conduct provincial elections to elect provincial taxi council.
* May to 30 June - provincial taxi councils prepare for the election of a national taxi council
* July 2000 - national taxi council elected.

All these elections will be managed by independent electoral bodies. At the end of this process we will have provincial and national democratic structures within the taxi industry. The provincial taxi council will then initiate a process to elect regional taxi councils and local associations.

In 1999/2000, the Department of Transport embarked on a methodical enforcement programme for taxi permits once the registration process was complete. This has ensured compliance with the permit system and has been a resounding success.

In 2000/2001, our challenge will be to use our successful registration programme as the basis for the implementation of the taxi recapitalisation programme.

Last week, I sent a letter to all local authorities and other state institutions dealing with the taxi industry, highlighting a number of issues for concern. These mainly dealt with the co-ordination between our taxi registration processes and the granting of ranking and operational permits at a municipal level. I also raised the issue of the reluctance of some local authorities and enforcement agencies to enforce traffic regulations and to implement the various by-laws needed to enforce an orderly taxi industry.

I am confident of co-operation from relevant authorities, which will be to the benefit of all of us.

Economic Empowerment in the Taxi Industry: Umthombo, Investment Company

As we legalise the taxi industry, we as government cannot absolve ourselves of the responsibility to ensure that a foundation for sound economic development exists for the taxi industry to build upon.

This is, the only sector of the South African economy where black people can claim dominance. We cannot afford to ignore this.

Furthermore the taxi industry plays a significant role in the day-to-day mobility of the working class population.

Over the past twelve months the Department of Transport continued to facilitate the economic development agenda within the taxi industry.

* 14 Taxi Industry Co-operatives were established within the province

* 8 of these have now started trading..

* Umthombo Investments Company, which is owned 100% by the 14 Co-Operatives, was registered and launched in April 1999.

* Umthombo Distribution Services has for the past six months been trading in tyre distribution. To date a total of 3 400 tyres have been distributed with a total turnover of R1.3 Million. The business is now in the process of rolling out the distribution of brake pads; engine oils, body panels, wind screens and other components. The projection is that the distribution business will move into a positive cash-flow position in the next twelve months, with turnover estimated at R14 Million.

* Umthombo Insurance Services sold its first policy in August 1999. The first product, a fully-comprehensive vehicle cover, is the most beneficial in the market in terms of its custom designed features, and is the cheapest the taxi industry has ever had.

* Malandela Motor Assemblers have now reached an agreement with another of the groups that have been short-listed in terms of the Recapitalisation Project. The agreement sees Umthombo Investments Company being included as a Consortium Partner and also sees the Malandela plant being integrated into the manufacturing strategy of the Consortium. All now depends on the Consortium being awarded the tender.

The Property Development Unit is managing a schedule for the development of taxi cities across the 14 economic nodes.

Bus Contracts

I turn now to the issue of public transport subsidies.

Before 1994, the administration of bus subsidies was a national government competence, but the last five years have seen increasing responsibilities for bus subsidies being transferred to the provinces.

While the R250 million budget for KwaZulu-Natal bus subsidies still resides at national government, we have the policies and programmes needed to design, implement and monitor bus contracts right here in our province.

Consequently, KwaZulu-Natal is the only province to comprehensively manage bus contracts at a provincial level. We rely on the national Department merely for the physical payment of subsidies.

Monitoring of bus contracts

As a part of our provincial responsibility for bus contracts, my department has undertaken the monitoring of bus contracts. For this, we budget R2,5 million per annum.

I am pleased to announce that in 2000/2001, we are implementing an intensive empowerment programme that will see the phasing over of this budget to monitoring teams consisting of community representatives along the bus routes.

As with Zibambele, this programme will target the poorest households along the bus routes, bringing both social payments and communication infrastructure to these areas.

Traditionally, the monitoring of bus contracts is used to verify claims submitted by operators for payment and to ensure quality control. Up to now, monitoring contracts have been awarded through open tender and monitoring teams have been attached to our technical consulting firms. A schedule detailing this is included on the page opposite you.

Our new approach in 2000/2001 will consist of the following:

* We will establish and publicise a dedicated call-line -a toll-free number- for bus service complaints. Complaints will be addressed immediately and then followed up at monthly meetings with the Department of Transport, the contractor and the monitoring team.

* We will analyse all bus contracts and match them to Rural Road Transport Forums and other organs of civil society that cover the area. What we foresee is that these community forums will assist us in establishing technical committees representative of all communities along the route. These will be pulled into our existing monitoring arrangements to establish capacity on how monitoring works.

Where possible we envisage that, in time, the technical committees will take over the management of the monitoring of bus contracts in the area. They will assist us in setting up the standards for the bus contract.

* As the existing monitoring contracts draw to a close, the Technical Committees will consult communities and identify needy people along the bus route who will act as monitoring agents. The number of monitoring agents will depend on the length of the route. Monitoring agents will be armed with communication tools and will liaise with commuters and report all contraventions of the bus contract back to the Department of Transport for hard-hitting action.

* The monitoring agents, representatives of the technical committees, the contractor and the Department of Transport will meet on a monthly basis to assess how the contract is working, and whether the services that were promised are being delivered.

* A portion of the monitoring contract will go to satellite monitoring that will provide back-up information to verify any transgressions in service delivery.

Corporatisation of Bus services

1999/2000 has seen key players in the bus industry in KwaZulu-Natal contend with new legislation that sets conditions for publicly-owned bus companies if they are to receive government subsidies.

This legislation states that government-owned bus companies can only receive subsidies if they operate on business principles with financial ring-fencing, and pay income tax.

The rationale behind this legislation is to ensure that when financial crises arise in state-owned bus companies, these have no unfair advantage over the private sector through direct access to resources from any organ of state.

Two large companies that have been affected by this legislation are KwaZulu-Transport and Durban Transport.

KwaZulu-Transport has completed its corporatisation, or ringfencing, and is financially much healthier. A better service is offered to commuters and many of the hidden inefficiencies have been rooted out.

Durban Transport is in the process of corporatising for this very purpose.

Asiphephe - Let Us Be Safe Road Safety Programme

Road Safety Statistics

Since the formation of the Victoria Project, and later Asiphephe, there has been a decrease in road fatalities in KwaZulu Natal.

During the 1999 end of year school holiday period, there was a reduction in deaths in KwaZulu Natal despite the fact that in their data collection the national Arrive Alive programme incorrectly allocated deaths to this province and duplicated the counting of some collisions. Over Christmas 98/99 there were 171 fatalities in KwaZulu-Natal - over Christmas 99/2000 there were 162. This was in spite of the heaviest rainfall in 40 years, 25% more holiday traffic than usual, concentration of traffic at beachfront festivals and high alcohol usage attributable to Millennium Madness. Indeed, we estimate a saving of at least 50 lives was achieved in a six week period. Here I refer you to the statistics on the opposite page.

At this stage let me remind you that there were three main venues in South Africa for the millennium - Durban, Robben Island and Pretoria. Of these, Durban saw the only people-centred celebrations for the millennium - due to Durban's reputation as the cheapest holiday destination for ordinary people in South Africa.

Enforcement

In 1999/2000, the Traffic Camera Office, issued 80,000 offender notices over the six week Christmas period alone.

In the Department of Transport we are presently addressing concerns over the under-regulated vehicle testing stations and the fraud and corruption which enables unroadworthy vehicles to be driven on the roads of our country. We are starting to deal strictly with those who contribute to allowing dangerous vehicles on our roads.

I can also announce that from May this year, it will be illegal to talk on a cell-phone while driving a motor vehicle unless you have a hands-free kit. All traffic agencies throughout this province will strictly enforce this legislation, and fines will be in the region of R100.

Advertising.

In 1999/2000, the province produced and flighted a comprehensive television and radio campaign nationally.

We also made videos on critical behaviour - speed, alcohol and overloading. We believe that this will assist us in sensitising magistrates especially, to the need for harsh penalties for drunk driving offences. Honourable members will remember the report in last Sunday's Tribune in which I called for an examination of a specific case where a women with three times the legal blood alcohol level got off scot-free due to a lenient magistrate. We are determined that this will not happen again in the future.

These videos, along with our road safety adverts, are being screened in the foyer of Parliament today

Education

Education projects in schools and communities continue, with 20 Community Road Safety Councils having been established to date.

Research

The University of Natal Accident Research Centre (UNIARC) was established by the Department of Transport in 1999.

Department of Transport and Durban MetroRail Partnership

Durban MetroRail and the Department of Transport are to combine their road safety initiatives in their efforts to promote safe travel on all modes of commuter and public transport. This will reinforce the safe travel message and this will certainly contribute significantly in changing attitudes and behaviour patterns. This will ultimately contribute to the reduction of fatalities and injuries associated with all modes of public transport in KwaZulu Natal.

Road Safety Evaluation

It is my belief that there are many areas of very positive and influential reform in Road Safety initiatives in our province. A permanent Asiphephe Directorate, properly managed, will pull together the elements in a more effective manner, and will also manage the re-constitution of the co-ordination committees - the Road Safety Board, Management Committee, and team meetings which are vital to ensure collaboration by all role-players.

I am particularly pleased that my confidence in Asiphephe has been confirmed through an impartial road safety evaluation process. The Asiphephe Evaluation Report, makes 50 recommendations for the future of our road safety programme and under the current Acting Directorship of Vicky Cunliffe, these are being addressed.

Highlights of the Evaluation are:

* We need to move from a project to a programme - we are doing this through the formation of a permanent directorate - and we need to redirect the role and function of the Road Safety Board and management groups.
* The advertising strategy of Asiphephe was particularly praised, with the suggestion that this province is given responsibility for all national advertising.
* Road Safety data must be brought under the new Directorate as it is an essential ingredient in running a data-driven strategy - this will be undertaken this year.

AARTO

Looking ahead, we eagerly await the implementation, in October this year, of the national AARTO legislation - this is the Administrative Adjudication of Road Traffic Offences legislation.

As with the taxi process, we are proud that the AARTO legislation had its beginnings in KwaZulu-Natal, where we identified the need to streamline the involvement of too many stakeholders - like the police and the judiciary - in the administering of traffic fines.

AARTO brings judicial sanction to our enforcement initiatives by putting the onus on the offender to prove innocence in the case of traffic offences - instead of the current system that places the onus on the judiciary to prove an offenders' guilt.

Obviously, as the final sanction to fast driving is a fine, the actual payment of this fine will change driver behaviour. We presently collect between 15 and 35% of fines issued so we are only influencing that small percentage of drivers. This is because, under the present system, if you choose to ignore paying your fine the matter goes out of our hands and the justice system picks up the process.

AARTO will remove the responsibility for collection of fines from the courts, and will be an administrative process that we ourselves will oversee. Penalties will be levied for non-payment after the first notice, and we as the AARTO agency will be responsible for collection - with powers to issue demerit points (which can result in loss of license), confiscate property, and the like.

This same process in Australia led to very high compliance from a situation very similar to ours (they now collect 93% of fines within 30 days). AARTO will themselves take a percentage of the fines collected, and the balance will come to the province as additional revenue.

AARTO will ensure that it is more difficult for Joe Citizen to get away with not paying his fines. He will get demerit points, he will not be able to re-license his vehicle unless all his fines are paid, and he may even have his goods confiscated in lieu of fines. AARTO is the brainchild of KwaZulu-Natal and we are 100% ready for its implementation. Our Traffic Camera office is in an ideal position to begin implementation of AARTO in KZN. It should raise many millions for the province annually once it is implemented and, more importantly, lead to behaviour change which will save precious lives on our roads.

Remember, fines are a voluntary contribution to government coffers - you choose to pay when you choose to break the rules of safe driving. No one is compelled to incur a fine - everybody is compelled to pay their fines.

Also this year, the national Department of Transport will implement the Road Traffic Management Corporation which will be a joint initiative, with the national Minister and nine provincial Ministers - including myself - as shareholders.

There will be provincial offices, and these will coordinate mainly the work of the various enforcement agencies. It will work closely with AARTO.

With the introduction of AARTO, chronic repeat offenders will get their licenses endorsed, suspended or cancelled through the road safety demerit points system. Along with stringent drivers license enforcement, and heavy fines issued for unlicensed driving, we will use this as a very powerful deterrent against bad driving.

The KwaZulu-Natal Department of Transport will be embarking on a massive campaign to enforce the carrying of drivers licenses in the build-up to the implementation of AARTO in October.

Administration

Human Resources Development /Equity Programmes

In 1999, the Administration Directorate put in place a comprehensive Equity Plan for the Department of Transport. This is a fully consultative programme that has been designed to allow each and every staff member a proper opportunity to make input into, and gain ownership of, the Equity Plan.

The Equity Plan formalises our long-standing race, gender and disability targets and puts in place transparent processes that mean that all levels of staff agree with, and actively assist in, meeting the agreed ideals. By June 2000, an Equity Programme that is fully in keeping with national legislative requirements will be in place.

Right now, skills audits, workshops, and communication programmes are taking place throughout the Department of Transport. These encompass the national qualification framework, affirmative action, and human resources development. Issues such as cultural diversity are also addressed through the Equity Plan, and after June we will finalise a Human Resources Charter that will inform and empower staff around the common cause of better service delivery.

Motor Licensing

Recently, improved technology in the number plates manufacturing industry has led to number plates that accommodate seven rather then the present six digits.. We believe that they will also be able to accommodate the incorporation of additional colours besides the standard green used for personalised plates.

Consequently, from May this year, the Department of Transport will offer members of the public a seven character alpha-numeric combination for personalised number plates. Later on in the year, we also intend to allow registered logos to be used in personalised number plates.

A new fee structure will come into place, ranging from R1500,00 for standard seven- digit number plates to up to R3000,00 for personalised plates that include registered logos.

This new scheme has nothing to do with the fact that there are seven characters in "Ndebele". Indeed, we have been constantly lobbied by the public for these additions to our programme, and are pleased to be able to respond in this manner.

A test-case for the introduction of logos in personalised number plates will be run with the Comrades Marathon Association. Both the Comrades Marathon and our Personalised Number plate programme are initiatives that the people of KwaZulu-Natal are proud of. We are pleased, therefore, to bring them together. Runners who complete more than ten marathons, are allocated special green numbers that become their registration numbers for all future marathons they run. Our test case will involve making personalised number plates out of these numbers, with the Comrades marathon logo incorporated on the plates. This will come into being once the license plate manufacturers meet SABS requirements for this purpose.

We have also issued a policy directive to the Motor Licensing Bureau instructing them to identify the 40-odd personalised number plates that are too close to each other for comfort and differ merely by one digit. We will offer new registration options to the owners of these numbers, at our own cost, to clear up recently reported problems of mistaken identities between personalised number plate owners.

Provincial Motor Transport

In 1999, running costs for the provincial vehicle fleet have stabilised despite fuel price hikes and the ever increasing age of the vehicle fleet. Corruption has been rooted out of the system, and checks and balances ensure efficient and non-fraudable processes. In 1999 we embarked on successful court action against those companies at the forefront of corruption in this sector. We also successfully defended ourselves against claimants who undertook repair-work on vehicles without the necessary authorities. In total, we saved nearly R80 000 in this way.

From 2000, Provincial Motor Transport intends to set up a number of pilot projects for vehicle identification technology that will ensure optimal use of our vehicle fleet - this is in keeping with national trends. The aim of these projects will be to use technology to, for example, prevent vehicles filling up with fuel over weekends, or if the petrol tank is not authorised via information technology. Vehicles will not be able to be started after hours without special authorisation codes that identify the driver, his or her route, and the like.

In 1999, the Provincial Motor Transport worked with Westbank to develop a SMME Programme aimed at targeting emerging entrepreneurs to give them a share of government repair contracts.

The aim is to nurture streetside mechanics who repair exhaust pipes and windscreens, do welding work, until they can take on engine overhauls and the like.

Examples of where this could happen are
* Government garages and fuel depots
* The chauffeur service
* The fleet management contract

I look forward to being able to report great progress on this programme to you in the future.

Concluding Remarks

In a province with our history, good governance is about the democratic management of our society. It is about reforming the state to make it efficient, effective, and consultative. It is about the provision of basic services to the public. It is about closing the gap between rich and poor. This necessarily requires budget reform, and a re-prioritisation of budgets to tackle key objectives.

In the Department of Transport, we have tackled the key objective of developing a balanced road network by setting aside budgets to meet critical backlogs, in which community leadership can prioritise their most pressing road infrastructure needs with the assistance of our departmental officials.

We have tackled the objective of a safe road environment by introducing a wide range of programmes to make public and private transport safer. These include the transformation of the taxi and public transport industry, community education programmes through Asiphephe and zero tolerance for traffic offences.

We have tackled the objective of Black economic empowerment at all levels of society, from destitute widows in remote communities who have Zibambele contracts, to taxi operators who will benefit from the recapitalisation of the taxi fleet.

It is with great pleasure that I conclude my budget speech today by welcoming the new Head of the Department of Transport, Mr Kwazi Mbanjwa - who is well known to members of this house as a leading development activist in KwaZulu-Natal.

Over the past five years, I have worked closely with Kwazi, especially on issues of transformation and conflict management. Kwazi brings with him a leadership quality that is essential in times of profound change and challenge for the public service.

Kwazi Mbanjwa has been the DDG for Transport since 1 February 2000. In a very short time space, he has introduced the following far-reaching reforms which will undoubtedly make the Department of Transport a more effective service delivery agent. These include:

1. Business plans with measurable and quantifiable outputs have been prepared against all budget votes. The business plans are designed to improve management, financial accountability, and service delivery. The business plans allow us to set clear, unambiguous objectives and to monitor our performance against these on a continuous basis.

2. Kwazi commissioned an organisational analysis, which has proved:

* That the current organisational structure is no longer appropriate to achieve the Department's objectives and aims
* That the necessary changes will bring the Department's structures in line with the requirements of the Public Services and Public Finance Management Regulatory Frameworks
* And they will ensure that there is optimal and effective utilisation of resources

The new organisational structure has had the go-ahead from the Department of Public Service and Administration. What this means to the public of KwaZulu-Natal, is that in the near future they will be able to access all Department of Transport functions on a region by region basis through a "One Stop Shop". This central management system will make government more accessible and user friendly to all citizens.

We look forward to a restructuring programme which will open up new and exciting career paths for people with technical and managerial skills. The Department has an urgent need to recruit or train a cadre of professional, management and technical workers who have a proper appreciation and concern for the problems that rural people face on a daily basis. I am pleased to announce, therefore, that only last week, an agreement was reached with Federal Highway, USA, to establish a technology transfer centre in KwaZulu-Natal which will also serve the Eastern Cape. The technology transfer centre will be supported by the exchange programme as per the memorandum of understanding between KwaZulu-Natal Department of Transport , the Committee of Minority Transport Officials in Atlanta, and the African Working Group, USA.

Before closing, I would like to acknowledge the presence of Jenny Gray in the public gallery - we thank her for her service done and wish her well as she flies high.

Finally Ladies and Gentlemen, "No man is an Island." The achievements of the Department of Transport belong to all management who have worked selflessly to implement programmes that were always bold, innovative and sometimes foreign to their life experience. Our successes belong to the thousands of workers who implement management programmes and are our interface with the public and the communities we serve.

Thank-you.

Issued by the Office of the MEC for Transport, KwaZulu-Natal


 
 

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Last Modified: Thu, 17 Jun 2004 18:00:44 SAST