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Special Tribute to the Past "The shadows of our midnight past are being lifted - the tide has turned."

Mr. Speaker, Sir! Allow me to start by paying special tribute to one of our own. Some of my personal experiences over the last few years have also served to shape my thinking on a variety of aspects relating to politics and holding public office. I always hesitate to mention these experiences for fear of conveying the wrong impression. A person who constantly calls for his trials and tribulations is always in danger of creating complexities thereby making others feel that he/she consciously seeks sympathy and self-glory.

Nonetheless, we each have a past narrated by a collection of memories that are covered with shadows which are uniquely our own. These shadows representing darkness, gathered over many years of toil and hardship, crafted and shaped our destiny a destiny concentrated with our energy of struggle to emerge from the bleak and desolate shadows of man's inhumanity to man, into the shining and bright delight of freedom, justice and prosperity in my home, the North West Province of South Africa.

My past is a broken one, destined to wonder a broken landscape searching for answers. As I gathered the strength to struggle on, my courage refused me to see the darkness of the midnight shadow that covered my home, the North West Province of South Africa, but rather the stars in whose brightness and formation I derived light and direction to navigate my destiny. My fore bearer's in the African National Congress taught me never to be afraid of the shadows of darkness they patiently crafted my ability and that of my comrades to see the bright and glittering stars in this cover of dark shadows.

These memories of my past are in no way more important and better than your own, Premier Dr. Popo Molefe. You have endured extraordinary hardship during your years of struggle as a student leader - fighting a racist education system, civic leader - fighting for basic needs and ANC leader - the peoples' liberation movement and agent for change, the African National Congress. I know that you think your past is too 'small' to be acknowledged, true to the dictates of our movement, the ANC.

However, it is fitting at the start of your ten-year tenure as the first Premier of my home, the North West Province of South Africa that the last nine years of your able leadership continued to stir our resolve to lift the shadows of darkness - our past. We stand here this afternoon proudly proclaim that the shadows of our past are being lifted...the tide has turned!

Introduction

In April 1994, we began an unbroken journey to better the lives of the masses of our people. We look back with pride that the chaotic and uncoordinated nature of transport provision has changed for the better. We may not have achieved all of our noble intentions to pushing back the frontiers of poverty but we have covered large and considerable ground.

We crafted a new legislative framework targeting regulated competition by service providers in the taxi and bus industries, transformed traffic into a powerful weapon of law enforcement with adequate capacity and last but not least, we are on the verge of completing the Government Motor Transport transformation. Our greatest challenge remains closing the gap between the rural poor and urban centres. The shadows of our painful past are being lifted the pendulum has turned.

The past year - 2002/3 has been thee most exciting one. In spite of the poor performance of the preceding year (2001/2), something profoundly meaningful has begun. As we humbled ourselves before your august house some twelve months ago, with graceful courage to gather needed strength to make a fresh start, marking the lowest point of the pendulum, we set out a journey to navigate the turning point of that pendulum. We are proud to stand here today, confirming that it is a living reality that the pendulum has turned, the shadows of our past are being lifted - the tide has turned.

The Socio - Economics of Transport

Mr. Speaker, the past socio-economics of transport is still very much with us! The spatial structure on whose backbone lie the socio-economics of transport (basic tenants of passenger and goods movement) has not really changed. An average commuter travels longer distances to access government administration points, social service points and economic opportunity (employment, trade & industry) points.

This in itself puts a heavy burden on the input cost to transport, which in the final analysis, is borne by the public. The affordability levels of transport for these basic essentials of life are relatively high and at times not affordable considering the low-income earners, people living below the poverty datum line and the unemployed. More seriously, individual and households who have no income except social grants are expected to spend more on transport imposing an impossible demand on their mobility.

Of major concern, our public passenger transport system is more skewed towards economic service provision with little attention given to social service provision simply put, it is an unhappy truth that village pensioners, school going farm children and the unemployed in Tshidilamolomo, Mankhekhetha, Moruleng, Khuma, Mareetsane, Manyeding, Churchill, Moretele, Moshaweng and many more to mention do not enjoy this essential transport service. In some of these villages, that rely solely on bus passenger transportation with no alternative mode at all, busses have been withdrawn because they are economically not viable and unsustainable.

I was touched and moved by a group of twenty-two (22) professionals mainly from the health, engineering and arts fraternity working in the most rural part of our province. 99% of these professionals were born and bred in these villages and townships of my home the North West Province of South Africa, as I have listed above. They have returned from medical, engineering and accounting schools to serve their people in these rural homesteads. Lack of off-peak hour public transport is a serious impediment towards rural mobility.

Over and above these areas of concern, they sharply raised an alarm at the continued racial scholar transport in Stella, Mafikeng, Venterdorp, Potchefstroom, etc. The political and racial belief of blacks being inferior to whites is still very much with us, it is vividly captured every morning and afternoon by white kids travelling in comfortable buses alongside black kids bound for the same direction and at times same destination - a public school. Some of these buses are owned by the schools and subsidised by government through the scholar subsidy contract.

Another basic challenge is to provide, manage and maintain mobility for state departments. Our problem indicates that our emphasis must be twofold. We must create full capacity:

* for the transportation of patients transferred fro one hospital to another,
* for social workers to access poverty stricken homes (mainly in deep rural
* areas) to enlist children for social grants and the elderly for pensions,
* for traffic officers to patrol streets and roads to make them safe,
* for managers and supervisors to visit construction sites ensuring that the
* Community Based Public Works Programme succeeds,
* to facilitate mobility for Doctors and Nurses to serve over 4,6 million
* patient visits to clinics per annum as set out by the RDP standards (Projected
* number for the year 2001), and
* for messengers to courier communiqué within and across departments as well as
* many more needs for mobility.

But Mr. Speaker, once we have placed these vehicles with individuals for use, we must be concerned that they are applied correctly and not abused.

In a nutshell, transport is a basic necessity for sustainable social and economic development. Our spatial structure - shadow of our past, locates bulk of our black residential areas away from service centres imposing long travel requirements for accessibility. Given this context, we are in the business to create mobility for state departments, facilitate public passenger & goods mobility and manage traffic law enforcement to yield needed safety on our roads.

As we grapple with this task - the effort to lift the shadows of our past, we must create opportunities to empower and emancipate the youth, women and the disabled persons of my home, the North West Province of South Africa. We are further challenged to enhance the Black Economic Empowerment initiatives by bringing black entrepreneurs into transport ventures as we restructure the Department business processes. Surely, this will lend a formidable force in joint action to pushing back the frontiers of poverty.

Review of the Financial Year 2002/03

Mr Speaker Sir, it is with pride to report to the house that the mammoth task of separating the former Department of Transport, Roads and Public Works into the new establishment of the Department of Transport and that of Roads and Public Works (as at 1st April 2002) was completed in less than a year. I would like to pay special tribute to my Colleague MEC Jerry Thibedi and the management teams of both departments for their dedication and commitment to ensure a smooth transition.

In addition, the Executive Council adopted our new organisational structure in October 2002 and all staff members were placed appropriately. We have also succeeded to comply with Resolution 7 of the Public Service Coordinating Bargaining Council and are currently busy with the filling of a number of critical vacant posts, which are mostly on the middle management level.

The Department has achieved high level of successes as we set out to implement 2002/03 strategic plan objectives. Mr Speaker, may I take this opportunity to share with your august house the following key highlights:

* The financial and human resource delegations were finalised and will be implemented in full swing in this current (2003/4) financial year.
* Whilst acknowledging that the final financial figures as at the end of March 2003 are not yet available, but based on the third quarterly review I had with the department, it was obvious that based on the forecast then, we would collect seven percent more revenue than what was anticipated in the 2002/3 revenue targets. This is a remarkable achievement considering that the Revenue Directorate was not fully capacitated in terms of its human resource requirements.
* The financial expenditure patterns of the department reported at the end of February 2003 showed that we will be able to stay within our allocated amount save for a few items such as commuter subsidy and payment for the fuel and maintenance of the pool vehicles, which came under pressure due to various external factors. However this will be highlighted in the Annual Report and Financial Statements.

Regarding Land Transport, the successful highlights of the past financial year include:

* Successfully facilitated and coordinated transport logistics for delegates to and from pre - summits at Bafokeng (Women Summit) and Bakgatla (Youth Summit) of the World Summit for Sustainable Development (WSSD) in the Province.
* Successfully coordinated and facilitated transport arrangements for cricket fans in the North West Province. This was done in joint collaboration with the Taxi Industry in conjunction with the National Department of Transport and the ICC World Cup Cricket structures.
* Successfully facilitated and established five Regional Transport Co-operatives with fully constituted Boards of Directors. These Co-operatives will serve as the economic muscle of the Taxi Industry in the Province. The Province has been honoured with the high level of success-achieved to-date in this regard. This success is recognised throughout South Africa by our sister provinces as well as at National Department of Transport.

During December 2002, the Executive Council of the South Africa National Taxi Council (SANTACO) visited the Province in a fact-finding mission. They applauded the role of Government and the partnership that exists between the Taxi Industry and Government, and the incomparable progress made in our Province vis-à-vis the rest of South Africa.

It is in this context that I whish to pay particular respect to the Executive Committee of the North West Province Taxi Council under leadership of Mr. Norman Sechele - Provincial Chairperson, the Provincial Executive Committee and the Industry as a whole. Your leadership helped us turn the tide. The shadows are certainly being lifted in my home, the North West Province of South Africa.

The Taxi Retail Installation (TRI) programme is in full swing. This is the first "real" evidence of achieving the ultimate objective of this initiative to empower individual Taxi Operators in our Province through the co-operative collective bargaining business initiative and will provide the Taxi Industry in our Province with a capital investment of R29 million, of which the department is contributing R10 million for the current financial year, Caltex, the private partner recently appointed by the Provincial Tender Board contributing R12, 5 million and the Taxi Industry contributing R6,5 million.

A projected annual operational turnover of more than R15 million is expected. This approach further provides for an interim approach of utilising existing fuel outlets to ensure speedy start of business while planning and construction of the TRI's is proceeding.

The development of the Provincial Land Transport Bill for enactment by the Legislature in the early part of 2003.

The development of the Provincial Land Transport Framework, a five - year strategic document which will guide our intervention on the following areas; accessible transport to people with disabilities, non-motorised strategy, social transport, learner / scholar transport and the establishment of transport authorities at municipal level as well as the Provincial Current Public Transport Records, the latter which is awaiting approval by the National Minister of Transport.

The successful development of a strategy for non motorised transportation for the Province which culminated in the procurement of 2000 bicycles awarded to scholars and rural and farming communities who travel more than 10 km to the nearest school in the Kgalagadi cross border municipality.

Taking the service to the people through the opening of a satellite office in the Mabopane / Garankuwa area to service the thousands of public transport operators requiring registration in the region.

The successful inspections in loco, carried out by the North West Provincial Operating Licensing Board to identify difficulties pertaining to license registration for public passenger transport in the Erasmus / Hebron Corridor, Taung, Kuruman and more recently Ganyesa areas. The Board in collaboration with my colleague from Gauteng and I have also successfully dealt with illegal operations across the provincial boundaries of Gauteng and North West. Our congratulations to the board under the leadership of Mr. Oupa Monaisa and his Team for these achievements.

The Department in collaboration with the Taxi Industry has embarked upon the process of converting the old taxi permits into public transport operating licenses. The conversion of these permits will assist us to eradicate the route cause of taxi conflict.

In compliance with the Civil Aviation Authority requirements, the Department funded the training of thirty-two young men and women from previously disadvantaged backgrounds as civil aviation security officers. This process was a deliberate attempt by the Department to capacitate and employ men and women from a previously disadvantaged background in the provision of essential services in the Province and it should be noted that this project is the first of its kind in the Province.

Mr Speaker, I have to admit that although we have progressed well with the implementation of the Land Transport interventions, the department was not so successful with the Air Transport Service and related target projects. The cargo and maintenance transactions as mentioned in the last budget speech are not yet finalised due to various unavoidable circumstances.

The Road Traffic Management is in sound position. Whilst we will be the first to acknowledge that there is room for improvement, we have a stable traffic law enforcement capability with high visibility and patrols. However, in the tapering end of 2002, through regular site visits and observations carried out at ministerial and senior management level, we realised a dramatic decline in traffic officer and patrol visibility especially unauthorised withdrawal from strategic points outside build-up areas e.g. towns, townships and cities.

Equally, our response time to accident scenes and strategic interventions when required dropped due to this development. But I must hasten to say this was never close to a crisis situation. What became evident was that at the core of this problem, there was need for a more hands on deployment, management, control and supervision of our traffic members integrating with other enforcement and emergency agencies.

We were challenged to evolve our traditional methods of traffic enforcement to the new generation High Definition GIS Tracking, On-Board Computer Information and Fuel Tank Profiling capability to improve our operating efficiency. This fleet management solution of South African design adapted for integration and enforcement purposes is currently installed in 400 traffic vehicles, 75 ambulances and 25 municipal traffic vehicles of the First Implementation Phase.

This Satellite Global Positioning equipment delivers Date, Time, Position, Heading and Speed of patrol vehicles and ambulances to a central control and operational room on a continuous basis at 15 seconds intervals.

Confidently, my Colleague - MEC Dr. Sefularo, Mayors and myself will know with precision where - on what street (since the software delivers with high definition street maps for the major centres) - at what speed and at what time the emergency / traffic vehicle was being operated. Knowing the location of your vehicle, offers a multitude of advantages, such as restricting unauthorised vehicle use, controlling unscheduled stops, improving route planning, rapid deployment and redeployment. This in turn improves high levels of productivity and customer service.

Mr. Speaker, Sir! Let me now deal with the Road to Safety Strategy Framework with special reference to Arrive Alive Phase Seven Campaign. Against negative media reports about our failures regarding the Campaign, we want to prove the contrary. Statistical data at our disposal reveal that by average, there is a very insignificant rise in fatal accidents considering a multi-year comparison with a number of various factors such as:

* Peak-hour vis-à-vis off-peak hour periods
* Vehicular population based on sampling of traffic counts and NaTIS current data (local and thorough-thru traffic)
* Data on types of violations and high frequency times of committal
* Overall intervention strategy i.e. Business Plan Plans and Targets to be achieved.

On closer scrutiny of the statistical data, more fatal accidents occur in the month of August as opposed to December / January months considering that there is much higher traffic and more activity in December / January compared to August (Fig.1)

Our argument does not in any way suggest that we do not experience quite a high fatality rate in our roads, but rather that we should not be focussing on a single period which in terms of our scientific assessment would reveal the least fatal period. Our traffic control systems and capability must be applied prudently with the view to push back the frontiers of fatal accidents throughout the year.

We must use our statistical data to inform our strategy and tactic. We need an overall mobilisation focussing more on the problem area. The past year shows more pedestrians are victims of fatal accidents and we need a dedicated focus on that. Nevertheless, I believe that one fatal accident, is one too many and we will always strive for a zero fatal accident figure!

The Department is also proud to announce that the Winner of the 2002

National Driver of the Year Competition is a driver from this province, for the bus category - Mr Matlawa Maelane.

We have not succeeded in finalizing the re-engineering process of the Government Motor Fleet. This will remain one of the key priorities of the coming year. We have completed the status quo report; assessment of user needs and options analysis, including the feasibility of the most preferred options. The preferred option must address the recapitalisation of our fleet and fleet management system capable of reducing the risk and exposure to Government. This report is currently under consideration by the Executive Council.

2003/04 Budget Horizons

The total expenditure budget for 2003/2004 is R 585,416 million. The department anticipates collecting revenue to the amount of R222, 514 million. I will now provide you with a brief summary of the various programmes and the main commitments per programme.

Programme 1: Administration
Programme 1: Administration is allocated R 34,342 million for the following sub-programmes:

* Human Resource Management R 16,654 million

Notwithstanding our sobering performance in 2002/3, in our Third Quarterly

Review Session it became evident that Management was poor in supervision and a more hands on approach was and is required since this would have yielded even a much better outcome.

It is my considered opinion that we have managed to master and focus more on process and this year (2003/4) we will change gears to begin to measure the extend of our impact. We must fine-tune our programmes to generate impressive outputs and positive outcomes. We will measure how well employees carry out administrative process; how many people they serve; how fat they serve these people and most importantly what impact this yields to pushing back the frontiers of poverty.

The key activities will include the continuous analysis of the department's organisational structure and ensure that the human resource demand and supply needs are satisfied. This will also include Human Resource Management Information to enable line functionaries to professionally manage their staff. In addition it will have to ensure that eh legally required Employment Equity and Workplace Skills Plans are implemented.

The Sub-Programme will also provide support to line management with regard to Performance Management, Occupational Health and Safety, Labour Relations and Employee Assistance. The following human resource development interventions are planned: Orientation/Induction, Supervisory/, Managerial, Diversity and Information Technology Training Programmes.

Information Management R 4,441 million

The ability to generate and use data for effective and efficient decision-making is particularly important today, given the high volumes of information we manage daily. Our innovated systems support is to respond to complex and rapidly changing conditions in the information superhighway.

The Coordination of the strategic planning processes of the department through IT Solutions capable of monitoring and evaluating of our performance against set targets would go a long way in the Planning and Implementation of Programmes. It is in this context that the Departmental M-Strat Support System will be one of the key activities of this sub-programme. This M-Strat model will be aligned with the broader government planning cycles and the amount of R300 000 is allocated to finalise its development.

Furthermore, the Programme is responsible to provide technical support for various systems of our enabling data i.e. the National Traffic Information System, Registration Administration System, Operating License Administration System and various other IT capabilities in the department. Some of this IT support functions are done in conjunction with the Department of Finance - Directorate: Information Technology who provides a broader IT Support Strategy for users.

Communication R3, 344 million

This sub-programme manages the communications function of the department and will focus in the year ahead to formulate a Departmental Communication Strategy and the establishment of a departmental communications committee. In addition it will produce the quarterly departmental newsletter and ensure regular media contact and releases. It will also participate in provincial events such as Batho Pele, Imbizo week and Provincial Events Coordinating Committee. Its responsibility also includes the departmental transverse HIV/AIDS projects.

Finance R9, 903 million

The Finance Sub-programme is continuing with its efforts to streamline the financial management practices in line with existing legislation, comments and directives for the Legislature, opinions from the Provincial Auditor General and internal prescripts. Conscious of the amount of work that has been put in the process to turn around the condition inherited immediately after the amalgamation, this sub-programme has adopted an even more concerted effort to improve financial and risk management.

In the year under review, the recruitment of additional staff in the areas of procurement, assets management, risk control and project management shall support the development of existing capacity to meet the growing changes in the field of financial management.

The following are some of the key objectives put for the Sub-programme:

* Produce an unqualified Annual Financial Statements;
* Reduce input costs through value for money procurement policy;
* Improve customer relationship in line with the Provincial Batho Pele principle;
* Complete an update assets register for movable capital and;
* Establish programme budgeting and expenditure management.

Programme 2: Management Services

Programme 2: Management Services is allocated R 10,442 million

The main purpose of this Programme is to provide executive leadership and management services to the department and includes the Offices of the Member of the Executive Council, Head of Department, Chief Financial Officer and the Chief Directors for Transport Services and Road Traffic Management.

Programme 3: Revenue

Programme 3: Revenue Project is allocated R 28,069 million

The Department of Transport is responsible for the collection of about 75% of the Provincial Revenue. Mr Speaker, it is therefore not an exaggeration or understatement to inform the house that revenue collection is now an established core Programmes of the Department. The Executive Council has last year accepted that this function should be managed at the level of a Director. This position shall be filled and other managers shall be recruited in the areas of inspection and reconciliation to ensure that revenue due to the Province is not for any reason lost or delayed.

There are however, many challenges that need to be addressed. Firstly, priority shall be given to introduce what is known as the Best Practice model. This has already been implemented in Gauteng and based on lessons learned there, we will continue. This is done in partnership with the National Department of Transport and Business Against Crime.

Another prominent challenge is the agency services by some of the local municipalities. These external registering authorities owe the Province the amount of R 22 million. In the year under review the Department shall continue to engage the municipalities concerned to recover the outstanding amount in a manner that will not jeopardise the councils.

An amount of R2, 050 million is earmarked for the replacement of existing old computers at registering authorities. Training of existing staff in the areas of reconciliation and inspection shall also receive urgent attention.

Programme 4: Road Safety

Programme 4: Road Safety is allocated R 10,991 million

Arrive Alive Phase Seven Campaign during December 2002 to January 2003 has revealed some impressive data on where our focus should be especially with regards to education and awareness. More pedestrians died and we urgently need to formulate interventions in this regard.

The Road Safety programme will concentrate on the following key outputs:

* Educational/awareness programmes such as Teacher Seminars, Junior Traffic Centres, Speech Competitions, Workplace and Community visits.
* Improved Road Safety Communication by means of Radio talk shows and Newspaper articles.
* Pedestrian Management Plan which includes the identification of pedestrian hazardous locations and implementation of programmes to improve safety at these locations.
* Scholar Patrol Programme
* Full participation in the Arrive Alive campaign
* Driver of the Year competition

Programme 5: Traffic

Programme 5: Traffic is allocated R 120,141 million

Mr Speaker, in order to ensure improved road safety through effective law enforcement you need fully equipped law enforcers. This entails providing over and above for salaries and related costs, also the provision of subsidised vehicles, overtime, uniforms and other necessary equipment. Taking this into consideration you will then understand that almost 83% is spent on personnel, subsidised vehicles, fuel and overtime allowances, the main cost drives of this programme.

Although the programme will be engaged in various law enforcement activities, the key focus areas for the 2003/4 year will be on:

* Vehicle fitness or commonly known as roadworthiness
* Driver fitness, with emphasis on driving under the influence
* Pedestrian fitness, once again looking into the role of alcohol
* Stray animals in collaboration with the Department of Agriculture
* Public Passenger Transport, Government Fleet abuse and Special Projects
* Inspectorate

Programme 6: Government Motor Fleet

Programme 6: Government Fleet is allocated R 65,488 million

Almost 73% (R48 million) of the budget is earmarked for the fuel and maintenance cost of the existing fleet. An important factor to note is that for the year under review, no funds were provided for the replacement of obsolete vehicles in anticipation of the re-engineering process, which could result in a Private Public Partnership relationship, whereby the private sector will supply a fleet service to government.

Specific attention will also be given to the needs of the Departments of Health, Educations and Social Services, Arts, Culture and Sports with definite proposals on interventions to assist.

The Programme will also propose steps to counter the continuous misuse of vehicles by public servants.

Programme 7: Air Transport Services

Programme 7: Air Transport Services is allocate R 6,333 million

The Mafikeng Airport is a major infrastructure asset of the Province that remains under utilised. The Department is executing a financial viability analysis to determine the viability of various operational activities to ensure effective utilisation of this facility and its rightful contribution to the economic development of the Province.

The results of the study are due any day now and the Department plans to immediately proceed during this financial year with the implementation of the report's recommendations. I would also like to report that South African Airways (SAA) has in their recent procurement of their A320 -600 aircraft fleet, indicated that the Mafikeng Airport remains their first choice as a centre for flight crew training. Discussions with SAA are currently underway on this aspect.

Parallel to this, the Department in joint venture with the Department of Economic Development and Tourism proceeded in approaching relevant authorities and stakeholders to obtain the necessary approvals for the airport to serve as a distribution basis for air cargo. The process to obtain a concession for exporting cargo is proceeding while the Department awaits the approval for port of entry for the airport.

The Department further awarded a contract to a Service Provider for an interim period to provide security services to the airport as well as transfer skills and provide additional training to the 32 recruits as mentioned earlier, aimed at skilling these individuals over a twelve month period to effectively manage a North West Province civil aviation security company. It is our view that the establishment of this security company will put an end to the sourcing of aviation security for Gauteng Province, as previously done in the past.

Programme 8: Land Transport Services

Programme 8: Land Transport Services is allocated R 290,610 million

The bulk of the budget of this programme is paid for commuter subsidy. This amounts to over R 200 million for the 2003/4 financial year. Over the period the department has made various attempts to extend the Subsidised Bus Transport Services to other parts of the province, in particular the Southern District. Mr Speaker, this would come at a price. The need in this regard, has been determined through information gathered from the current public transport records and the actual cost for extending this service to the Southern district will be finalised in the next few months.

Mr Speaker, during my previous budget speech, I promised your house to present an NTI restructuring plan, upon its approval by the relevant authorities. The Executive Council has approved the restructuring plan in September 2002, and same was forwarded to the National Minister of Transport who has in turn approved it during January 2003.06.24

I herewith announce the principles the envisaged outcomes and the process underlying the restructuring plan:

Issues and Principles:

* The process will entail negotiated contracts being entered into with North
* West Star, for all five business operations. The operations will then be sold as stand-alone business entities on a competitive tender process. The process of selling the North West based operations will begin immediately, the sales of Gauteng based operations will follow in the foreseeable future. North West Star will be sold last with, either Bothlaba or Botswana Gare as its sole remaining operation.
* The North West Provincial Government and North West Star will enter into 5 year (7-year when legislation is passed) negotiated contracts for the Far West, Thari and Tlhabane operations, with suspensive conditions whereby the contract only becomes effective on date of sale ("suspensive conditions"). The subsidy is to be maintained at current levels (possible marginal increase) and will include scholars' subsidy.
* Similarly, the Gauteng Provincial Government and North West Star will enter into 5 year (7-year when legislation is passed) negotiated contracts for the Bothlaba and Botswana Gare operations, with suspensive conditions. The subsidy values will be at market prices.
* The sales are to be done on a going basis. This means that all assets, including the negotiated contracts, as well as post judicial management liabilities are sold. Similarly the staff is transferred on existing terms and conditions of employment, under section 197 of the Labour Relations Act.

Envisaged Outcome:

* Sufficient money will be raise from the sale of the business operations to repay pre-JM creditors or to do a S311 compromise and remove North West Transport Investment and North West Star for judicial management;
* Achievement of black economic empowerment, though the sale of all five-business operations suitable private operators who meet the HDI requirement as prescribed in the NLTTA;
* NTI transport system will be fully integrated in a cost effective manner and NWS bus services will operate at optimum levels of cost effectiveness and efficiency, in accordance with the standards and requirements of the NLTTA and its regulations;
* Employees' jobs are protected and afforded protections in terms of the LRA;
* Undisrupted provision of public bus transport services in the regions currently serviced by NWS; and
* Government will divest their interest in NTI and NWS.

The development of the Provincial Land Transport Framework includes a number of strategies and projects earmarked for the implementation and achievement of the broad objectives of a well managed, structured, safe and affordable transport system in the Province. One of these strategies that is a high priority to the department is the matter of non motorized transport, including an appropriate legislative framework, cross border cooperation with the Northern Cape Province and a coordinated structure between the Departments of Transport, Economic Development and Tourism and Educations to ensure that the project will reach the targeted community members and specifically scholars and also the ensure that those benefiting from this process would be educated to become effective road users, thereby contributing to effective road use in the Province as well as enhancing SMME development in the distribution and maintenance of the non motorised transport such as bicycles. Furthermore, it can be mentioned that the Cyclist Federation of South Africa are advising the Department on appropriate designs of bicycles.

The Department with the assistance of the South African Bureau of Standards (SABS) is in the process of developing design standards for animal drawn carts. This will incorporate features that should improve safe road usage.

Transport Authorities have in the past been a neglected area and have been identified as a key institutional arrangement for effective management of public transport functions in the Province. This aspect has been clearly addressed in the legislation and although a competency of local authorities, pilot project will be launched during the new financial year to lead the process of a full rollout.

A key aspect in the Stellenbosch resolutions is the provision of infrastructure for the physically disabled. This will be addressed through a joint venture effort between the Department and the Provincial Disability Desk house in the Office of the Premier. CSIR are in the process of assisting the Department to advise this joint effort to address appropriate standards and designs to facilitate the movement and access of the disabled.

The further empowerment of the Taxi Industry remains a key project of the Department. Mr Speaker you will recall that the empowerment initiative of the North West Province Taxi Industry was officially launched on 18 September 2001. During this launch and more specifically during my budget speech for the 2002/2003 financial year, I emphasised the critical importance to succeed with this initiative. I further indicated that success on this initiative was non negotiable and I called upon my Department, the Taxi Industry and the appointed Service Provider for their total commitment, dedication and effective management to ensure success.

This initiative has at its heart the effective structuring and capacity of the Industry, as well as interim Government financial and technical support of the Taxi Industry aimed at a viable Taxi Industry that will stand on its own feet by 1 April 2005.

Let us be proud and grateful for the success achieved, but, let us also be fully aware that the process has now entered its most critical stage namely the rollout of business ventures and the implementation of sound business management approaches to lead the Industry over the next two years to meet the critical date of 01 April 2005. Let us not underestimate the complexity of the process. I want to state that I will be even more severe during this year in closely monitoring progress on this process to ensure success. May I repeat that the success of this process is non negotiable.

The Taxi Retail Installation (TRI) programme is in full swing. This is the first "real" evidence of achieving the ultimate objective of this initiative to empower individual Taxi Operators in our Province through the co-operative collective bargaining business initiative and will provide the Taxi Industry in our Province with a capital investment of R29 million, of which the department is contributing R10 million for the current financial year, Caltex, the private partner recently appointed by the Provincial Tender Board contributing R12, 5 million and the Taxi Industry contributing R6.5 million. A projected annual operational turnover of more than R15 million is expected. This approach further provides for an interim approach of utilising existing fuel outlets to ensure speedy start of business while planning and construction of the TRI's is proceeding.

The further rollout of the TRI development process beyond fuel supply is critical. I want to call on local authorities and my fellow Government departments to assist the Taxi Industry in the acquisition of appropriate land for TRI development purposes. Tenders will be developed and issues during this financial year for various components of TRI development. These business ventures will focus in the first instance on the Taxi Industry but also on commuters and the broader public.

With regards to the year ahead, the Department and the Taxi Industry have agreed that the focus will be on the following areas:

Implementation and further refinement of effective management and administrative processes and procedures based upon the principles of good corporate governance. The operations of the representative structures as well as the economic arm of the Industry will be guided by the performance contracts and supported Business Plans agreed between the Industry and the Department. Monitoring will be through a process of monthly management reports and quarterly performance reviews measuring actual performance as against financial progress. The Department agreed with the Industry that Government funding will be phased out over a three-year period. It was further agreed that Government funding would be released on the principle of "no performance, no financial support" will be adhered to and is not negotiable. I have instructed my Department to see to it that this principle is fully endorsed and complied with.

The structured participation of the Industry in the management of transport matters in our Province will be given specific focus as provided for in the Provincial Transportation Bill and Provincial Land and Transportation framework. It is critical that the Industry, which transports more than 70% of the people in our Province, should take its rightful place in the management of the transport affairs of our Province. I want to call on Regional and Local Authorities and on the Taxi Industry to ensure that this interaction is formalised and structured. May I make a specific plea to the Taxi Industry for their co-operation on the special initiative on road safety and Arrive Alive.

Specific provision will also be made for the proposed rollout of the Recapitalisation process and the Electronic Monitoring System envisaged to be launched during this financial year. I want to send a clear message to all Taxi Operators in the Province - "RECAP is coming and it is here and those who do not work with us to register for tax will be left behind".

Capacity building of the leaders as well as members of the Taxi Industry is of critical importance and is now structured through the taxi chamber of the Transport Education and Training Authority. The Province is honoured to have a member from this Province elected as the chairperson of the taxi chamber, i.e. Mr. David Mqaba. Our congratulations to Mr. Mqaba on this appointment and our best wishes on this important task. The Department has signed a contract with Transport Education Training Authority, (TETA) for the facilitation of all Taxi Industry capacity building related projects in the Province. We are committed to providing the Industry and TETA with full support to ensure the implementation of a coordinated and focused training plan for the Taxi Industry in the Province.

In addition the Department of Transport in collaboration with the Taxi Industry has embarked upon the process of converting the old taxi permits into public transport operating licenses. This process includes the development of regulations, which has been done and published, followed up by the actual conversion by the Provincial Licensing Board which is targeted for completion during the 2003/2004 financial year.

In line with the National Land Transport Act (No. 22 of 200), the Department in collaboration with the Provincial and Regional Taxi Councils jointly agreed to proceed with processes of engaging Taxi Operators to comply with the requirements as stipulated in the Income Tax Act of South Africa. This process does not only address the tax registration of Taxi Operators but will also assist the Taxi Industry through aggressive capacity building that is intended to assist the Industry in comprehending the tax laws and regulations of South Africa. This project as embarked upon by the Department commenced during December 2002 and it will be completed during the latter part of 2003.

The tax registration of the Taxi Operators in the North West Province is indeed an important milestone achievement that will greatly assist the Taxi Industry to readily benefit from the Recapitalisation Programme initiated by the National Departments of Transport, Trade and Industry and Treasury as supported by the relevant Provincial Departments.

Government has committed itself to provide the Taxi Industry with technical support through its Directorate of Land and Air Transport Services and the services of an appointed Service Provider. It will make financial support available according to the signed agreement to the Industry for its estimated operational costs i.e. the representative structures and the Co-operatives as well as a further capital investment of R10 million in the Co-operative structures dedicated to capital development in joint venture with the private sector. Government remains committed to this critical initiative to empower the Taxi Industry in the Province. I expect the Taxi Industry to provide its full support and commitment to this process. I expect the Department and the appointed Service Provider to be full committed in their efforts to contribute to this process. I will be even closer to this process during this year and will formally interact with the Taxi Industry and the Private Sector on a regular basis. Mr Speaker, I re-emphasise that the success of this process is "non negotiable" and no failures will be tolerated. Those that fail will be left behind. I am confident that the foundation laid solid and that this process in our Province will be further enhanced during this year as role model for South Africa.

In keeping with the Batho Pele principles, the Department has initiated a process of establishing satellite offices for issuing of public transport permits/licenses in order to improve accessibility and to provide a better service on a more cost effective basis to the public transport operators. The further rollout of Satellite Operating Licenses Offices will be in Rustenburg and Taung during this financial year.

Section 44 of the National Land Transport Act (No. 22 of 2000) stipulates that all scholar transport operators must be regularized and granted operating licenses to transport pupils and students. However, it is common practice in many Provinces for pre-primary and primary scholars to be transported using Loading Delivery Vehicles (LDV's) popularly known as "bakkies". A study carried out by my Department during 2001 indicated that out of the approximately 800 unauthorised scholar transport operators in the Province, more than 50% of the vehicles uses were LDV's.

As the MEC for Transport in the North West Province, I would like to express my concern at the use of the so-called "bakkies" as a mode of transportation for public passengers. The accident statistics of 2002/2003 festive seasons show an upsurge in the increase of accidents caused by the use of LDV's as a mode of public passenger transport, with an alarming 45% of the deaths being attributed to the use of these vehicles. We must be mindful that these Light Delivery Vehicles were intended for the sole use of the delivery of goods and cargo and not, for the transportation of human lives, especially the transportation of small children who are considered the most vulnerable and fragile sector of our community.

It is with this in mind and in keeping with the National Land Transport Transition Act that my Department has begun a process of regularising and formalising the transportation of scholars. These regulations will include, inter alia, strict stipulations on the types of vehicles that will be legally approved to transport scholars. I would like to urge all parents, teachers, school governing bodies and the community at large to support my Department in our process of formalising scholar transportation by adhering to the use of legally approved vehicles as a means of public transport for school going children. I would also like to call upon the scholar transport operators to use vehicles approved by the South African Bureau of Standards and Government.

The Department of Transport is however mindful of the reality existing in certain exceptional areas where non LDV's cannot be used due to bad geographical conditions. My Department in collaboration with the South African Bureau of Standards will n the absence of good roads infrastructure, stipulate the necessary specifications required for LDV's to be declared as legal scholar transportation vehicles in these areas.

Programme 9: Community Based Projects
Programme 9: Community Base Projects is allocated R 19,000 million

A key sub-programme under this programme is the Rehabilitation of Taxi Ranks and facilities. This will be based on the Current Public Transport Records. Mr Speaker you will appreciate that R 12 million is not sufficient to cover all facilities, especially where there is a mammoth need in the rural areas for shelters. However, I can announce that the rank at Zeerust will be the first to be addressed and our target is to complete the construction by December 2003. It should be noted that this would be the first rank in the North West Province, specifically designed to provide access for people with disabilities.

R 5 million of this programme is earmarked for upgrading of Drivers License
Testing Centres and Vehicle Testing Stations.

As mentioned earlier as part of the key priorities under the Programme: Revenue, an amount of R 2 million is set aside for the implementation of the Best Practice Model.

Conclusion

In conclusion, Mr Speaker, we have recorded impressive performances in the previous year (2002/3), we are committed and have what it takes to even do better in the New Year (2003/4). We will work even much more harder; we will be steadfast, resolute and focussed in service to our home, the North West Province of South Africa.

We will give special focus on the following key policy issues:

* Use state owned transport assets to ensure growth and development strategies
* Develop rural transport network through exploring various transport solutions, including motorised and non-motorise transport systems
* Pursue Taxi Recapitalisation Programme and the empowerment of taxi operators
* Create a Safe, Reliable and Affordable Public Transport System in response to the Spatial Structure and Poverty
* Restructuring of the North West Star (Pty) Ltd and Government Motor Fleet in order to improve service delivery and create Public Private Partnership within the Black Economic Empowerment
* Carefully craft a rural social transport service to cater for the poor

As I start my tenth year as MEC for Transport, I look back with unparallel pride imbued with happiness that I served my home - the North West Province of South Africa well. I could have done more but my achievements, that of my Party - the ANC and the stakeholders of Transport have done the populous the tide has definitely turned. Transport is not the same anymore. It is better now.

Mr Speaker, I wish to thank the Premier Dr Simon Popo Molefe for his leadership, my colleagues in EXCO for their support at all times, Hon Percy Dyonase and Hon George Madoda, the Chairpersons of the Standing Committees for Roads and Public Works and Transport respectively, the members of the Provincial Legislature, the members of the said Committees and all our stakeholders who have a real partnership with us.

To my dear wife Shirley, my four daughters and only son - thanks for your home care based support!

Last but not least, I would like to thank the Head of Department - Mr Nic van Staden, Senior Management, the Supervisory Staff and the general members of our staff the Department of Transport for the commendable work and impressive achievements during the past financial year.

My word of advice to the entire staff is that the last lap determines the winner. Put greater effort. Remain steadfast and committed not to me but rather the future of our Country. Refuse to see the shadows of darkness of the deep scary night but rather the stars that provide light and direction to our destiny - the future of my home, North West Province of South Africa. Yes, the tide has turned! I am confident that the new financial year will bring even greater successes for our Department.

I thank you!

Issued by North West Provincial Government

3 April 2003