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INTRODUCTION

Chairperson and Honourable Members, allow me emphasise at the onset the importance of this Honourable House where we can and should advise and criticise as democracy demands from us, to fulfil our obligation as representatives of the electorate to whom we are accountable.

Chairperson, I am praying to the Almighty God that the existing differences in our Provincial Parliament would not disrupt or distract us in doing our work but to assist us to resolve the problems and serve the electorate. If we as leaders cannot reconcile our differences, we must accept responsibility for the perishing of our country. I therefore pray for peace and reconciliation.

We are nearing the end of the second term of our democratically elected Government. We should now accelerate our political maturity rather than keep on reminding ourselves that we are in the new South Africa. We should display maturity by fighting against violence, corruption, crime and all the other evils disrupting the society's daily lives. My Department is prepared to fight against all the abovementioned evils. I believe in putting people's needs first.

In terms of the country's Constitution and the Public Service Act, the Department of Works is the statutory body responsible to provide office accommodation for other Provincial Departments to enable them to meet their service delivery requirements.

The Department of Works with it's vision to be the preferred provider of accommodation on behalf of other Departments, is committed to use it's expertise in its efforts to obtain infrastructure of the highest quality according to clients needs and to promote the use of SMMEs in its strive to play a significant role in the economic development of the country.

Honourable Members, you will realise as I continue with my speech that my Department handles large sums of money to meet the needs of other Departments. Therefore the Public Finance Management Act (PFMA) is an indispensable tool in my Department's service delivery on behalf of our client Departments. The greatest challenge facing my Department is to ensure that other Departments are able to meet their service delivery requirements. My Department will increase its efforts by utilising available technology in the building industry. We also assist our client Departments with professional and technical advice when requested.

The building industry is a major job creator, taking into consideration the huge amounts spent. By making use of SMMEs the Province is able to play a significant role to facilitate the creation of job opportunities and training to transform and improve our people's lives. In our quest to serve our client Departments we are also making an impact on the lives of many people.

Challenges

Chairperson, I would have failed in my position as well as a human being if I do not make mention of the disastrous affect of HIV/AIDS on our country. People are losing their lives or capability to work due to this pandemic. Every Government Department is affected as its employees, their relatives, children and friends live with and many die from HIV/AIDS. Last year I reported in this House that my Department was engaged in the AIDS Awareness Campaign. I am proud to announce that a Departmental Policy has been developed which was approved on 16 April 2002. The great challenge now is for the Department to implement this policy.

The Department will shortly be introducing two other programmes namely, the Employee Wellness Programme and the Home Based Care Programme. These two programmes will enable the Department to provide affected and infected staff with information on the proper diets and supplements that should be taken by those suffering from the epidemic.

I would like to use this forum to explain the relationship between my Department and our client Departments. High profile negotiations between my Departmental officials and client Departments are continuously taking place. No unilateral decisions in respect of services provided on behalf of other Departments are taken. All work must be requested and approved by client departments. Funds for capital and maintenance work to buildings are voted on the respective Departments' budgets. Good relations have been established at regional/district level to address maintenance and capital work requests. If work is performed without the authority from the client department my department would not be able to recover the expenditure. The Department of Works has never declined or refused to carry out the requests received from client departments.

Non-core functions

These functions such as water purification and sewer treatment are an area of great concern for my Department. These services could not be discontinued without detrimental effects on hospitals, clinics and communities in mostly rural areas. These non-core functions have been in existence before the amalgamation of the erstwhile Administrations. During the amalgamation, these functions as well as the officials performing these functions were allocated to my Department.

In terms of Water Services Act (Act No. 108 of 1997), Local Government is the designated water service provider. My Department has up to now been engaged in the sixty-nine water purification services in the Province. During October 2000, the Department commenced the programme of handing over water purification functions to Local Municipalities in a transparent and inclusive process. Provincial and National Government Departments, employees and employee organisations were invited to play a role in the drafting of a policy in this regard. It will be appreciated that this is a time consuming process consisting of various phases. The first facilities were handed over to the Uthungulu District Municipality. It is anticipated that the transfer of the remaining facilities will be completed before April 2004. The demarcation of land and the transfer thereof will commence thereafter.

Community development and poverty alleviation

My Department's Development Facilitation Directorate in co-operation with local councils is involved in community development projects, development of SMMEs and the registration and development of co-operatives as a means of poverty alleviation.

Community Based Projects are identified from the various local and District Municipalities' Integrated Development Programmes. My Department is represented on the various forums by a senior official. This ensures that projects, which are to be funded by my Department, were identified through full community involvement and will fit in with an approved Development plan. The communities identified projects according to their needs and sustainability, therefore communities will take ownership of these projects.

Due to financial constraints, the Department will only supply communities with the physical requirements to complete these projects such as buying block-manufacturing machines, the building of crèches, training institutions, poultry structures and fencing material. What is of importance is that the communities are given training to enable them to help themselves. These projects are scattered all over the Province of KwaZulu-Natal. Due to the amount of requests from the communities, the Department is considering increasing the allocation of funds in this programme.

The Development Facilitation Directorate's role in the National Community Based Public Works Programme is to provide facilitation and monitoring to ensure the success of the projects. This programme is funded by the National Department of Public Works and an amount of R22 039 021-00 was expended for 2002/2003 financial year. These funds were used to build community markets, gardens, irrigation systems, delivery of water, school buildings, playgrounds etc.

Chairperson, I feel I must now report on the success we have had amid difficulties, which had a bearing on the functioning of the Department. The Honourable House will recall, I have in the past mentioned that my Department's regions have a desperate need for both technically and professionally qualified personnel in order to improve service delivery and meet client satisfaction. I am however glad to announce that much progress in this regard has been made and 7 Architects, 3 Quantity Surveyors and one Engineer have been appointed. As can be seen, we were less fortunate in obtaining the services of Civil, Mechanical and Electrical Engineers.

An important issue that has disrupted us a great deal is that of the implementation of the Procurement Act. The transformation that has taken place in the tender conditions and the accompanying changes gave rise to the delays which led to my Departmental officials, client Departments and the community at large being affected. The time lost cannot be retrieved but all efforts are made to ensure that delays are now minimized to ensure that my Department will be able to deliver.

On a more positive note, I am glad to announce that in keeping with my views to render a more effective service delivery closer to the communities, the Pietermaritzburg Region has already opened functioning district offices at Kokstad and Greytown and is currently busy making arrangements to open a further office at Ixopo.

Achievements

The achievement of my Department in providing buildings, maintenance and other related services to our client Departments exceeded R616 million for the 2003/04 financial year. I will briefly discuss the services rendered to our various client Departments

Department of Education and Culture

The Department of Works was notified on 31 August 2001 of the need to build classrooms and toilets in 958 schools. This programme consists of 4 088 new classrooms and 5 748 new toilets seats. To date 419 new classrooms and 941 toilet seats have been completed during 2002/2003 financial year.

The Department of Education and Culture requested the Department of Works to design a new generation of standard plans for primary and secondary schools with the intention to improve in particular, the climatic comfort conditions for teachers and learners alike. Selection of improved building materials will reduce future maintenance costs.

There are 31 complete new type A schools with an estimated cost of R285 million being planned of which 2 are in construction phase and 10 are in tendering phase

The total expenditure on this Department's behalf for the 2002/03 financial year amounted to R 266 million for buildings and maintenance. The anticipated allocation for the 2003/04 financial year amounts to R453 million

This poses a great challenge to my Department. However, my Department is engaged in continuous negotiations with the Department of Education and Culture. I indeed commend the co-operation that exists between my Department and the Department of Education and Culture.

Department of Health

The total expenditure for buildings and maintenance of buildings on behalf of this Department for the 2002/03 financial year amounted to R212 million. Allow me to highlight the following projects as examples.

INKOSI ALBERT LUTHULI CENTRAL HOSPITAL: The final delivery of the R640 million contract was certified on 15 March 2001 with the 365 day retention period expiring on 14 March 2002. First patients were admitted on 28 June 2002. The official opening of the 847-bed hospital took place on 22 November 2002. This building contract constructed over a period of 48 months was the biggest ever contract managed by the Department of Works.

KING GEORGE V HOSPITAL: On 12 December 2002, my Department was informed by the Department of Health that it had secured financing of R360 million to accelerate the redevelopment of King George V Hospital. Five of the 19 separately phased contracts are already under way on site.

The Department of Works has completed standard plans for five types of new Forensic Mortuaries planned to process between 500 and 2 000 forensic autopsies respectively at each type per annum. The first Type M1 mortuary to be built in Kokstad is ready to go on tender.

CLINICS: Ten clinics have been completed during this financial year, while seventeen are under construction and thirty-three are in the various planning and documentation stages.

COMMUNITY HEALTH CENTRE: A major project worth over R17 million at Paulpietersburg and is at completion stage.

MASTERPLANS (SITE DEVELOPMENT PLANS): The capital project for developing all provincial hospitals has reached 95% of completion. The total expenditure to date amounts to R2.65 million on consultants' fees.

Department of Social Welfare and Population Development

The total building related expenditure on this Department's behalf for the 2002/03 financial year amounted to R 31 million. The following two major projects need mentioning:

At Mahlabathini my Department completed new offices and houses worth R6.6 million

At Frischgewaagdt in Paulpietersburg my Department completed new offices and houses worth R7, 4 million.

Projects carried out on behalf of other client departments

Apart from the major client Departments mentioned above my Department also completed projects for the other Departments as summarised below:

* Agriculture and Nature Conservation: R11.1 million.
* Economic Development and Tourism: R2.2 million
* Department of the Premier: R1 2 million.
* Department of Transport: R9.6 million
* Provincial Legislature: R2.9 million
* Dept of Traditional and Local Government Affairs: R4 6 million
* Royal Household: R1.9 million
* Department of Housing: R1.8 million
* R73 million was expended on buildings, maintenance and related services for my own Department's buildings and shared buildings.

Chairperson and Honourable Members, although the signing of Service Level Agreements by our client Departments is still a matter of concern I am glad to be able to report that expenditure on behalf of our client Departments has increased as follows over the past four years

1999 - 2000: R 187 Million
2000 - 2001: R 278 Million
2001 - 2002: R 385 Million
2002 - 2003: R 616 Million

The increase in spending was due to an increase in the number of projects completed as reflected below

1999- 2000
Projects <R 10 000: 9,415
Projects >R 10 000: 1, 222
Projects R 1,OM: 22
Total: 10 659

2000 - 2001
Projects <R 10 000: 10, 959
Projects >R 10 000: 1, 723
Projects R 1,OM: 33
Total: 12 715

2001 - 2002
Projects <R 10 000: 12 788
Projects >R 10 000: 2 445
Projects R 1,OM: 45
Total: 15 278

2002 - 2003
Projects <R 10 000: 10 864
Projects >R 10 000: 2 686
Projects R 1,OM: 48
Total: 13 698

TOTAL
Projects <R 10 000: 44 026
Projects >R 10 000: 18 076
Projects R 1,OM: 148
Total: 62 250

Programme descriptions

The budget for the Department of Works is divided into three programmes, namely Administration, Real Estate, and Provision of Buildings, Structures and Equipment. As from the 2002/2003 financial year, provision has been made under each of these programmes for personnel and administrative expenditure. Previously the Provincial Community Based Development Programme was a separate programme namely Programme 4. With effect from 2003/2004 this Programme has been incorporated as a Sub-Programme: Community Based Projects, under Programme 3. Provision of Building Structures, and Equipment, as the execution thereof forms part of the Department's line function.

Chairperson, allow me now to deal with the budget allocation for the Department of Works for the financial year 2003/2004 amounting to R380 million as reflected in the White Book. It will be noted that this represents an increase of R66 million compared to the previous financial year's budget. Attached as annexure A is the summary of this allocation making comparison for the 2002/2003 and 2003/2004 financial years. In summary, the breakdown of the budget per programme is as follows:

Programme 1: Administration

This programme consists of two sub-programmes namely Minister and Management for which an amount of R94 204 million has been budgeted for. The purpose of this programme is to conduct overall management of the Department such as:

* Financial management
* Human resource management
* Transport management
* Legal services
* Risk management
* Funding of senior management (SMS packages)
* Rendering professional services.

Programme 2: Real Estate

There are three sub-programmes within this programme, namely
Personnel and Administration,
Acquisition of Land, Improvements and Rights and
Hiring of Buildings.

This programme undertakes land valuation, but only to a very limited extent. The short-term strategic objectives of this programme are to establish and maintain a fixed property asset register, to develop standard operating procedures, and to control the optimal utilisation of office accommodation. To achieve the purposes of these sub programmes an amount of R 3 6 million will be required.

Programme 3: Provision of Buildings, Structures and Equipment

This programme consists of the following sub programmes:

* Personnel and Administration
* Buildings and Structures
* Community Based Projects
* Prestige Furniture

This programme represents the line function of the Department namely, to provide and maintain buildings, structures, engineering works and prestige furniture for the department and the various client departments. In addition, the programme now includes community-based projects, which are targeted at the rural poor communities in an attempt to alleviate poverty. The programme: Community Based Projects was in previous years a separate programme namely Programme 4: Provincial Community Based Development Programme, but is now incorporated as a sub-programme under Programme 3. This restructuring was considered necessary, as the execution of these community based projects forms part of the department's line function. Personnel expenditure relating to the execution of the Departments line function is also catered for in the relevant Sub Programme. An amount of R281 695 million is budgeted to meet the requirements of this programme.

Conclusion

In conclusion, Chairperson may I take this opportunity to express my thanks to Dr. Meshack Radebe the chairperson of the Works Portfolio Committee and his committee for their support, co-operation and guidance that they have provided to my department.

The success of this Province is dependent on the full co-operation between Departments, Ministers, Portfolio Committees, Heads of Departments, departmental officials and employees. I would like to express my sincere thanks for the co-operation that my Department has had with the afore-mentioned stakeholders.

Lastly, I would like to thank my departmental staff for the dedication and support they have shown under the leadership of the new Head of Department, Mr. EPM Radebe.

Chairperson, I now move that the provisions in Vote 14: Department of Works be approved by the House to be part of the Provincial budget.

I thank you.

ANNEXURE A

SUMMARY OF BUDGET ALLOCATIONS FOR 2002/2003 AND 2003/2004

Standard Item
1. Personnel
2002/2003 BUDGET: 196 694
2003/2004 BUDGET: 223 095

2. Administrative expenditure
2002/2003 BUDGET: 28 505
2003/2004 BUDGET: 31 432

3. Stores and livestock: Current
2002/2003 BUDGET: 1 729
2003/2004 BUDGET: 3 076

4. Stores and livestock: Capital
2002/2003 BUDGET:
2003/2004 BUDGET:

5. Equipment: Current
2002/2003 BUDGET: 1 750
2003/2004 BUDGET: 1 457

6. Equipment: Capital
2002/2003 BUDGET: 6 972
2003/2004 BUDGET: 7 465

7. Land and buildings: Current
2002/2003 BUDGET: 272
2003/2004 BUDGET: 36 626

8. Land and buildings: Capital
2002/2003 BUDGET:
2003/2004 BUDGET: 25 516

9. Professional and special services: Current
2002/2003 BUDGET: 60 861
2003/2004 BUDGET: 50 893

10. Professional and special services: Capital
2002/2003 BUDGET: 16 707
2003/2004 BUDGET: 23

11. Transfer payments: Current
2002/2003 BUDGET:
2003/2004 BUDGET:

12. Transfer payments: Capital
2002/2003 BUDGET:
2003/2004 BUDGET:

13. Miscellaneous
2002/2003 BUDGET: 1
2003/2004 BUDGET: 1

14. Total: Current
2002/2003 BUDGET: 289 812
2003/2004 BUDGET: 346 580

15. Total: Capital
2002/2003 BUDGET: 23 679
2003/2004 BUDGET: 33 004

16. Total: Statutory payments
2002/2003 BUDGET: 526
2003/2004 BUDGET: 562

TOTAL
2002/2003 BUDGET: 314 017
2003/2004 BUDGET: 380 146

Issued by KwaZulu-Natal Provincial Government

16 April 2003