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Mr Speaker,
Honourable Members of the Legislature,
Ladies and Gentlemen.

The budget speech presented today is the culmination of very hard work done by several people, most notably the officials of the Department.

The budget speech delivered here in the Legislature today gives an idea of how funds will be spent in the coming financial year, and it also gives all the interested parties a clear overview of the nature of our expenditure, what has been achieved with limited resources and what the strategies are for the way ahead.

Alhoewel ek nie deel gehad het aan die aanvanklike begrotingsproses nie, was ek gelukkig om genoeg tyd te hê om 'n konsultasieproses met diensverskaffers wat 'n belang het by die allokasie van die fondse te bewerkstellig. Ek kon myself ook vergewis van die prioriteite, sowel as die erns van die uitdagings wat die Departement en ander diensverskaffers in die gesig staar. Sodoende is daar ook 'n positiewe klimaat geskep vir toekomstige werksverhoudings met diensverskaffers en ek beplan om binnekort verdere konsultasie-sessies met alle diensverskaffers in die Provinsie te reël.

Lys van besoeke sedert 19 Desember 2000

Datum -Plek -Beskrywing

10/01/2001 -Du Noon - Atlantis
25/01/2001 -Kibbutz El Shamma - Worcester
14/02/2001 -Die Ark, Faure -"Centre for Refuge"
19/02/2001 -Distrikskantoor - George
19/02/2001 Thembalethu Kleinboere Vereniging - George Projek
19/02/2001 -Masizakhe Diens Sentrum - George Senior Burgers
19/02/2001 -Nomzame Créche - George Créche
19/02/2001 -Emmaus House for Disabled - George Huis vir Gestremdes
19/02/2001 -Moria Protective Workshop - George Werkswinkel vir Gestremdes
19/02/2001 -CEF en Sorgen Haven - Mosselbay NGO en Sentrum vir Mishandelde Vroue
20/02/2001 -Siphatisiswe Créche - Mosselbay Créche
20/02/2001 -Nomsamo Créche - Mosselbay Créche
20/02/2001 -Masincedisane Créche - Mosselbay Créche
20/02/2001 -Jagersbosch/Melkhoutfontein Diens Sentrum - Stilbaai Diens Sentrum en Projek
15/01/2001 -Atlantis Radio Stasie
01/03/2001 -Kayalitsha Entrepreneurs -Moontlike Projek
07/03/2001 -Khayalitsha Resource Centre -All Pay punt
12/03/2001 -Chrysalis Project/Projek
16/03/2001 -Eersterivier Interkerklikre Vroue aksie Projek

In as far as it concerns the budget, an amount of R2,342 624 billion was allocated to the Department for the 2001/02 financial year. In comparison with the previous financial year (2000/01) it represents an increase of only 3,03% or 68 803 million.

Transfer payments, i.e. money paid in respect of pensions and grants, as well as subsidies paid to service providers in the welfare and NGO sector, consumes by far the largest amount of our budget which is 88, 96%.

Subsidies paid to service providers can be broken down as follows:

Project -No Of Persons -Budget for 2001/2002

Children's Homes - 43 2655 - R28 864 million
ECD Facilities - 632 47 566 - R30 017 million
After-school Centres - 47 2 172 - R0,880 million
Homes for the Aged - 139 10 923 - R76 812 million
Service Centres - 157 12 574 - R10 984 million
Homes for Disabled Persons - 35 1 276 - R17 640 million
Protective workshops - 41 2 082 - R4 197 million
Treatment Centres (4) - R3 138 million
Comm Centres - 18 - R0,330 million
Children Shelters - 16 481 - R2 673 million
Women Shelters - 8 235 - R1 118 million
Adult Shelters - 15 813 - R2 159 million
Social Service Organisations - 180 - R50 266 million
TOTAL - 1 333 - R229 078 million

This excludes the poverty projects.

Compared to this, only 11,04% is spent on own services. From these figures, one can therefore safely deduce that the resources of this Department are limited and that it is difficult to make changes to meet its own service delivery priorities.

Die Wes-Kaap mag 'n "ryk" provinsie wees, maar sy rykdom is oneweredig verdeel tussen die verskillende bevolkingsgroepe in die Provinsie. Volgens die Sensus-opname van 1996 verdien minder as 50% van die swart-huishoudings 'n jaarlikse inkomste van ongeveer R12 000-00 , terwyl meer as 50% van die wit-huishoudings 'n jaarlikse inkomste verdien van ongeveer R54 000-00.Meer as 85% van die swart-huishoudings verdien minder as die 25% van die armste wit-huishoudings. In die Wes-Kaap verdien 41,5% van die huishoudings minder as R1500-00 per maand oftewel R18 000-00 per jaar.

Maatskaplike Dienste en Armoedebestryding is beslis een van die primêre fokus areas van hierdie regering. Nie net is dit een van die grootste begrotingsposte as dit by die bedrag ter sprake kom nie, (18,97% van die totale provinsiale begroting) maar wanneer daar na die 10 beleidsdoelwitte van die provinsiale regering gekyk word, is dit duidelik dat vooruitgang met die lewering van maatskaplike dienste, definitief positief sal manifesteer op al die prioriteite.

As far as social services are concerned, assisting communities and individuals will create a safer environment for all the people. If people can be empowered and become self reliant, their chances of becoming economically active and self-sustainable is much better. Their responsibility levels towards HIV/AIDS will be increased.

Improved social service delivery and the consequent empowerment of the community generates a whole chain of events, which impacts on improved living conditions in general. The same argument holds for poverty alleviation. Any progress in this area will have a similar effect on our province as a whole.

To help realize the Department's vision of a self-reliant society, it underwent a rigorous restructuring process which has created greater synergy between the directorates and also a more integrated approach to service delivery to the benefit of recipients. The Department has a total staff complement of 1565 which is broken down as follows:

Head Office: 205
District Offices: 859
Institution: 501
Total: 1565

The core business of the Department, as illustrated by the different directorates, can be summarised as follows:

* The Chief Directorate Finance and Administration is headed by Mr. Juan Smith who is responsible for managing the financial and human resources of the Department and ensuring adherence to the requirements of the PFMA. He is assisted by Mr. Wessie v/d Westhuizen, Director of Finance and Ms Bernadette Arries, Director of Human Resources and Administration.

* The Chief Directorate Social Service Delivery is headed by Dr. Waldi Terblanche, assisted by four Directors.

* The Directorate Research and Development's core business is to manage effective social research, population development and strategic planning. By providing baseline data, it contributes to sound decision-making in relation to the design and implementation of policies and programmes, as well as the Department's strategic direction. This Directorate is headed by Mr. Gavin Miller and together with the Chief Directorate Finance and Administration, performs a critically important support function for the Department.

* On the service delivery side, the directorate Developmental Social Service Delivery is headed by Ms Sharon Follentine and is responsible for the development and management of an appropriate, effective Social Welfare Service Delivery System and Poverty Reduction Programme in partnership with service providers across the service delivery spectrum.

* The Directorate Social Security which is headed by Mr. Henry de Grass has as its primary purpose, the efficient administration of Social Security in terms of the relevant legislation and in this respect performs a far-reaching safety net function. Social grants are paid to 336 462 beneficiaries to the amount of R150 million per month in the province which, constitutes approximately 9% of the population and almost 9 000 new applications are processed on a monthly basis.

* Finally, this Department places a very high premium on monitoring standards of service delivery in accordance with the Batho Pelo principle and the Public Finance Management Act. Accordingly, the Directorate Customer Services headed by Mr. M. Malaka has the responsibility of overseeing the delivery of comprehensive, appropriate and affordable customer service.

Na aanleiding van hierdie kernfunksies, Meneer die Speaker, wil ek graag 'n paar hoogtepunte uitlig met betrekking tot die verskillende afdelings of programme van die departement se werksaamhede.

Despite the fact that the past year has been an extremely trying one for the Department, it has had to cope with moving offices from rented premises to state owned premises to be more cost effective, implementing an organisational restructuring process and dealing with several changes in political leadership. The following is a testimony to their sound management practices and unquestionable commitment to service delivery, that they can also boast a remarkable number of achievements:

* Multi-Purpose Centres were established in Van Rhynsdorp at the costs of R2,66 million, at Waboomskraal in partnership with the Japanese Government who contributed R620 000 toward the cost of the building and in Langa in partnership with the Department of Cultural Affairs who contributed R1,65 million toward the cost of the building. These facilities provide the communities concerned with an asset that forms the hub of accessible and integrated service delivery and because it crosses racial divides; it also plays a role in reconciliation.

* Horizon Youth Centre, a secure care facility for youth in conflict with the law was established for 60 children under the age of 18 years, but had to rapidly increase it's uptake to accommodate a 160 children because of the large number of children in prison. The facility was built at a cost of R14 million and its operating costs - as it is outsourced- is R9,3 million per annum which is cheaper than a state run facility of the same size.

* Reaching and improving on the national target of 51 750 children for the Child Support Grant and by the end of March this year we will have exceeded the target amount. Currently the grant is R100-00 per child per month for children up to the age of 7 years. This will increase to R110-00 per child per month from 1 July 2001.The total budget for Child Support Grant is R75 276 million.

* Implementation of a computerised payout system (ALLPAY) for 285 000 beneficiaries. Approximately R151 million is paid out per month at 296 pay-points throughout the Province.

Completion of the re-registration project for 330 000 beneficiaries in order to:

* Update the database of the Social Pension System with the correct and accurate data of all beneficiaries in the Western Cape - Ensure that fraud is addressed and eliminated - Ensure that all beneficiaries are correctly evaluated in terms of the Social Assistance Act, Act 59 of 1992 - ensure that all beneficiaries of disability grants are medically correctly evaluated and ensure that beneficiaries are in possession of a bar-coded identity document.

* Increased accessibility of services through the establishment of the Eerste River District Office.

Daar is ongelooflik baie wat gedoen word om die visie en missie van die Departement te bereik, maar die bronne waarmee dit gedoen moet word, bly altyd beperk.' n Verhoging van 3,03% op die begroting bied weining geleentheid vir uitbreiding van dienste in ag geneem dat hierdie verhoging ook aangewend moet word vir die verhoging in maatskaplike toelaes.

Die feit dat hierdie Provinsie ook dienste moet lewer aan persone wat vanuit ander provinsies hierheen stroom as gevolg van die persepsie dat hierdie provinsie meer welvarend is, terwyl die basis waarop die begrotingstoekenning aan provinsies gedoen word onveranderd bly, plaas geweldige druk op die reeds beperkte finansiële bronne.

People move to the Western Cape, because the infra-structure is better, learners here have a better chance of passing, the health services here are of a higher standard and when you apply or register for a government grant your changes of receiving it while you are still alive is much better. The 35 working days that it takes my Department to process an application must surely be a record in terms of South African standards. Indeed, it is something this Province can be proud of.

But Mr. Speaker, ladies and gentlemen, the most important matter today is surely how the Department intends managing its financial allocation for 2001/02.

In this regard, I wish to briefly highlight the following:

HIV/AIDS

This is one of the biggest challenges yet to face this department because it hits at the heart of the economically active population and has the potential to change the family structure, as we know it. My Department is responsible for services to children infected and affected by HIV/AIDS.

In consultation with the Department of Health and the Office of the Premier, we are finalising the awarding of a tender to a leading consultant in the field of HIV/AIDS, to make forecasts on the possible impact of HIV/AIDS on the population of the Western Cape Province. The forecast will amongst others, position the Department to gain data on how HIV/AIDS can possibly impact on the different age groups in the province.

Of particular importance in this instance, is the projected number of orphaned children and children infected and affected by HIV/AIDS. These forecasts will enable the Department to strategise on the possible impact on social security benefits as well as further guiding the design of a policy response on the issue of HIV/AIDS.

In addition the Department will, through a conditional grant of R1 million received from the National Department of Social Development, focus its energies on developing and supporting community-based care options for children infected and affected by HIV/AIDS.

SUPPORT TO SERVICE PROVIDERS

After 6 years of sustaining financial allocations to service providers, the Department will finally be in the position to increase subsidies to three critical areas of service delivery namely:

Children's homes, where the unit costs will increase from R785-00 to R1000-00 per child per month - Old age homes, where category 3 services will now be financed on national scales; and welfare organisations, where salaries of social workers will be increased.

This is in part to recognise the sterling work delivered by our partners and to guard against the situation where organisations close down because of the Department's inability to increase its financial allocation to them.

Our aim is to strengthen our partners in the welfare and NGO sector, rather than to decimate them as they are critical to service delivery on the ground. In this respect, I believe it is also timely to announce that on 11 May 2001 the ABSA Foundation will be hosting a corporate breakfast for me. This will provide me with a platform to link the needs of our service providers with available resources and in so doing, support and add value to the wonderful work done by our service delivery partners.

Staatsonderhoudstoelae Mnr die Speaker, die ekonomiese skok van die besluit dat die staatsonderhoudstoelaes aan enkelouers van kinders onder die ouderdom van 18 jaar oor 'n tydperk van drie jaar uitgefaseer moet word, sal arm families en hul afhanklikes nog dieper in armoede dompel.

Aan die begin van die uitfaseringsproses was daar 72 000 begunstigdes, en teen die einde van Maart 2001 wanneer hierdie toelae beëindig word, sal die sowat 40 000 oorblywende begunstigdes vir die laaste keer hierdie toelaes ontvang.

Ondervinding het bewys dat hierdie stand van sake aanleiding kan gee tot verskeie ander sosio-ekonomiese probleme wat die provinsie sal moet oplos.

Uit 'n ekonomiese oogpunt sal dit 'n verlies van R101 miljoen aan inkomste beteken wat persone gedurende die huidige boekjaar wel gehad het.

Navorsing het ook bewys dat vir kleiner gemeenskappe, veral landelike gemeenskappe, is hierdie bron van inkomste die ekonomiese ruggraat van die gemeenskap en die verlies daarvan sal verreikende gevolge inhou. Die Departement is tans besig met die ontwikkeling van verskeie veiligheidsnet-programme om die las van hierdie betrokkenes te verlig. Die doel van die programme is tweeledig van aard naamlik:

* Om persone te bemagting deur middel van vaardigheidsopleiding vir deelname in inkomste-genererende aktiwiteite met die klem op uitbreiding van gemeenskaps-gebaseerde dienslewering
* Werkskepping, veral met die klem op entrepreneurskap binne die raamwerk van plaaslike ekonomiese ontwikkeling om sodoende selfonderhoudend te wees.

Die finansiering vir hierdie veiligheidsnet-programme kom van die Nasionale Departement van Maatskaplike Ontwikkeling (R7,8 miljoen) asook hierdie Departement se eie begroting (R11,2 miljoen).

Laasgenoemde behoort u in geen twyfel te laat oor die belangrikheid van hierdie program vir die Departement sowel as die Provinsie nie.

Of course the exact impact will only really be felt when the reality sinks in after the end of March when the remaining 40 000 beneficiaries will no longer receive grants and it is entirely possible that considerably more people than the 3000 who have currently registered for participation in the Department's programmes, will want to be included. We have braced ourselves for this possibility and are prepared for any eventuality.

In so far as it concerns other grant types, the emphasis will be on the establishment of medical evaluation panels throughout the Province to handle all medical appeals in respect of disability grants, as well as increasing the take-up rate for the Child Support Grant to 74 970 children by the end of March 2002 in line with the national targets set for this Province.

CARE AND PROTECTION OF CHILDREN

The Department has made significant progress in this regard, and in the coming financial year will concentrate its energies on sustaining the progress as well as:

Starting the process of establishing a Children's Legislature will give children a voice and provide them with the opportunity to participate in their own affairs. This will be a first for our country and as far as we know there is only one other Children's Legislature in the world i.e. in Paris, France.

Implementing 2 pilot programmes which aim to:

* Increase the financial and administrative capacity of staff and management of at least 50% of the 632 crèches subsidies by the Department and test a comprehensive approach to Early Childhood Development service provision, which includes home-based care;
* Establish a rural secure care facility for 25 children and youth in conflict with the law; and
* Work closely with the Cape Town Partnership and the Local Authorities to strengthen efforts aimed at alternative care for street children, especially in the central business district. Recently there has been much talk of a kibbutz type facility for street children.

It is my intention to host a round table discussion on the merits of service provision underpinned by a kibbutz type philosophy before we hurdle headlong into something about which we know very little. In addition, our efforts to strengthen families will be intensified, although it will have to be recognised that there is a causal relationship between children on the street and poverty and only if the latter is effectively tackled, will we show real gains in respect of street children who are the visible manifestation of poverty and family dysfunction.

Another excellent project which has been initiated is the database to track the movement of children's into, within or from our system. This will ensure that we do not "lose" children. It will also for the first time place my Department in a position where at the press of a button, it can provide one with the numbers and status of all children in this Province, who have entered our system. It will furthermore facilitate planning and targeting of interventions.

IMPROVED CUSTOMER SERVICES

The primary motivation for the restructuring of the Department and the establishment of a Customer Services Directorate was to give practical expression to the Batho Pele principle and as a by-product, to further enhance the image of the Department. The focus of attention will be:

* To increase accessibility of services through the establishment of two additional District Offices, one of which will be in Gugulethu and the other in Caledon;
* To improve efficacy and quality of services through the implementation of developmental quality assurance and monitoring of service delivery standards; and
* To computerise the Department's registries (more than 330 000 files), which will further enhance services to customers as it will mean that enquiries can be dealt with immediately and most importantly, it will guard against the "lost file" syndrome.

I am also proud to announce that the Department has been able to significantly improve its racial and gender composition in line with its Employment Equity Plan. An example of this can be seen in the composition of its top and middle management structure, where the former is on target, and significant progress has been made with middle management.

Recently posts were advertised, through the filling of the posts we will also adhere to the transformation 2000 principles. I will personally wish to know from the personnel department what progress we are making in this regard.

Mr Speaker, ladies and gentlemen, there are certain service delivery principles which this Office and Department regard as non negotiable.

All our poverty alleviation and social service delivery efforts must be aimed at adding value and promoting sustainability and self-reliance to community initiatives. This means that whilst being sensitive to past inequalities, we must also create an enabling environment for service delivery to occur. In this respect, the capacity building programmes to be undertaken by the Department will go some way towards redress.

In conclusion, Mr Speaker, ladies and gentlemen, the MEC's Office and the Department together form a formidable and indivisible team which is vision-driven, goal and success orientated and totally committed to service delivery of the highest standard. We believe that our record speaks for itself and for this I want to commend and thank the Head of Department, Ms Virginia Petersen and her team. I am proud to be associated with a Department of this calibre.

I thank you.

Contact: Derick de Villiers on 021 483 5457/ 083 556 6165

Issued by: Office of the MEC for Social Services and Poverty Relief, Western Cape, 22 March 2001