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INTRODUCTION

Comrade Speaker
Honourable Premier
Members of the Legislature
Comrades, Colleagues and Friends

It is with a deep sense of humility and pride that I stand here today to deliver my first Budget speech on the vote for Transport and Public Works. Indeed, it is an honour and a rare privilege to be counted among the women and men who have been charged with the historic responsibility of steering Gauteng as the "Smart Province" into the new millennium.

The ANC manifesto for the second democratic elections clearly stipulated what mandate was required. The people of South Africa in general and Gauteng in particular gave a resounding YES to enable us to go ahead and deliver. In this mandate the priorities of government were very clear - amongst them accelerated service delivery, good governance and development. This process of accounting and reporting back to the Legislature and the people of Gauteng is therefore very important.

Our President Thabo Mbeki, in his inaugural speech, clearly committed this government to accelerated delivery. You will notice therefore, comrade Speaker, that the Department and the Provincial Government under the leadership of comrade Premier Mbazima Shilowa has focused with unwavering determination on accelerated delivery and other priorities of government. We have endeavoured in every thing that we do to ensure that the people of Gauteng not only hear about, but also experience, a better life.

The Department has set itself a clear vision to provide "an integrated transport system and a client centred Public Works service which satisfies the needs of the people while supporting and facilitating social and economic growth and the development of all the people of Gauteng".

The Mission of the Department is to "promote accessibility and the safe and affordable movement of people, goods and services and to render efficient and effective Public Works services in Gauteng".

In order to achieve the above we set ourselves the goal to achieve the following:

* Sustain delivery for economic growth and development;
* Target areas and groups for poverty alleviation, social and economic upliftment;
* Maintain capital infrastructure investment for optimal resource utilisation;
* Enhance financial accountability through budget control and elimination of fraud and corruption;
* Secure alternative funding and resourcing for sustainability;
* Develop mechanisms for communication, monitoring and feedback; and
* Implement institutional transformation through targeted programmes of affirmative and human resources development.

REVIEW OF BUDGET 1999/2000

A comprehensive review of the department's activities and achievements during the 1999/2000 financial year will be given in its annual report to the Legislature.

One issue that I would like to highlight is the department's involvement in facilitating the successful transport arrangements for the All Africa Games, held in Gauteng last year.

I want to assure the Legislature that when they announce South Africa as the venue for the 2006 Soccer World Cup on the 5th of July 2000, we as a department will be ready to face the transport challenge of this event.

The higher speed rail link, as announced by the Premier as one of the ten SDI projects, between Pretoria, Johannesburg and the Johannesburg International Airport will be fully operational by then.

BUDGET SUBMISSION 2000/2001 FINANCIAL YEAR

Management & Administration
R 65,032 m

Strategic Planning
R 35,373 m

Transport Infrastructure
R 385,380 m

Transportation Management
R 197,118 m

Public Works
R 226,978 m

TOTAL
R 909,881 m

This is an increase of R83,583m compared to the 1999/2000 White Book allocation.

PUBLIC WORKS

COMMUNITY BASED PUBLIC WORKS PROGRAMME

Twenty projects were embarked upon in the last financial year. Fourteen of these were completed and six are continuing. Twelve new projects have been added this year. The projects done last year can be divided into four categories - additions to existing schools, clinics, pre- schools/crˆches and multi- purpose centres. All the projects were targeted at the poorest of the poor within our province. A new targeting strategy has been developed to increase the impact of this programme through a more integrated approach.

ASSET MANAGEMENT STRATEGY

The National Department of Public Works completed their national audit of state assets in the last financial year. The department has completed the verification process for the provincial asset register. In this financial year we will concentrate on evaluating the assets and developing and implementing strategies to optimise the value of these assets.

A review of our strategies has shown for example that it is costing the Province approximately R5m a month to rent and run the leased properties in the Province. An acquisition strategy has therefore been proposed in order to reduce these costs. As a result the Province has purchased a property at 75 Fox Street for R25m. The Premier will take occupation of this building as soon as possible. We will continue to look for opportunities to purchase more buildings in the Johannesburg Central Business District as part of this strategy.

The total asset management strategy will also include the recycling of existing buildings, increasing efficiency in the usage of existing accommodation as well as forming public-private-partnerships in the management of the assets.

MAINTENANCE AND REHABILITATION BACKLOGS

A comprehensive Health facilities audit was completed in the last financial year. Backlogs were identified. The reconstruction and rehabilitation of these facilities will continue to be a major priority this year. The purchase of the PREMIS Asset Management System will assist in the proper maintenance, prioritisation and management of all facilities in the Province. The lack of adequate funding for maintenance of buildings remains a major challenge for the Department. Various strategies are being developed to access alternative funding and creating public-private-partnerships.

TRANSFORMATION

An extensive transformation programme was developed and is being aggressively implemented. The following was achieved in this regard:

* The implementation of the ABET programme continued unabated;
* Specific targeting of women, youth, the disabled and previously disadvantaged persons in allocating contracts was intensified;
* The race profile at management level has been changed and now stands at 63% black. The challenge is now to address the gender imbalance at this level;
* The bursary scheme has been geared towards the skills most required by the Department both internally and externally. We continue to support 400 children in Soweto and Mamelodi to do Maths, Science and English at grade 11 and 12 in collaboration with Star Schools and Wits University.

I am proud to announce that one of our students, Fanie Letsoalo, achieved distinctions in Maths and Science last year and has this year been awarded a bursary by the Department to study engineering.

FRAUD AND CORRUPTION

Honourable Speaker, we are determined to wage an all-out war against corruption in all forms and to instil a culture of clean governance. Two Anti-corruption Units have been established. Also an Efficiency Service Division has been created through which financial control measures are being enforced. We focus on areas where corruption is prevalent such as motor vehicle registration, licensing and vehicle roadworthy certificates. Private and public testing stations will also be investigated to ensure that they adhere to SABS standards and regulations. In instances where we find standards lacking we will not hesitate to suspend and/or withdraw licenses of such testing stations.

TRANSPORT

LAND USE AND TRANSPORT PLANNING

National Government has passed the Development Facilitation Act (DFA) which, through land development objectives (LDO's), intends to ensure co-ordination. From a transport perspective, we can influence and steer the process through focusing on development corridors of which transport forms the backbone and catalyst for densification and growth. In this process the integration of transport plans is a must. Recently, my Department together with the Departments of Agriculture, Conservation, Environment and Land Affairs, Development Planning & Local Government and Housing hosted a successful two-day ITP-LDO Workshop. The prime focus of this initiative is to ensure a seamless integration of Integrated Transport Plans into LDO's and to actually ensure that we do INTEGRATED PLANNING.

The implementation of the National Land Transport Transition Bill (NLTT-Bill) which should be promulgated within 2 months and the Gauteng Framework Act will go a long way towards achieving this integration. These Acts will create Transport Authorities in Gauteng where the integration of transport planning (and operations), within a transport area, can take place.

LEGISLATION

We are in the process of completing the legislative framework for the development of an Integrated Transport Plan (ITP), for the Province. This will be done in close co-operation with all levels of Government and all role players and stakeholders in the Province and will form the basis of all future decisions on transport in the Province. The Gauteng Infrastructure Act and the Gauteng Toll Roads Act have been completed and will be tabled in the Legislature. The Green Paper on a Public Works Policy for the Province is nearing completion.

PUBLIC AND URBAN TRANSPORT

Transport Modal Integration has been and continues to be a focus for the Province and will continue to be a priority for the Department. Our intention is to ensure a healthy and vibrant public transport industry and that all modes are optimally supporting economic activities in our Province. In this regard I wish to refer to the taxi, bus and rail industries:

The Taxi Industry:

In Gauteng the taxi industry transports more than 60% of all daily public transport passengers. Thus our biggest challenge is to bring about sustainable peace, stability and economic growth in the taxi industry.

Taxi Recapitalisation.

This is a joint project between the National Department of Transport, the Departments of Trade and Industry, Mineral and Energy Affairs and Finance. The aim is to revamp the industry through formalisation and legalisation. This project will have a significant impact on the minibus-taxi industry in Gauteng because it aims to replace the ageing minibus-taxi fleet with more modern and efficient vehicles. Operation Vuka, which entails the physical inspection of every single taxi of the approximately 40 000 taxis in Gauteng, is nearing completion. An amount of R70m from National will be made available to appoint, train and deploy an estimated 400 transport inspectors and administrative staff for this very important project. This will include the completion of the registration and inspection of taxis, validation of owners' permits and conversion of radius permits to route permits.

Special measures have been taken to curb violence in the taxi industry by applying measures provided for in the legislation such as closure of taxi ranks and routes as in the case of Soshanguve and the temporary suspension of permits as in the case of the Faraday Taxi Association. (FTA). Also the Commission of Enquiry into perpetrators of violence in the taxi industry in Gauteng has been completed, the report has been released to the public and prosecution of identified individuals is in progress.

Democratisation Process

The democratisation of the mini-bus taxi industry is one of the key elements of government's strategy to develop the taxi industry. This process involves the reconstitution of taxi associations through democratic elections. Taxi associations are then expected to arrange, regulate and organise their affairs in accordance with the provisions of the Standard Minimum Constitution and a Code of Conduct. The aim of this process is to ensure that associations conduct their business in a democratic, peaceful and transparent manner. The democratisation of all taxi associations in the Greater Pretoria Metropolitan Council, Eastern and Western Gauteng Services Councils, The Lekoa-Vaal Metropolitan Council and the Khayalami Metropolitan Council have been completed. The process is currently underway in the Greater Johannesburg Metropolitan Council. Democratic elections for regional taxi councils have been held in the Greater Pretoria region, which culminated in the establishment of the Greater Pretoria Taxi Council. By the end of this week, the Eastern and Western Gauteng Services Councils will have democratically elected Taxi Councils. Comrade Speaker, we are determined that the taxi industry must play its rightful role as one of the most important modes of public transport in Gauteng. Government in co-operation with the taxi industry wants to reclaim this economic giant as a symbol of the resilience, ingenuity and pride of the African spirit. To date out of a total of 192 associations, we have democratised 100 associations in Gauteng.

The Bus Industry:

During 2000/2001 the Department will administer R577m for bus commuter subsidies. This function has been devolved from the National Department of Transport and consists of 15 large interim bus contracts. We have introduced a new model on public transport subsidies through a pilot in Lekoa-Vaal whereby the services of both the bus and taxi industries are combined. Provision has been made for SMME's and joint ventures. The interim bus contract for the south west of Johannesburg has been replaced by six, five-year open market contracts.

This initiative will be implemented during the design and awarding of future contracts in line with the experience gained with the pilot projects. The challenge here is to integrate these contracts into the Integrated Transport Plan.

During 2000/2001 we will ensure that every single bus operating in Gauteng has been registered. This will enable us to closely monitor the condition of the vehicles and the quality of service provided. We are determined to take disciplinary steps against those operators who do not comply with the set standards. Recently, following the horrific accident on the Moloto road, in which 12 people died, we embarked on the retesting for vehicle fitness of all Putco buses. This exercise has revealed the shocking state of some buses travelling on our roads. Based on this preliminary report I have since requested the Gauteng Transport Permit Board to suspend the permit of Putco on this route. In addition we have retested Putco's testing stations via SABS and found them to be unacceptably below standard. Accordingly Putco has been given 14 days to show why we should not suspend or withdraw registrations of these testing stations.

Furthermore, we have announced our intention to retest several buses from Putco and other bus companies across the Province. On Thursday, 18 May 2000 I will indeed be meeting with the Chiefs of Traffic Law Enforcement in the Province to finalise a programme.

The Rail Industry:

The commuter rail function is earmarked for devolvement to the provinces in the near future. In order to facilitate modal integration the Department, local government and the South African Rail Commuter Corporation (SARCC) have formed a joint committee to co-ordinate all planning of rail transport infrastructure in Gauteng. A status quo report showing the condition of rail in Gauteng was completed during 1999. Following on from this a Gauteng Rail Strategy has been developed.

ROAD SAFETY

This remains a daunting challenge for us all. The horrific road fatalities on our roads cannot be allowed to continue. Towards this end we have made a shift in emphasis from being reactive to pro-active, and to allocate resources where they will have the most impact.

The Executive Council has made a special grant of R25m per year, for a three-year period, available to address road safety, overloading control and law enforcement. At this point I wish to thank the MEC for Finance and Economic Affairs, Jabu Moleketi, for his understanding and support. We are in the process of training additional 79 traffic officers; once deployed they will increase the visible policing of our roads by close to 35%. If one takes into consideration that the Department is also in the process of training 400 Transport Inspectors, the number of uniformed personnel on our roads will increase from the present 264 uniformed officers to 743 uniformed officers.

Comrade Speaker, the issue of road safety demands a holistic approach. Such an approach will be adopted for traffic management. This includes all metropolitan and local authorities in Gauteng and will focus on aspects such as vehicle registration and licensing, drivers' licences, vehicle roadworthiness, integrated and co-ordinated overload control activities and traffic law enforcement in areas where transgressions contribute to the high accident rate. This will be supported by the implementation of the Road Traffic Management Corporation (RTMC) and the Administrative Adjudication of Road Traffic Offences Act (AARTO), which was recently passed by the National Parliament.

In his statement on 8 January 2000, President Thabo Mbeki urged, and I quote: "We must take up the matter of accidents and deaths on our roads. Too many of our people are being maimed and killed as a result of reckless driving by many who use our roads. Clearly, the law will have to be strengthened to deal with the highway killers. Nevertheless, as a movement, we will also have to do our work, throughout the year, to raise the level of consciousness among all road users about the value of human life and our common responsibility to protect life" unquote.

We in Gauteng have embarked on various initiatives and programmes to address road safety through the adoption of the following key priorities:

Pedestrian Management Plan

More than 40% of fatalities on our roads are pedestrians. We are implementing a pedestrian management plan to reduce and address this problem. We have committed ourselves to invest on a Rand-for-Rand basis with local authorities to contribute toward the provisioning of pedestrian facilities in these areas and to address the communication strategy to inform pedestrians on the dangers of drinking and walking along main roads - especially during night time.

Overload Control

The control of overloading is now one of the top priorities of my Department. We have embarked on an ongoing campaign called Operation Boima to ensure that minimal damage is caused to our road network and that the safety hazard of overloaded vehicles is minimised. This will result in lower maintenance costs, lower road-user costs and fewer accidents. In this way more resources will be released to address other critical needs of our province.

Arrive Alive Programme

The Department, together with all the local authorities in Gauteng and other provincial departments including the Defence Force have worked very closely over the Easter Weekend to ensure road discipline. Indeed we in this Province are determined to rid our roads of "mobile coffins", whether big or small.

INFRASTRUCTURE DEVELOPMENT

Infrastructure in all its forms, is a catalyst for human development. Well-planned and managed infrastructure can enhance efficiency and effectiveness of the economy. Thus, in 2000/2001 we will continue to invest in infrastructure to eliminate service backlogs in under-serviced areas, especially the black townships and rural areas, in order to meet our people's basic needs. Expenditure on outputs under the Transport Infrastructure programme for this financial year is budgeted at R385.380m. The flagship road construction projects for 2000/2001 include:

* Upgrading and rehabilitation of section of Moloto Road, road 1386, to the tune of R35m;
* Doubling of K15, linking Protea Glen and Lenasia;
* Upgrading of Bon Accord road K97 (North of Pretoria);
* Doubling of existing road K45 near Evaton;
* Construction of new road K102 to improve accessibility into Soweto;
* Taxi transfer facility on K105 at Oakmoor Station (Tembisa); and
* Doubling of K109 and access roads between Dalpark and Kwatsadusa.

An additional R174,370m will be spent on road maintenance and rehabilitation, to prevent further deterioration of the existing major road network.

We have also developed a subsidy strategy for co-funding a North-South and an East-West main road through disadvantaged townships in Gauteng. This subsidy scheme is specifically tailored to address the poorest of the poor. Implementation will commence during the 2000/20001 financial year. This is a joint venture with local government based on a Rand-for-Rand contribution towards the cost of projects. This will enable the local authority to spend more money on the other roads in these disadvantaged areas.

STRATEGIC ECONOMIC INFRASTRUCTURE INVESTMENT PROGRAMME

The Gauteng Spatial Development Initiative (SDI) is ten economic investment projects of the Provincial Government of Gauteng in collaboration with other government departments, as well as local government. The Department will play an integral part in the implementation of these projects. During this financial year the Department will spend an estimated R140m of the total R200m budgeted for the SDI projects.

PUBLIC PRIVATE PARTNERSHIPS

Comrade Speaker, in order to achieve more with the limited resources available to the Department, this process is essential. We will actively pursue and implement this approach during the 2000/2001 financial year. Concrete examples of this approach are the Toll Road Strategy and the financing of the higher speed rail link.

Toll Road Strategy

The Toll Road Act, once approved by the Legislature, would underpin the strategy of the Province designed to evenly distribute the flow of freeway traffic within the Province in order to ensure mobility that will sustain economic activity. This strategy will result in the construction of approximately 450 km of new tolled freeways at a total cost of R7,5 billion over the next 20 years. It will be financed through eight Build-Operate and Transfer (BOT) contracts. The corridor between Johannesburg and Pretoria has been identified as the first viable project and the Environmental Impact Study (EIA) on the planned PWV9 freeway will be completed during 2000/2001. This will in turn free departmental funds for addressing accessibility to and maintenance of the existing road network.

SHARED SERVICE CENTRE

Following the Cabinet's decision that line Departments should focus on core competencies and responsibilities, we will outsource non-core functions in terms of the public-private partnership concept and actively support and promote the concept of a shared service centre for Gauteng, as announced by the MEC for Finance and Economic Affairs, Jabu Moleketi, in his budget speech in February 2000.

TOP MANAGEMENT RESTRUCTURING

The new organisational structure with more management posts, has been approved for the Department. These posts, as well as the management posts that have become vacant as a result of voluntary severance packages and resignations have been advertised. All successful applicants were recently appointed.

CONCLUSION

Honourable Speaker, I want to give this House my personal commitment that this budget will be spent properly and within the prescribed guidelines, that this budget will be used efficiently and effectively to transform society with a focus on the poorest of the poor. Corruption, fraud and abuse of resources will be dealt with decisively. We have created a Fraud Awareness and Anti-Corruption Unit to identify, investigate and prosecute those involved in fraud and corruption. We are committed to clean administration and good governance.

Comrade Speaker, I would like to take this opportunity to thank my personal staff and the staff of the Department, under the capable leadership of the Head of Department, Mr Jack van der Merwe, for their hard work. They have contributed their skills and knowledge with enthusiasm and commitment, and I very much appreciate their efforts. I realise the immense responsibility that has been entrusted to me. However, I am confident that with the expertise and diligence of the management and staff of the Department, I will justify the ANC's confidence and trust in my ability, leadership and dedication to do the job.

I must also express my gratitude to my wife, my children and friends who have stood by my side during this past year. Your support and understanding are invaluable. Finally, I wish to thank our Premier Comrade Mbhazima Shilowa for his confidence in me, and his strategic support and leadership. Many thanks to my colleagues in the Executive Council and the Portfolio Committee for your support and encouragement on the bold steps we have taken to stabilise the minibus taxi industry and to reduce the high rate of deaths on our roads. Comrades, as a humble servant of the people, today, I reaffirm my pledge to work tirelessly, honestly and conscientiously in pursuit of our collective dream - A BETTER LIFE FOR ALL.

I thank you.

Issued by the Office of the MEC for Transport and Public Works