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"More money than ever has been allocated to my Department for new Water Services projects - one billion, two hundred and five million, two hundred and eighty seven thousand rands (R1 205 287 000) which will be topped up to over 1,5 billion rands through the generous assistance of donors, notably our European Union partners". These were the opening words of Minister Ronnie Kasrils' budget speech to the National Council of Provinces today.

The following are key extracts from his address:

Next month, we will celebrate the nine millionth person to gain access to safe water through this programme. Providing infrastructure is not enough - it must be effectively managed. The grant to fund the operations and maintenance done by my Department in providing water through over 1544 schemes across the country has also been increased substantially, by R296 million to R996 million. This "grant in kind" to local government, in addition to the equitable share of revenue in the budget of my colleague Minister Sydney Mufamadi, enables us to fund free basic water in the poorest communities of the country.

Over the next three years, the water and sanitation schemes operated by my Department should be transferred. 1544 Schemes will be transferred comprising in total 27 249 separate "elements" of infrastructure, pipelines, pump stations, treatment works etc with a replacement value of R9.95 Billion.

8 453 Elements of infrastructure will be refurbished before transfer at a cost of R710 million with R116 million budgeted for the current year. Much of the refurbishment is required because of normal ageing although some maintenance has been delayed due to budget constraints. I regret to say however that vandalism and theft has also been a substantial problem and I appeal to members to help us build a culture of respect for public property in our communities.

Our programme is to complete all transfers by June 2005, 90 schemes during this financial year, with all conditional grants (subsidies) phased out by June 2011 at which stage the conditional grants will be incorporated into the equitable share allocations to local government.

Taking into account the programmes of the Department of Provincial and Local Government (DPLG) and of Housing, 376 666 toilets were constructed, reducing the national backlog to 16,7 million people.

For the coming financial year, the Department of Water Affairs and Forestry has allocated R321 million to local government for sanitation. Our target is to build 120 000 toilets as part of the national target of 300 000 per annum by government as a whole. If we can achieve this rate of delivery, we should be able to reach our target by 2010.

As in previous years, priority will be given to areas where there have been cholera outbreaks. Contrary to those who allege that cholera has been caused by water pricing and cutoffs, it is clear that it occurs generally through the wetter and warmer areas of our country in poor communities without basic water and sanitation services and without the knowledge of the good hygiene practices that can protect them which is why we focus on health education as well as on toilet building.

In addition to addressing the original sanitation backlog, the Department is facilitating the eradication of the bucket system currently used in nearly 500 000 households. R61 780 000 is allocated this year. I am sure we will achieve our target date of 2006 for eradicating the buckets.

Last year I warned that we were monitoring illegal water use and, using data from the "Eye in the Sky", the Department has begun legal processes against water users. Directives have been issued which will be followed by prosecutions where unlawful actions are not stopped although I am pleased to say that many water users stop their illegal activities once confronted with the satellite evidence.

The current drought in some areas highlights the need for discipline in the use of water and control must go hand in hand with improved management. This is why we have transferred responsibility for agricultural scheme operation and maintenance to water user associations.

But the process of transforming water user associations reflects the challenges facing the farming communities throughout the country. Current water users are still largely white commercial farmers although the associations now include representatives from local government and black farmers. We encourage water users to take over scheme management but this must be done in a way that reflects the values of the new South Africa. I certainly will not tolerate continuation of human rights abuses from our apartheid past in any organisation for which I am responsible.

Accordingly, I have instructed my Director General to strengthen Departmental oversight of the Water User Associations and ensure that their human resources and procurement policies are in line with government policy. We will also encourage them to find ways to contribute to the transformation of the commercial farming community.

Since 1998, the Department has provided financial assistance to emerging farmers, with capital subsidies of R47, 74 million given for 867 new small scale farmers and 506 women (in respect of food gardens) on a total irrigated area of 4 680 ha. A further R630 000 was paid as operating subsidies to 104 farmers irrigating a total of 897 ha.

The restructuring of the Department's plantation forests has continued. And is already bearing fruit. We were delighted to learn that Mondi South Africa is investing R2 billion to expand its mill in Richards Bay to export an additional R500 million worth of pulp per year. R800 million of the investment will be spent in South Africa, benefiting local businesses and their employees and Mondi will expand procurement from black-owned businesses.

I want to see similar development in the Eastern Cape, the one area in the country with significant potential to expand forestry. 60 000 hectares of new forestry could be added over the next 20 years, creating 3 000 direct jobs, bringing development to the rural poor, and alleviating poverty. Industry believes that new plantations would allow further expansion of processing facilities in the province, adding value to the raw timber.

We can ensure that benefits are equitably shared with the communities whose land will be used for growing trees as we are doing in the Singisi area, where after forestry restructuring, there is already R25.6 million of rental income awaiting distribution

We have made much progress across all fonts but clearly there are many challenges and much remains to be done. Nevertheless, I have noted that some critics of government have found it necessary to invent statistics with which to attack us. I will go into more detail about this in the Assembly on Friday but if our critics have to invent problems, we must be making some progress in tackling the real issues.

Enquiries: Themba Khumalo on 0828023432, Babs Naidoo on 0828073547

Source: Department of Water Affairs and Forestry (http://www.dwaf.gov.za)

6 June 2003