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11 April 2006

1. Introduction

Mr Speaker and honourable members, the common perception amongst people is that my Department is a subdivision of pensions set to alleviate people’s poverty status through the issue of social grants. Indeed, the priority for government is to put in place programmes and policies to lessen the plight of the poor and the social security programme has been but one of those programmes under my Department. However, there has been a realisation that social security provides short term relief to people but what is required are long term, sustainable development initiatives in order to promote self reliance and beat poverty. In a developing nation and young democracy such as ours, we are indeed fortunate to have the opportunity to provide a range of integrated social welfare programmes for the most vulnerable members of our community.

Our vision remains that of “promoting self reliance, sustainable development and beating poverty.” Due to the transfer of the function of social security to the South African Social Security Agency (SASSA), it became imperative for the Department to reposition itself for expansive, effective and efficient service delivery for the future.

2. New strategic focus

Our strategic focus has been revised to ensure that we consciously create mechanisms that protect, empower and give a voice to our most vulnerable citizens so that they become effective participants in the development system and architects of their own future. In this context it is important to emphasise that the strategy is fully aligned with government’s commitment to accelerate service delivery and with the overall goals of coherence, cost effectiveness and customer service as spelt out in a variety of documents that guide the delivery of services by the Department.

The focus should and must be seen as one critical element in the creation of an integrated public and private developmental social service which is responsive, customer driven and sustainable in the long term. This has also conscientised us to seriously consider the review of the current name of the Department, to be aligned to the new paradigm shift.

The goals embodied in the strategic plan of the Department are:

* provision of leadership on social development to ensure the deepening of the social policy discourse, policy development and review

* monitoring, evaluation and research to ensure evidence based decision making

* create an enabling environment for social and human capital investment

* prioritisation of social protection initiatives to build the capacity of vulnerable groups through social integration

* promote good governance.

3. Accomplishments for 2005/2006

3.1 Programme one: Administration

One of my priorities in enhancing the Department’s outreach to communities was to ascertain first hand information of community needs and concerns. This process was undertaken through 19 community izimbizos, pension pay point visits, soup kitchens and office visits. Following my visits, I thereafter commissioned my senior management to address the pertinent issues at management meetings, review of the Department’s strategic plan and operational plans.

Some highlights of community events include:

* In conjunction with the Minister of Social Development, Dr ZST Skewiya, we launched the initiative to address vulnerable children at Edendale and the extension of the Child Support Grant (CSG) at Ndwedwe.

* Celebration of Older Persons Day in the Nsingweni Area at Ngoye.

* World Population Day at Underberg.

A one to one interaction with community members was facilitated through radio talk shows on a fortnightly basis. Again this proved to be beneficial especially in promoting the services of the Department and obtaining feedback from the communities.

In the course of the reporting period we implemented Operation Phothula as a turn around strategy to improve the delivery of social grants. This programme owes its success to co-operation with other departments, namely the departments of home affairs, health and justice. My sincere appreciation goes to these departments. I would also like to thank those honourable members of this House who supported this initiative by attending the ten Operation Phothulas. I would also like to add my special gratitude to all the employees of my Department who have displayed rare dedication and selfless commitment to make this initiative a resounding success.

Mr Speaker and honourable members, my Department has in the past years been negatively criticised on over expenditure. It gives me great pleasure to report that for the first time we have remained within budget during the past financial year.

Strengthening of administration continues to be a priority. In terms of our management of human resources, we have revised policies on transfer of staff within the Department, sexual harassment, protective clothing, retention and exit management and employee wellness. In addition, the Department’s human resource and service delivery improvement plans have been finalised and implemented. In addressing the backlog of misconduct cases 59 cases have been finalised.

In addressing the scarcity of skills in social work, the national Department of Public Service Administration, approved the implementation of the regarding and recruitment strategy for social workers. As a province we have begun to implement the strategy with an upgrade of salaries for social workers, planning for learnerships of 260 social auxiliary workers and granted bursaries for student social workers from rural impoverished families.

The revision and finalisation of the Department’s organisational structure also became necessary with the relocation of the function of social security to the SASSA. Over 1 095 permanent and 250 contract staff will be transferred.

The Department has also been able to identify our accommodation requirements for the Department’s head office in Pietermaritzburg. My office together with the office of the Acting Superintendent-General (ASG) and core senior management staff currently operate from leased premises at Main City Building and Bramhill House in Pietermaritzburg. Arrangements are in progress for the remaining staff to relocate from Ulundi to Pietermaritzburg.

Our capital projects have been limited during the last year. We were able to take occupation of new offices in Vulamehlo and uMsinga. Renovations were undertaken at Valley View Place of Safety to make provision for the establishment of the secure care facility. Whilst office accommodation continues to remain a challenge for the Department interim arrangements have been provided by the purchase of 32 park homes.

3.2 Programme two: Social security

Mr Speaker and honourable members of the House, social security has been the main programme of my Department since its inception. The House has already been appraised of the relocation of the functions of social security to the national social security agency. The funds for the function have already been allocated to the national sphere of government and therefore do not form part of the provincial equitable share for the 2006/07 financial year.

Amidst attending to the finalising of the transfer of the functions, the highlight in this programme was the implementation of Operation Phothula as part of the change management strategy for improved service delivery. Launched in July 2005, 50 000 people have been seen during these open days and 36 418 cases finalised.

However, it is of concern that despite these measures being implemented by my Department the trend of litigating does not seem to have stopped. My Department terminated the contract with the State Attorney in May 2005 and employed private attorneys to assist in addressing this onslaught. From the time of appointment these attorneys have attended to twenty five thousand one hundred and fifteen cases lodged in the Durban High Court and 6 320 in the Pietermaritzburg High Court. While these numbers are of extreme concern an achievement over the past year is that 93 cases in the Durban High Court were dismissed, while the Department has also had costs orders made against some of the litigating attorneys. In addition, two attorneys have been reported to the law society for unethical practices and criminal charges have been laid against one attorney.

Mr Speaker, in addressing the backlog a total of 224 758 applications has been finalised. In ensuring that the processing of applications is managed to prevent the reoccurrence of a backlog, a pilot project was initiated in four district offices in March 2006 where the complete process for a grant application will be undertaken at the local service office.

With regard to the management of the temporary disability grants 85 percent of the total of 125 905 were attended to resulting in the suspension of 59 198 grants. This generates a saving of approximately R43,8 million per month.

During the 2005/06 financial year a total of 211 appeals board sittings were held, during which 18 565 appeals were attended to. Of these 7 510 (40,45 percent) were approved, while 10 592 were dismissed. A total of 463 were referred for additional information. The average number of appellants seen at each appeal board sitting was 88.

Mr Speaker, it is known that social security forms a primary source of poverty alleviation to the poorest of the poor. Over the past year our statistics reveal that the number of grants in payment represents a total increase of 8,8 percent overall and a 23,65 percent increase for children.

3.3 Programme three: Welfare services

My concern has been the continued crisis around the increasing number of challenges faced by our vulnerable groups especially in rural areas of the province. In particular, children needing alternative care appear to be increasing steadily and hence necessitating that we constantly review our services in this area. In the last year we paid particular attention to the conducting of quality assurance assessments at residential facilities, put in place systems and processes to manage the foster care backlog, established one 134 early childhood development centres mainly in the rural areas of the province, increased subsidy tariffs to these facilities and appointed a service provider to develop programmes for street children at shelters.

In addressing crime particularly that initiated by children and youth we have begun the process of establishing secure care facilities around the province. Valley View Place of Safety has undergone renovations and is now ready to admit awaiting trial boys. This process has been enhanced with the further process of establishing four secure care centres through Public Private Partnerships (PPP). This process is facilitated by both provincial and National Treasuries. It is expected that as this is a pilot project for the country, we will be setting benchmarks to develop this into a best practice model to be replicated nation wide.

The 17 Reception, Assessment and Referral Centres throughout the province have prevented 800 children from entering into the criminal justice system. Coupled with this is the home based care supervision project which was piloted resulting in 144 children who would otherwise be detained in prison being placed under supervision. We have also increased our staff compliment by 39 probation and assistant probation officers to deal with probation services.

Whilst remaining focused on the care of children we have now reopened South African National Council on Alcoholism and Drug Dependence (SANCA) and outsourced Khanyani Treatment Centre to SANCA. This is a much needed in patient treatment centre for children with substance abuse problems in Newcastle.

Older persons continue to play a vital role as caregivers to children in distress. In adding some measure of comfort and promoting socialisation in the community, we have initiated 53 new luncheon clubs in the province.

I am sure that the increasing abuse of women and children shocks us all. We need to pull out all stops to ensure that this is brought to a halt and empower women in these circumstances. To this end my Department has increased its support for abused women in the province by funding six new shelters.

The mitigation of the impact of HIV and AIDS is a provincial priority, calling for us to work together in its reduction. The implementation of community care centres through the National Integrated Plan for Children and Youth (NIPCY) infected and affected by HIV and AIDS has thus far assisted over 15 000 beneficiaries. The significant impact of these community care centres has been primarily the strengthening of the affected family unit, by ensuring that children are kept within their communities and supported in their education and their health needs are met.

This service continues to be strengthened on an annual basis with the intention that we should have at least one centre in each local municipality. We currently support 53 community care centres and have also introduced the Isibindi Model to strengthen these facilities. This model assists children affected by HIV and AIDS. Beyond the achievements already mentioned, the Thandukuphilia Community Care Centre at Nseleni was fortunate to be part of the anniversary road show for the Expanded Public Works Programme (EPWP) focusing on home community based care. In extending accolades to the untiring efforts of the volunteers at this facility the Minister of Public Works, Ms Stella Sigcau, has pledged to replicate the practices of this facility throughout the country.

3.4 Programme four: Development and support services

Mr Speaker, as provincial departments we all have the responsibility of reducing the plight of our poorest of the poor through sustainable initiatives that will enable their transition from the second economy to the first economy. With the noble pronouncements made by the Department of Economic Development we embarked on the redesign of programmes targeting the poor. We have developed a community development strategy, setting for the Department, a niche from which we will operate in alignment with the pronouncements. The strategy spells out core functions of community mobilisation, participation, capacity enhancement, facilitation.

Our progress in the implementation of the strategy has been a number of achievements some of which I will reflect on.

In the area of youth development we have mobilised 2 392 youth in 13 areas of the province. Of these we have already commenced with skilling 350 youth in a variety of life and technical skills. I am pleased to report that, although to many these numbers may appear minimum, 20 youth have already secured either permanent or casual employment. In particular a total of 10 have been employed in the construction and catering industry and two have secured learnerships through the Department of Local Government’s Community Development Worker Programme at Nkandla. Other spin offs from this process include the formation of a youth co-operative in the Nkandla area which has been registered on the list of service providers for the Department of Arts, Culture and Tourism in preparation for the 2010 World Cup.

The linking of youth to learnerships offered in terms of the EPWP. In this year we were able to as the lead Department for the social sector a strategic partnership with Umsobomvu Youth Fund, the European Union (EU), Department of Labour and the health and welfare Services Sector Education and Training Authority (SETA) a sum of 55 million rand to draw in 605 youth into learnerships for Home Community Based Care (HCBC).

Mr Speaker, in as much as we are criticised for having commenced with a number of piggeries, poultry farms and vegetable gardens we have found that when mobilising the poorest of the poor, it is difficult to engage them in development without ensuring that they have food in their stomachs. Through our initiatives in the establishment of sustenance projects we have been able to develop 14 of the 47 departmental projects into registered co-operatives in the province. As part of the 79 national funded poverty projects, we have undertaken a verification exercise and begun to implement an exit strategy. The strategy is executed in partnership with stakeholders like the Department of Trade and Industry, provincial departments of agriculture and economic development and the National Development Agency (NDA). Thus far 15 of the 79 projects have commenced their exit to other long-term sustainability opportunities.

As a Department we were not able to roll out in terms of the National Food Emergency Programme (NFEP) with the provision of food parcels, due to a ruling of the Pietermaritzburg High Court against the national Department of Social Development. The matter is currently at the Appeals Court in Bloemfontein.

We have nonetheless provided funds for the provision of cooked meals to 24 soup kitchens or community care centres, to ensure that the infirm have food on a daily basis.

In meeting the provisions of the Conditional Grant (CG) for the Integrated Social Development Services Grant (ISDSG), the Department has been able to maximise on its services through the initiation of several welfare services programmes in 40 communities with particular focus on the prevention of social crime, older persons, substance abuse and domestic violence, programmes for street children, awareness programmes for children with special needs and for people with disabilities. We were also able to extend our interventions in the poverty alleviation projects by funding a further 18 projects.

Mr Speaker, the EPWP is also a priority in terms of the President’s State of the Nation address. In compliance, my Department has been spearheading the social cluster departments in the development of an implementation plan for the sector. The plan sets out an integrated plan for the reduction of unemployment and providing livelihoods for the poor, women, youth and people with disabilities in the two pilot areas of Home Community Based Care (HCBC) and Early Childhood Development (ECD).

3.5 Programme five: Population development and demographic trends

The Department continues to rely on empirical research analysis not only to engage in new programmes but also to undertake continuous assessments and review of the impact of our current programmes.

In the last year we have replicated impact assessments at six community care centres. In conjunction with the United Nations Population Fund Activity (UNPFA) a study on gender based violence has commenced as well as rapid appraisals on the current status of activities at community care centres. Mr Speaker, you will no doubt agree with me that these studies form the basis for us to render an informed service.

This programme continues to market its services not only to sister departments but also to the community at large. In July 2005, we commemorated World Population Day which was attended by more than 5 000 people.

4. Priorities for 2006/07

Mr Speaker, although I have alluded to the fact that the social security function is now a national responsibility I would like to inform the honourable members that at least initially in the 2006/07 financial year, my Department will remain responsible for the function in terms of an agency agreement entered into on 27 March 2006. In terms of this agreement my Department will act as an agent for the SASSA, while work continues on the complete transfer of the function. Initiatives which were started in the 2005/2006 financial year to improve service delivery will continue. The primary project for the new financial year will be the roll out of the “one stop” service where applicants for grants have all the processes from application to approval completed on the same day. This project was initiated during March 2006 and is already starting to produce very positive results. Since inception until 29 March 2006, with the project in place at four district offices, a total of 1 872 applications have been taken and processed to finality. A plan for the progressive implementation of this process will be developed and implemented over the course of the year, in line with the provision of additional resources.

Mr Speaker, the resultant move of the social security function to SASSA has inevitable resulted in the reformatting of the budget allocation by National Treasury to three programmes in the Department, namely administration, welfare services and development and research. The latter is the result of the merger of the former development and support services and population and demographic trends programmes.

In presenting the Department’s priorities for the forthcoming year we have refocused our services to operate in line with the District Municipality co-ordination model and work according to four district municipality clusters. In essence, Mr Speaker, we will finally move away from the Magisterial District co-ordination model thus enabling productive engagement with all stakeholders in this approach.

4.1 Programme one: Administration

In meeting our commitment to strengthening administration within the Department, we have identified the following priorities for implementation:

* finalise the appointment of the Head of the Department
* finalise the appointment of a Chief Financial Officer
* finalise the relocation of all Head Office staff to Pietermaritzburg
* implement a management information system
* phase in the revised organisational structure within available funds
* develop a service delivery model for administration. This will be undertaken in conjunction with the national Department of Public Service Administration
* finalise the general retention strategy for all staff
* develop a communication strategy
* implement supply chain management
* aggressively market the Department in terms of its revised focus
* develop strategies, policies and guidelines aligned to relevant mandates including the finalisation and implementation of the KwaZulu-Natal Welfare Bill and the KwaZulu-Natal Social Development Bill
* consolidate all existing toll free numbers within the Department into one comprehensive, effective call centre.

As a Department, we acknowledge that the revised focus and modus operandi will not be without its own challenges. We have already identified that the current budget will not accommodate the immediate phasing in of the proposed district co-ordination model. Representations will be made to Provincial Treasury for an increase in the Department’s budgetary allocation.

4.2 Programme two: Social welfare services

Being the main core function of the Department, we will enhance services to all vulnerable groups with the expansion of services especially in under resourced areas. This will include the establishment of community facilities for children and older person. We also intend to make headway on the current Public Private Partnership (PPP) in respect of secure care centres and establish one in each of our four district clusters.

In ensuring maximum utilisation of premises owned by the State, the Department intends to:

* Undertake renovations at the Newcastle School of Industries to provide a comprehensive service to children with behaviour difficulties, including school of industries, a reform school, secure care centre and substance abuse treatment centre. This will be done in partnership with the Department of Education and will provide a new model in the country.

* Renovate the hostel donated by Eskom at Ingagane to provide a place of safety for the Midlands Region.

* Implement the proposed transformation plans for KwaBadala Old Age Home at Nkandla, Newlands Park and Madadeni Rehabilitation Centres.

Mr Speaker, we acknowledge the work undertaken by the private sector in the delivery of welfare services to communities. We have reviewed our subsidy scales to our partners and propose to implement an increase of between six percent and seven percent. Crèches, luncheon clubs for the elderly and shelters for abused women will receive a higher percentage increase.

Not withstanding that which I have already mentioned, my Department remains committed to improving our services to all vulnerable groups. In particular we will intensify our services to address the foster care backlog, establish a further eight community care centres for children infected and affected by HIV and AIDS and four drop in centres for children living on the street. Work will also continue on the preparation for the Child Justice Bill and the Children’s Bill

4.3 Programme three: Development and research

The reformatting of this programme to include research is in full support of the Department’s strategic objective to undertake monitoring, evaluation and research to ensure evidence-based decision making. We intend to:

* undertake a situational analysis of all our target groups

* conduct impact assessments of our current poverty relief programmes; the effectiveness of the strategy to migrate services to historically under serviced areas, community care centres and services to designated groups.

In addressing the further growth and development of our poverty alleviation projects we will continue to implement the exit strategy for these projects and through the increase in allocation for sustainable livelihoods, strengthen services to new and developing organizations. Simultaneously in the development process we will capacitate communities to enable their full participation towards entry into the first economy. This will include the identification of people to engage in programmes such as the EPWP.

5. Presentation of the budget for the 2006/07 financial year

Mr Speaker and honourable members, I now present to you the budget proposal for the 2006/07 financial year.

Programme - Percentage
1. Administration
R201,550 million (23 percent)

2. Social Welfare Services
R563,933 (63 percent)

3. Development and research
R129,327 (14 percent)

Total = R894,810 million (100 percent)

The budget for the 2006/07 financial year decreases from R13,605 billion last year to R894,81 million, a decrease of no less than 93,4 percent. This is attributable to the shifting of the social security function from the Department to the newly established social security agency at national level.

Mr Speaker, I want to emphasise that my Department has received no increase in its baseline allocation for the 2006/07 Medium Term Expenditure Framework (MTEF). However, the Department received an increased provincial allocation of R95,5 million through the inclusion of the Integrated Social Services Development (ISSD) and the HIV and AIDS national conditional grants to the provincial equitable share which will commence in April 2006.

5.1 Programme 1: Administration

The administration budget has increased from R162,9 million in the previous financial year to R201,5 million in 2006/07, an increase of R38,6 million (23 percent). However, compared to the adjusted budget of R194,6 million in the previous year the actual budget increase is R6 million (four percent). Mr Speaker and honourable members, this state of affairs indicates that my Department will have to put in abeyance plans for the maintenance of buildings and defer the construction of essential new buildings, primarily in the under resourced rural areas.

In my previous policy speech, I alluded to the critical shortage of personnel in my Department. In addressing this, the Department will not only strive to fill all vacant posts but to ensure that these posts are aligned with the approved organisational structure. It should be noted that the phasing in of the new organisational structure is dependent on the availability of funds.

5.2 Programme 2: Social welfare services

The welfare services budget of R563,9 million reflects an increase of 15 percent on the previous year’s adjusted budget of R491,5 million. In 2006/07 an increase is reflected for transfers and subsidies due to the implementation of a new programme structure as amended by the national Department of Social Development. The new structure includes the sub programmes of victim empowerment, HIV and AIDS, social relief and care and support services to families.

5.3 Programme 3: Development and research

The budget for development and research has decreased from the adjusted budget of R216,7 million in the previous financial year to R129,3 million in the 2006/07 financial year a decrease of R87,4 million (40 percent). This is due to the termination of the Food Relief Conditional Grant (FRCG) and the relocation of the HIV and AIDS Conditional Grant which is now under programme two. Development and research services undertaken by my Department are meant to provide sustainable development programmes which will elevate the poorest of the poor to a level of self-reliance.

Mr Speaker and honourable members, it is my pleasure and honour to now move that the amount of R894 810 000 be approved for the KwaZulu-Natal Department of Welfare and Population Development.

I thank you!

Issued by: Department of Social Welfare, KwaZulu-Natal Provincial Government
11 April 2006