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THE DEMOCRATIC PARTY MOTION ON THE FUTURE OF THE MAFIKENG INTERNATIONAL AIRPORT VIZ. THE CAA SUSPENSION OF THE AIRPORT LICENSE

1.INTRODUCTION

1.1 Getting a handle on the much-politicised Mafikeng International Airport Project is no mean feat especially when the Democratic Party desperately tries to drive a wedge seeking to split our confidence and that of the masses of our people spreading it open for cheap political point scoring. The simple and arresting truth that became clear in the recent past, is that what Honourable Members Chris Hattingh and Lever have fed through their surrogate old white networks linked to newspapers (in particular the Citizen and Mafikeng Mail) to the general public, have been nothing but conscious misinformation, gross misrepresentation of facts and irresponsible reportage at times bordering on malice and attack on my personal integrity.

1.2 Nonetheless, I remain steadfast and focused on the task at hand and the dictates of my conviction, which the Members Hattingh and Lever have no political and moral credentials to question. In the midst of their lone and undeserving attack, I am reminded of words of wisdom that I find more relevant to this case, uttered by Steven Bantu Biko, who, when confronted by similar sophisticated challenges in the gallant fight to free the masses of our people from bondages of apartheid, once said:

"The most powerful weapon in the hands of the oppressor is the mind of the oppressed."

1.3 The transit of the mind of the oppressed from the oppressor is a hotly contested terrain. Sophisticated as it may be on the part of the Democratic Party through systematic propaganda to continue ungodly hold of the mind of the oppressed would not deter myself, the ANC led Government and the citizenry. So, all of us understand that the politicisation of the Airport Redeployment is no accident but a cunning agenda of the Democratic Party intended to erode the confidence and support of government, which is heartily welcomed. This tiger I will ride and ultimately tame.

1.4 Having mapped out the political landscape on the Mafikeng International Airport Project and the forces at play, I wish to categorically neither state without fear nor favour that the Mafikeng International Airport Project is firmly on course. All the significant elements to steer the Project are mobilised and geared for implementation. I have my ducks in a row. What is the evidence for this?

2. MAFIKENG AIRPORT

2.1 On the 2nd February 2001 the Civil Aviation Authority conducted an audit on the airport and gave the Department of Transport, Roads and Public Works a report, which highlighted issues of non-compliance. The issues were categorised into the following areas of focus: -

2.1.1 Airport facilities
2.1.2 Vehicles and equipment
2.1.3 Fire fighting, rescue and emergency medical support service
2.1.4 Systems, manuals and operating procedures and
2.1.5 Staff training and
2.1.6 Management.

2.2 Based on the above audit, the CAA issued a Notum temporarily suspending the airport license until 4 May 2001 after which if the necessary steps to rectify the situation are not taken the license will be permanently suspended. On closer scrutiny why this unfortunate and unacceptable setback occurred, a team that I had appointed led by a Chief Director discovered that the Mafikeng International Airport was grossly incapacitated at management level resulting in poor management of the airport. I must hasten to mention that this weakness was occasioned by the untimely resignation through voluntary severance packages of two most senior managers and was identified much earlier as central to the shortcomings at the airport. Discussions were at a fairly advance stage to resolve this particular matter. I accept with full humility this weakness on our part.

2.3 The above temporary suspension takes place at the time when the Department had submitted an application three months in advance for the annual renewal of the airport-operating license whose deadline was March 2001 and the CAA has acknowledged receipt of the application.

2.4 Owing to the license suspension, on the 11th April 2001 an emergency meeting was convened between a high-powered delegation of the Department and Civil Aviation Authority (CAA) in Pretoria. The purpose of the meeting was two fold:

2.4.1 to present to the CAA our Departmental Plan and Strategy to comply with the issues rose within the stipulated timeframe.

2.4.2 to secure a firm commitment from the CAA that it would not subject us to long tedious processes once we have complied.

2.5 The CAA in the above meeting of 11 April 2001 accepted and supported the process of corrective measures adopted by the Department. The parties agreed that at an appropriate time towards the end of April the CAA will be invited to re-inspect the airport to achieve final acceptance and approval of the Compliance Strategy thereafter the CAA would lift the suspension and renew the license.

2.5 On our part, in taking immediate corrective measures, the Department ring-fenced a budget of R4.4 million to acquire the necessary equipment and other services listed in the audit report. The entire process of compliance was targeted to be complete by the end of April, as I had committed myself on the 11th April 2001 debate.

2.6 On the 26th April 2001, the CAA Commissioner on receipt of a positive re-inspection report, lifted the suspension of the Mafikeng International Airport Operating License nine days ahead of the CAA stated deadline. They went further to appreciate and congratulate our prompt response and professional manner in which we dealt with the compliance requirement.

2.7 However, I must admit that this whole matter has personally and officially embarrassed me. A competent investigator will be appointed in the coming week to fast track an enquiry into the weaknesses, which led to the suspension of the airport license. Disciplinary measures will be taken against those found to have mismanaged the facility leading to the suspension of the license. A report on the findings will be ready in the next two months.

2.8 Ironically, the Democratic Party and their surrogate media have ignored other major positive developments in taking forward the redeployment agenda of the airport. To add salt into this wound, factual information presented to them have been turned around and misrepresented to suite their myopic agenda. Against these odds, we have persevered patiently recording the following 'not so news worthy' milestone achievements:

2.8.1 Firstly, as required by the CAA, we submitted our Airport Operating License on the 30th January 2001 three months in advance of our renewal period being 31st March 2001 and secured approval from CAA with effect from the 14th May 2001 valid until 31st March 2002.

2.8.2 Secondly, the announcement of the appointment of an airport management company, AIRRANGE Pty (Ltd) who assumed duty on the 1st June 2001. The appointment of this private company will ensure that compliance issues are adhered to and that never again should the license be suspended on the basis of non-compliance with aviation safety regulations or any other foreseeable and avoidable reason.

2.8.3 Thirdly, the reinstatement of the flights between Johannesburg Airport and Mafikeng Airport was also announced and unnoticed by the Democratic Party. Two companies have been recommended being Interlink Airways and Aerotech Air Services to render scheduled flight services to Johannesburg. The companies have been informed about their selection and will commence services soon after the contracts have been signed targeted for 1st July 2001. Once this has been done, the companies will publish their flight timetables and fare structures. A value chain has been established between the travel agents and the airline operators. The official launch of the services would be done in the next two weeks.

2.8.4 Furthermore, dialogue with more airline operators is continuing with the view to start flights from Mafikeng to other destinations in the province and beyond as part of building the much needed secondary aviation network in the province.

2.9 What have we done in creating a competitive urge for the Mafikeng Airport in lowering input costs to stimulate business activity?

2.9.1 After conducting a comparative study on rates and tariffs charged by airports and aerodromes in the country, we discovered that the rates and tariffs of Mafikeng Airport are equal to those of Johannesburg International Airport. This is an anomaly for an airport where there is no competition for space in the facilities because of the low volumes of aviation activity compared to Johannesburg International.

2.9.2 We have also analysed the value chain and cost drivers in the aviation industry and arrived at the conclusion that to transform Mafikeng Airport into a competitive business entity, we should lower input costs in line with the President's speech.

2.9.3 We have lowered costs of landing, parking, hangar and accommodation to competitive levels in order to attract the industry players to use the airport and thus visibly increase the volumes and levels of activity at the facility. This tactical move is key to the development strategy for aviation in the province, which will be discussed below.

3. LET ME CLARIFY THE CONTEXCT OF THE SO CALLED APPLICATION OF THE INTERNATIONAL PORT OF ENTRY FOR THE MAFIKENG INTERNATIONAL AIRPORT

3.1 In December 1998, following a comparative analysis between Mafikeng International Airport and Pilanesburg Airport, based on the recommendation of the Department Executive Committee, we resolved to temporarily transfer the Mafikeng International Entry Port Status to Pilanesburg Airport. At that time, a Public Private Partnership and the positive market test with an infrastructure investment of R20 million-favoured Pilanesburg Airport and increased the potential of that region. An application in this regard was submitted to CAA for consideration, which NIDS has considered and not approved yet owing to certain requirements being met.

3.2 However, the Democratic Party's Hattingh and Lever chose their own interpretation of the situation and went on to present their own false view on the matter through the Mafikeng Mail. On Tuesday, 29 May 2001 at the sitting of the NCOP, the National Minister of Transport, Honourable Dullah Omar responded to the Democratic Party Lever question (no. 26) published on 21/5/2001 (16/2001), which I wish to fully quote and read the oral response of the Minister:

3.3 Mr L.G. Lever to ask the Minister of Transport:

"Whether the North West provincial Department of Transport had applied for international status for Mafikeng Airport as at 15 May 2001; if so, (a) when can a response to this application be expected and (b) what factors will be taken into account in considering the application?"

3.4 Oral written reply of the National Minister of Transport:

"Mafikeng Airport always enjoyed the status of an international port of entry. Recently the North West Provincial Government decided to enhance the status of Pilanesburg Airport, in order to position that airport to service the tourism market. In that process, the North West Government decided to ask for the transfer of the status of Mafikeng Airport to Pilanesburg Airport. Pilanesburg Airport makes it easier for tourists to visit areas such as Sun City, and other tourists' attractions.

The development of Pilanesburg Airport has proceeded with the assistance of the Airports Company of South Africa (ACSA).

I am informed that the future of Mafikeng Airport is still being examined with a view to redefine its status and role. One of the issues being looked at is to possibly develop the airport into a training centre for the aviation sector. The future status of the Mafikeng Airport is therefore still under discussion.

The process for designation of international airports is a complex one, and is done in consultation with the National Inter-Departmental Structure (NIDS), my Department, and also the Department of Home Affairs (which is empowered in terms of the Aliens Control Act, Act No. 96 of 1991, to designate international points of entry). From these role players inputs are submitted to Cabinet, which takes the final decision.

(a) See above

(b) From a transport perspective, my Department through the Civil Aviation Authority is responsible for ensuring that any application for an international status of an airport meets the aviation safety and security standards. Other factors considered include, aerodrome designs requirements, personnel, aerodrome emergency management system and environmental management programmes, etc."

3.5 I wish to contend and categorically state that until the Mafikeng International Port of Entry has been transferred, the application for such a status does not arise and the Democratic Party and the Managing Editor of the Mafikeng Mail must get this fact and understanding right in their minds.

3.6 The Managing Editor of the Mafikeng Mail has not only exposed his direct interest in the negative reportage of the Mafikeng Redeployment Programme but employs very cheap journalistic ethics in achieving the Democratic Party agenda. Not once has he requested our opinion on all the articles he had published. He together with his party have formulated charges against us, took us to their court, put us on trial and judged us without our defence nor any hearing. Yes, old habits die-hard.

4. WHAT IS THE DEPARTMENT DOING TO INTEGRATE DEVELOPMENT OF THE AVIATION INDUSTRY SECTOR IN THE NORTH WEST PROVINCE

4.1 During our strategic planning process, the department has conducted a thorough analysis and evaluation of all the programme and projects to date against the strategic programme of action provided in the President's State of the Nation Speech as well as the Premier's State of the Province Speech. We emerged with a strategic plan, which I presented to the public in my budget speech to the legislature. We committed ourselves to widen public debate and participation in our projects through continuous information dissemination building on the popular subject of Mafikeng International Airport.

4.2 OVERVIEW OF STRATEGY FOR INTEGRATED DEVELOPMENT OF AVIATION IN THE PROVINCE.

4.2.1 Currently in the province, we do not have a viable aviation network, which caters for the bottom end of the internal provincial market through to the top end of the market represented by international flights. The Pilanesburg Airport, the Mafikeng Airport initiatives, municipal aerodromes and private landing airstrips do not have sufficient volumes of traffic which will make such facilities profitable to run as businesses at the moment. To achieve business viability, market and business opportunities have to be created and continuously stimulated. We also believe that any foreign direct investor will be encouraged and have confidence to risk their money where the local business and government equally have investment and shared risk.

4.2.2 This government is an active agent in enabling development and thus in the sphere where we have influence and control, be it as a bulk buyer of services or as custodian of regulatory power, we will push the right levers to kick-start and sustain development.

4.2.3 In his address at the opening of Parliament 2001, President Thabo Mbeki said:

"Steps will be taken to increase the number of flights to and from South Africa to assist with the promotion of tourism."

Flights referred to above are international and represent the top end of the market network, which are targets for Mafikeng and Pilanesburg Airports. Once tourists have arrived at these key entry ports, at the moment they will not have an internal network, which will ferry them to the different tourism destinations and facilities around the province as quickly as they would wish.

3.2.4 We are going to create a competitive secondary aviation network at provincial level which will be a feeder network to the top end international network for both commercial and passenger movement. The President further says in his speech: -

"To improve our competitiveness, we must lower input costs throughout the economy "

Inspired by the above pronouncement, we are analysing the business processes, the value chain and economics of aviation and are evaluating critical nodes in this chain where input costs can be lowered to make the industry competitive and friendly to new emerging entrants in the industry. If the input costs to the industry players are low, the costs of flying will be affordable and accessible for the travelling public as well as tourists, thus the numbers of passengers (including more people from previously excluded communities) will increase making the industry viable.

3.2.5 The new business opportunities will be open and available for economic empowerment of previously disadvantaged people and communities; these opportunities will create new jobs in this growth sector and will promote SMME formation by new entrants in the aviation sector.

3.2.6 There are some critical developmental challenges which if not addressed might become obstacles to the possible entry and participation of previously disadvantaged citizens and communities into the aviation sector. Some of these barriers to entry are peculiar to aviation based on its past history in South Africa where aviation was closely linked to the military and therefore accessible only to the white male players. These factors are:

* Lack of Aviation infrastructure in previously Black areas and rural areas / municipalities
* Lack of Access to Human resource development and skills in aviation
* Lack of Access to technologies and equipment appropriate for aviation applications
* Need for logistical, scheduling and intermodal planning to link movement of goods and people from flights to land based transport modes and back
* Lack of Access to venture financing/ capital

3.2.7 Critical to this development will be the upgrading of existing aviation infrastructure in municipalities to make them to meet stringent safety standards. In those areas where significant tourism activity is available but no aviation facilities are available, private sector participation will be encouraged to attract capital investment and to open business opportunities for previously disadvantaged.

3.2.8 Access to skills development for young people in pilot training, ground engineers, airport tower controllers and many more needs to be given attention. The new entrants will also need business skills in aviation for them to become sustainable as SMME's. The Department will enable access and availability of skills training as an immediate task to meet the basic training needs for those new to the sector.

3.2.9 Urgent solutions are needed for these challenges and we believe that all our people in the province will stand behind the department as we enter this new era of development.

3.3. INTEGRATION AND SUPPORT FOR OTHER SOCIAL AND ECONOMIC ACTIVITIES BY AVIATION SECTOR IN THE PROVINCE

3.3.1 Aviation, as part of the wider transport sector, is an industry on its own but is also a vital input in the economic growth and competitiveness of other industry sectors. This sector will be guided to explore integration plans with other economic sectors such as tourism, mining, high-value low-volume low-tonnage manufacturing, agriculture and cultural industries. Once a viable and profitable provincial aviation network is in place, other social services e.g. health, social affairs and others will find the aviation mode of transport to be efficient and effective for some of their critical operational activities.

3.3.2 Building on the President's speech as quoted above, as a province; we have an interest in capturing a share of the anticipated expansion of the tourism market into South Africa. Through integrated planning between Transport, Roads and Public Works jointly with Tourism and Parks Board, we can achieve correct positioning and gearing to render this provincial industry competitive, growing, absorbing new employees, empowering previously disadvantaged and creating viable SMME's. From the President's speech, we further learn that: -

" The Business Trust has already announced its decision to help create 3 000 new black owned tourism enterprises "

3.3.3. We need to know where old tourism facilities are as well as where the new ones will be located so that we can provide transport solutions towards the competitiveness of this industry.

3.4 ORGANISATIONAL DEVELOPMENT: ESTABLISHING A PROVINCIAL AVIATION LEKGOTLA

3.4.1. The Department recognizes its own limitations as a government entity and believes that to achieve the objectives we have set for ourselves, we need close consultation and participation of the industry players as well as previously disadvantaged people and communities who aspire to access the aviation industry sector.

3.4.2 A Provincial Aviation Lekgotla will be established through provincial co-ordination and integration of municipal and private sector aviation infrastructure owners, travel agents, equipment suppliers, state and private tourism facility owners, land transport tour operators, hospitality and accommodation operators, previously disadvantaged groups including women's groups, youth groups and physically challenged people who aspire to access the opportunities available in this sector

3.4.3 The Aviation Industry Lekgotla held on the 18th May 2001

* Two hundred and twenty one (221) participants attended the Lekgotla held at the Mafikeng Airport including airline operators, air traffic controllers, aviation safety authorities, travel agents, tour operators, aviation security, aviation training providers, municipalities, tourism authorities, cargo handling and forwarding operators, emerging businesses, aviation equipment manufacturers and suppliers, women, youth, CBO's, NGO's, financial institutions

* Panel discussions were held and recommendations made on the following subjects: -

* Creating a secondary Aviation Network
* Entrepreneurship and access to capital/ finance
* Development of Aviation Infrastructure in the Province
* HRD and training systems in the Aviation sector

For more information please contact: James Moche at 082 802 0585

Issued by Transport, Roads and Public Works, North West

5 June 2001