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Honourable Speaker
Comrade Premier
Honourable Members of the House
Esteemed Guests
Comrades, Colleagues and Friends

It is a great honour for me to stand before you today to present for the second time the Budget Vote Speech for the Department of Public Transport, Roads and Works.

During the past year, the Department has made great strides in the implementation of programmes and projects whose aim is to accelerate economic growth and development and poverty eradication. The significant achievements attained, be it in the taxi industry, the bus industry, public works programmes, anti corruption campaigns and road safety awareness among other things, clearly indicate that there is a willingness and a commitment among the broad public to work towards building a caring society and a better South Africa.

Honourable Speaker, today I am more convinced than ever before that - barring a few dissenting voices - we are travelling a difficult but rewarding terrain that cannot but lead us away from the bitter past of abject poverty and degradation. President Mbeki in his State of the Nation address in February this year stressed that South Africa is a land of hope because of all the people, black and white who are actively contributing to move our country further away from its painful past. It will not be an exaggeration to say that Gauteng, as the economic powerhouse of this country, indeed of this majestic continent is the nucleus of that ray of hope that signals a brighter future for all!

Comrade Speaker, allow me at this point to salute the community forums and organisations, the taxi associations and councils, the traffic fraternity, the bus and transport industry, government officials, the ordinary women and men who have and continue to contribute in their different ways and means towards our common goal - that of building a stable and strong economy for poverty eradication and sustainable development. True achievement, we believe is the result of thousands of everyday efforts.

STRATEGIC VISION

In the context of both National and Provincial strategic direction we set ourselves to achieve the following:

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

Comrade Premier, we are aware of the growing needs of our society in the midst of limited resources. We are committed to explore several ways and means of generating income while efficiently and innovatively utilising the resources at our disposal.

The following submission will, largely, demonstrate our endeavour to continue to deliver on our promises i.e. provision of quality products with limited resources. Employment creation to improve the quality of life of all citizens of Gauteng is our vision.

COMMUNITY-BASED PUBLIC WORKS PROGRAMME (CBPWP)

This continues to be a special flagship programme of this department that focuses on involving the communities in their development.

In addition to 100 projects (School classrooms, libraries, multi purpose centres, community halls, creches, homes for the disabled etc), that have been completed to date under this programme eighteen (18) projects were implemented, resulting in 821 short-term jobs being created. The participation of women in these projects was increased to 35%. We further implemented projects of road infrastructure and clinics.

In line with the vision of Government, the department is refining the programme to make it a vehicle for job creation in a variety of infrastructure development projects including road construction and maintenance where it is deemed feasible. The ultimate aim is to increase the labour content of our programmes significantly.

HOSTELS

The four (4) hostels under the management of this Department continue to pose a particular problem to the department due to overcrowding, non-payment of rent and lack of funds to sustain them. The Department has developed and implemented a short-term to medium term strategy to deal with the problems. A long-term strategy is currently being consulted with all stakeholders.

HIV/AIDS

The department is far advanced in the development and implementation of the HIV/AIDS policy and strategy. In line with the Government's vision on dealing with the epidemic, the Department developed a comprehensive HIV/AIDS in the workplace programme, which is currently being consulted upon.

TRAINING AND DEVELOPMENT

The Department, like all technical departments is challenged by the shortage of skills in professional fields especially of the historically disadvantaged persons. To deal with this problem, the department sponsored four hundred (400) students for additional assistance in Maths and Science through the Star School programme. We are pleased to announce that this programme has produced the desired results for the Department in that three (3) of the ten (10) top Gauteng students in Maths and Science were on our programme. The Department was able to provide 32 scholarships to these students at tertiary level. We are also proud to announce that the Department has extended the programme to Springs and Vaal in order to cover the four corners of the province. The total number of participants in the programme is now 800 students.

MAINTENANCE AND REHABILITATION OF INFRASTRUCTURE

The Department has continued to support line Departments especially Health in the reduction of maintenance and capital works backlogs. The Department has assisted in the acquisition and population of the Premis system to enhance asset management as well as the updating process of the Hospital audit to ensure the provision of relevant and greatly needed infrastructure in the Province. The system (Premis) will also serve as a supporting mechanism in the ongoing reviewal of policies relating to official housing under the jurisdiction of this department.

SMALL AND EMERGING CONTRACTOR DEVELOPMENT PROGRAMME

Honourable Speaker, our Premier, Comrade Mbhazima Shilowa in his opening speech noted the need to establish an economic portal for SMEs, which will provide services to SMEs to help them achieve growth through support, information provision and mentorship. The Department initiated this flagship programme during the 1997/1998 financial year. It is aimed at creating an environment that offers procurement opportunities for small and emerging contractors, and has been running for almost three (3) years. This is a stepping-stone to entering the competitive open-market construction industry in the province.

Also in line with the Cabinet Lekgotla decision of June 2000, the Department has gone ahead with the preparation of the establishment of small business units in the maintenance section of the Department. The process seeks to realign all the maintenance units into internal business units that operate on service-for-fee basis. This will lead to improved and efficient service delivery in the Department.

ASSET MAINTENANCE MANAGEMENT SYSTEM

The Department has developed an Asset Maintenance Management Framework which will be used in conjunction with the Gauteng Facilities Management System (GFMS) to improve maintenance data collection resulting in informed decision-making, effective planning, objective prioritisation of maintenance and efficient implementation of maintenance works.

CAPITAL EXPENDITURE PROJECTS (CAPEX)

For the past three (3) financial years, the Department has been managing the CAPEX projects for the province. This entails CAPEX expenditure in excess of R1, 0 billion per year. The allocated budget has been spent within 1-2 percent each year. The Department has appointed a Provincial CAPEX Manager and installed an Expenditure Management System (EMS) to track the progress of more than 500 CAPEX projects in the Province. Plans are underway to reorientate applicable Capex projects towards labour intensive methods to address job creation. We are on the verge of identifying and acting on such projects.

COMBATING FRAUD AND CORRUPTION

Honourable Speaker, in my submission to this House last year, I reported that the Department had embarked on a serious drive towards eliminating all forms of criminal activities in our operations. I am proud, Sir, to mention that our efforts continue to produce positive results. In this regard, in partnership with the Department of Safety and Liaison, Justice Department and Business Against Crime we have made in-roads in many areas thus unearthing and exposing serious criminal activities. These activities, Mr Speaker, have been widely reported in the media.

One of the initiatives that I am pleased to announce to this House today and to talk about is the project to provide managerial and supervisory support to the licensing departments in the city of Johannesburg in particular and to other licensing departments throughout the province. A total of R10 million has been allocated to bring all registering authorities in Gauteng under desirable managerial and supervisory control, to provide best practice for service efficiency, customer satisfaction and income maximisation for the province. We have also allocated an amount of R1,1 million to install queuing management systems in licensing departments. Initially, a total of 70 workstations with this system are planned for Johannesburg, Pretoria and Germiston. Forty (40) more will be considered for other licensing departments before the end of this financial year.

As far as the deposit of revenue collected by local authorities on behalf of the province is concerned, I am happy to announce that the newly constituted districts of Sedibeng and Randfontein have committed themselves to commence payments of current accounts and within two months commence payments of arrears.

At this point, I would like to congratulate and thank Business Against Crime (BAC) for their co-operation and commitment to eradicate crime and corruption in the province. More detail to follow in joint press briefings with my colleagues in Council.

We have also taken the decision to de-register any institution found performing fraudulent transactions. We intend to blacklist such institutions throughout the province. At present 22 (21 in Johannesburg and 1 in Brakpan) NaTIS operators are barred from working on the NaTIS system.

In the spirit of co-operative governance, Mr Speaker, the Department has been working in partnership with SAPS, SABS, NDoT, Business Against Crime and other provinces on solutions around licensing induced or promoted vehicle crime. A conference was also held on 20 February 2001 at CSIR, and a successful workshop with SAPS, Justice Department and Local Authorities was convened on the 14 May 2001 in this regard. The results and recommendations of both these two events have resounding support from all participants and will go a long way in having a holistic approach to dealing with these sorts of crime.

INTERNAL FRAUD INVESTIGATIONS

The Department has also taken decisive action to investigate allegations of fraud, misuse of vehicles, unfair distribution of work at the Government Garages and general misuse of government equipment and property as well as mismanagement. Consultants were appointed late last year to conduct the investigations.

Specific actions have been taken including suspension of some officials as a result of the investigations. It is anticipated that this will serve as a deterrent to many while saving government large amounts of money.

I must point out that the Department, in co-operation with the petrol card institution has taken drastic measures towards investigating and implementing a strategy to allocate and spread the repair and maintenance work on GG vehicles to more merchants than has been the case before. This operation is focusing primarily on the allocation of work to historically disadvantaged merchants in pursuance of Black Economic Empowerment.

The overall restructuring of the Government Garages' operations to achieve efficiency is underway. We believe that this initiative will bring about stability and indeed improve financial management particularly with regard to the management of the trading account, which is always one of the concerns of the Auditor-Generals Office.

DEMOCRATISATION OF THE TAXI INDUSTRY

Honourable Speaker, I am pleased to announce that significant progress has been made in this sector. For that I would like to congratulate the industry for its unwavering and timely support.

Democratic elections were held for all 206 taxi associations followed by democratic elections of the taxi councils for the five (5) regions in Gauteng, culminating in a full democratic election of a Provincial Taxi Council. The Gauteng model has been adopted for the whole country, and the department's task team has been requested to assist with the roll-out of the process in the other provinces. The end goal is to elect a Democratic National Taxi Council by the end of July 2001.

Following the launch of the "Be Legal Campaign" (BLC) nationally, Gauteng has subsequently launched her provincial campaign to sensitise all illegal operators to make use of this last window of opportunity.

The aim of the campaign is to capture, on our data base system, all the taxis that are operating illegally but meeting specific requirements of the law. Again Mr Speaker, we hope that this process will result in lasting peace in the taxi industry while moving the industry towards genuine economic venture through the recapitalisation programme.

BUS SUBSIDIES

The Department has successfully administered subsidised bus contracts to the value of R577 million last year. This year the amount is R625 million. These funds are transferred from the National Department of Transport. Fifteen interim contracts, based on life long concessions awarded by the previous government, form the bulk of these contracts.

The Department is in the process of re-designing these contracts for open tenders with the ultimate aim of:

* Ensuring modal integration.
* Enabling the participation of SMEs and the Historically Disadvantaged Individuals (HDI's) thus promoting Black Economic Empowerment in the process.
* Increasing competition in the industry;
* Eliminating duplication and inefficiencies in the system

Three of the fifteen contracts have already been re-designed and put out to open tender. The Department continues to monitor progress in this regard particularly the involvement of HDI's in the process within the existing parameters of the tripartite agreement between Government, Labour and Bus Industry of 1999.

Mr Speaker, I have alluded to the fact that specific measures are being taken to ensure that HDI's participate meaningfully in the bus industry, it is however with great regret to have to announce in this house that our only first and biggest approach in this endeavour has suffered serious setbacks resulting in government reluctantly cancelling the contract of such a company by the name of SOWESTO. This matter was also widely dealt with in the media.

Mr Speaker, this was a pilot project and we have learnt lessons in this regard and determined to seriously examine all Black Economic Empowerment ventures submitted to us to eliminate any reason for such failures in future.

As part of the rescue operation, which is in accordance with the terms and conditions of the contract, the Department could only negotiate, the taking over, by new operators, of seventy (70) drivers of SOWESTO while the rest of the work force could not be absorbed. We are in the process of investigating possible interventions in this regard.

LEARNER TRANSPORT

This has been one of the neglected transport areas in our country for many decades. We have identified the need to do something about it and have launched a process to identify all the role players, the needs and the problems, with a view to formalise policies, develop strategies and implement action plans.

A large portion of the daily trips on the transport network, are undertaken by learners, students or parents taking learners to school. A recent greater Pretoria household survey indicated that nearly 50 percent of all person-trips generated per household are education related. Transport for learners is thus a very important part of the total transport service and must receive proper attention.

Both this department and the Department of Education have embarked on a process of developing a joint provincial strategy in this regard. The information gathered at the September 2000 Provincial Conference on Scholar Transport will help in shaping our programme.

PUBLIC PRIVATE PARTNERSHIP (PPP) PROJECTS

Mr Speaker, Honourable Premier, this House will recall that last year we spoke about the importance of developing public private partnerships as one of the mechanisms of improving service delivery. This drive is continuing at a reasonable pace. I can inform this house that:

* The sale and marketing of personalised number plates were awarded to a private contractor. The income from this is ± R1.0 million per month.
* The rapid rail link project is on course with the appointment of financial consultants now completed. We will be hosting an international investors conference during September this year.
* Planning is underway for other infrastructure related projects particularly around the Johannesburg International Airport, which is part of the SDI programme.

Furthermore, Mr Speaker, I would like this House to know that there is growing interest by the Black Economic Empowerment groups in this project. I have had discussions with such parties who want to know what role they could play directly and supportive to the success of the programme. This indeed is encouraging given the importance of these projects to our economy. Further meetings are to follow.

ROAD SAFETY

Honourable Speaker, this task remains a daunting challenge for us all. As the Premier indicated in his opening speech to this House, that we will be extending the Arrive Alive campaign beyond the festive season to run throughout the year.

I am pleased to inform the House that we succeeded to reduce the rate of fatal road accidents by 18 percent (147 versus 180) for the period December 2000 - January 2001 compared to December 1999 - January 2000. Accident statistics for the Easter Weekend (2001) show a reduction of 38, 5 percent for accidents as compared to that of last year. Of course, one life lost is one life too many. At this point, I would like to repeat the appeal made by the Premier at his opening address that all of us must work hard and together to bring this carnage to an end.

Comrade Speaker, indications are that we are slowly winning this uphill battle against lawlessness on our roads. Thanks to the excellent co-operation between the three spheres of government and other role-players. I would like to express our profound appreciation of the support and commitment displayed by the following stakeholders and role-players namely: the local traffic authorities, the new Metro police, the SAPS, the SANDF, the Judiciary, Fire Brigade, and the Gauteng Ambulance Training College to mention a few.

According to research, the cause of road accidents is human error, vehicle defects and/or unsafe conditions on the road or a combination of these factors. As part of this ongoing attempt to address the horrific road fatalities on our road network, we have embarked on the following initiatives:

* In co-operation with the National Inspectorate of Drivers License Testing Centres and traffic officers from the Provincial Inspectorate, the 32 drivers license testing centres were thoroughly inspected. Seven (7) centres and 15 examiners were suspended and 104 licenses were cancelled;

* A major campaign was undertaken to determine compliance with standards at all 85 testing stations of motor vehicles in Gauteng; This programme will be renewed soon;

* After a major bus accident, involving a bus and a minibus-taxi, a total of 3 600 buses were retested to ensure that they comply with the requirements of the Certificate of Fitness (COF) for public passenger carriers.

* The special grant of R25 million was made available by the Executive Council in the last financial year to address road safety, overloading control and law enforcement. As our Premier has pointed out in his address, the funds were used to appoint and train 151 additional traffic officers. At this point, I wish to reiterate our appreciation of MEC for Finance and Economic Affairs, Comrade Jabu Moleketi's, understanding and support.

* The Pedestrian Management Programme has been successfully implemented in the City of Tshwane Metropolitan Municipality namely in Tsamaya Road in Mamelodi, in Seeiso/Ramakgopa Streets in Attridegeville and in Van der Walt Street in the city centre. The programme is aimed at significantly reducing the prevalence of pedestrian casualties in Gauteng, with the emphasis on certain high priority hazardous locations. Already ten (10) provincial pedestrian hazardous location/routes have been identified. Education, communication, road safety audits and traffic law enforcement actions are undertaken on these routes. 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.

* Overload control. The management of the Overload Control Centre at Heidelberg will be funded and administered jointly by this department and the National Roads Agency Board (SANRAL). The centre will be operational 24 hours per day and enforced by my departmental officers. I am also pleased to point out that the traffic court will also be housed in the Overload Control Centre and the offenders will be brought to book immediately.

* Operation Boima II was launched on 26 February 2001 and an average of 8 000 vehicles per month are being weighed. The top ten (10) offenders have been identified and brought to book and indications are that there is a definite reduction of overloading as a result.

INFRASTRUCTURE DEVELOPMENT

Comrade Speaker, the Premier has emphasised in his opening speech to this House that the greatest weapon against poverty and degradation is a thriving economy, which provides opportunities for poor people to overcome the legacy of the past and improving the quality of life of our people. The maintenance and extension of our road infrastructure is of critical importance to the well being of our economy.

Gauteng is the most urbanised province in South Africa. It has an extensive road network with a total of 4 896 km of declared provincial roads. Maintaining and protecting this infrastructure investment is very important. Currently, there is a rapid deterioration of our road network. In 1985, more than 80 percent of roads were in a good/very good condition. At present, more than 25 percent of roads in Gauteng are classified as being poor/very poor. Approximately 70 percent of all roads are older than 20 years.

Well-planned and managed infrastructure promotes trade and supports economic concentration. Therefore, any development process must entail a commitment to investment in infrastructure. Thus, in 2001/2002 we will spend a budget of R424,8 million on the Transport Infrastructure Programme. Of this amount, R258 million will be spent on road maintenance and rehabilitation and R64 million on construction. The rest goes to design and other overheads.

The flagship construction projects to continue and new projects to start in 2001/2002 are:
* Completion of the upgrading and rehabilitation of the Moloto Road;
* K102 phase 1 (new road and bridge - Dobsonville;
* K102 phase 2 (new road and bridge - Dobsonville);
* K109 Doubling of existing road between Benoni and Tsakane;
* P119-1 Pedestrian bridge to reduce pedestrian accidents; and
* P79-1 Diepkloof access to improve road safety.

* The following flagship maintenance projects and new projects to start in 2001/2002 are:
* P156-1 (Alberton Resurfacing of existing road);
* P5-1 (Benoni Resurfacing of existing road);
* P41-2 Phase 2 (Heidelberg Resurfacing of existing road)
* P36-1 Phase 2 (Pretoria - Babsfontein Rehabilitation);
* P126-1 Phase 1 (Krugersdorp Rehabilitation of existing road);
* P66- 1 Phase 1 (Khayalami Rehabilitation of existing road);
* Rehabilitation of Road P102/1 from Eldoraigne to Monavoni.

TRAFFIC CONGESTION MANAGEMENT

An efficient urban transport system is a key element of a development policy. Together with land use, it determines the efficiency and competitiveness of the Gauteng region. An analysis capacity of the provincial road network indicates that 23 percent of the network experiences severe congestion, which translates into additional costs to the road users, and ultimately detrimentally affects the economy of Gauteng.

As a result of several workshops on congestion, three main streams of activities were identified to deal with the issue and long term as well as short-term actions and implementation projects were identified. From this work, a fully encompassing congestion strategy has been drafted. The three action streams are:

* Land use policies to reduce congestion and promote public transport;
* Implementation of congestion supply side tools; and
* Reducing demand and promoting public transport.

It is also encouraging to note that we will soon be implementing some of the short term anti congestion measures on the major routes around and in between Johannesburg, East Rand and Pretoria.

FINANCIAL MANAGEMENT

Like in all departments, the implementation of the Public Finance Management Act (PFMA) has posed some management challenges to us. The Auditor-General has raised a few systems concerns with the Department, which we hope will be addressed by the appointment of the new Chief Financial Officer (CFO).

The CFO has been given a clear mandate to address as a priority the following: Reconciliation between PERSAL and BAS systems, financial management in the Government Garage, management of official housing and the Standard Stock Account. Short-term strategies as well as long-term strategies have been put in place to address any shortcomings in our systems.

Our budget for this financial year reflects an increase of 6.5% as depicted below. It is a lean budget compared to the felt needs of our people but we can assure this house that this will make a difference to the quality of life of Gauteng citizens.

CONCLUSION

Honourable Speaker, it is said that: "What the mind dwells upon, it grows upon. What the mind grows upon we become!" Indeed as a people, as a government and as a country we have become the epitome of Energy, Passion, Hope and Daring. The future beckons and we oblige. Inspired by the tireless efforts and visionary leadership of our Premier, comrade Mbhazima Shilowa, this ANC-led government will continue its innovative search for new ways and better techniques to achieve the collective goal of poverty eradication and sustained economic development.

BUDGET DETAILS: DEPARTMENT OF PUBLIC TRANSPORT, ROADS AND WORKS

1. Management Services and Administration: R,000

Budget 00/01: 65 032
Budget 01/02: 62 167
Increase/Decrease: -2 865
Percentage: -4.4%

2. Strategic Planning: R,000

Budget 00/01: 35 373
Budget 01/02: 41 661
Increase/ Decrease: 6 288
Percentage: 17.8%

3. Transport Infrastructure: R,000

Budget 00/01: 385 380
Budget 01/02: 424 751
Increase/ Decrease: 39 371
Percentage: 10.2%

4. Transport Management: R,000

Budget 00/01: 197 118
Budget 01/02: 207 532
Increase/ Decrease: 10 414
Percentage: 5.3%

* 5. Maintenance and Community Based Public Works Programme: R,000

Budget 00/01: 226 978
Budget 01/02: 201 945
Increase/Decrease: -5 895
Increase/ Decrease: -6.5

* 6. Professional Services: 30 928

Total: R,000

Budget 00/01: 909 881
Budget 01/02: 968 984
Increase/Decrease: 59 103
Percentage: 6.5%

* Previously included in Public Works budget.

Comrade Speaker, allow me to take this opportunity to thank members of the Standing Committee on Public Transport, Roads and Works for their sterling work in ensuring that we remain transparent and accountable to the people of Gauteng. I also want to express my heartfelt appreciation of my personal staff and the officials of my department, under the able leadership of Head of Department, Mr Jack van der Merwe, for their dedicated professional support.

A special word of thanks goes to our Premier, comrade Mbhazima Shilowa for your support, counsel and leadership. Many thanks to my colleagues in the Executive Council for your unwavering collective support and encouragement.

To the bedrock of my support - my wife and children - thank you for being there during moments of self-doubt and failing strength. It also so happens that today is her birthday. May she enjoy many more prosperous years.

Finally, In his book "How the Steel was Tempered", the Russian writer, Nikolai Ostrovsky, says that One should live life such that one day you should have no torturing regrets of a mean and petty past. So live that one-day you should say: all my life, all my strength was dedicated to the struggle for the liberation of all humankind.

With these words, I commit myself and the Department to use the budget allocated for the financial year 2001/2002 to discharge our mandate of effective and efficient service delivery for the eradication poverty, for sustained development and for A BETTER LIFE FOR ALL!

I thank you.

Contact: Priscilla Pietersen (011) 355 7382/082 778 9996

Issued by: Office of the MEC for Transport, Roads and Works, Gauteng, 22 May 2001