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26 March 2008

Chairperson and Honourable members

At the extended Cabinet Lekgotla in January 2006, the national government, together with Premiers and the South African Local Government Association (Salga) adopted the five year Local Government Strategic Agenda (2006 to 2011). Three strategic priorities were adopted to define the nature of our work in strengthening our overall system of local government.

These priorities were:
* mainstreaming hands-on support to Local Government to improve municipal governance, performance and accountability
* addressing the structure and governance arrangements of the State in order to better strengthen, support and monitor local government and
* refining and strengthening the policy regulatory and fiscal environment for local government, and giving greater attention to the enforcement measures

Today, the Local Government Laws Amendment Bill before this house must be seen as part of our implementation of the third strategic priority which is about refining and strengthening the policy, regulatory and fiscal environment for local government. Refining the policy environment for local government is an intrinsic part of the commitment on the part of the Department of Provincial and Local Government to ensure that local government delivers services to the people. The Local Government Laws Amendment Bill, 2007, is one important step in this direction. As you may be aware, other processes will follow. For example the House will be aware that a significant policy review of provincial and local government is currently under way under the stewardship of the dplg.

In general, the Local Government Laws Amendment Bill effects amendments that refine, adjust and align core local government legislation such as the Local Government: Municipal Demarcation Act, 1998, the Local Government: Municipal Structures Act, 1998, the Local Government: Municipal Systems Act, 2000, and the Local Government Municipal Property Rates Act, 2004. It also repeals legislation that has become redundant.

The policy intentions of the amendments contained in the Bill serve to, among others,
* improve fiscal alignment, planning and budgeting
* promote the uniform interpretation and application of the law
* enhance performance management in local government
* further refine and remove impediments in the implementation of municipal property rates
* promote practices in good governance and
* ensure alignment among legislation pertaining to local government.

The dplg welcomes the additional amendment adopted by the Select Committee on Local Government and Administration that strengthens the role of ward committees in public participation. The Bill that was presented to the select committee provided for a significant improvement to the role of the ward committee to further deepen democracy and community involvement in local development projects. The select committee has added to this improvement by now making it possible for the members of the ward committee to elect a chairperson of the committee instead of the previous dispensation where the ward councillor was, by law, the chairperson of the committee.

The select committee also has aligned the term of office of the ward committee with that of the term of office of a council (i.e. five years) making for greater stability in the administration and life cycle of the ward committees.
Other matters deliberated on by the select committee ensured greater alignment of the participation of staff members in elections with the Public Service Amendment Act, 2007. Furthermore, the Bill defines the meaning of a “close family member” when providing for the involvement of municipal staff and political office bearers in procurement matters, strengthening the role and involvement of the National Council of Provinces (NCOP) in matters relating to non-performance and mal-administration in municipalities, and providing for flexibility in dealing with matters relating intergovernmental planning and the demarcation of boundaries and the adjustment of the division of powers and functions between district and local municipalities.

I want to appreciate the important role that the NCOP continues to play as an integral part of the democratic process as envisaged by our Constitution. In this regard I would like to thank the members of the select committee on local government, under the able leadership of Mr Sicelo Shiceka, for the lively discussions, and for managing a consensus on key matters among affected stakeholders on some matters of the Bill. I would also like to thank all stakeholders who provided useful comments and insight on various clauses of the Bill. I urge all members of NCOP to vote for the adoption of the Bill so that it can now follow the processes for its final deliberation by the Portfolio Committee on Local Government of the National Assembly.

I thank you.

Issued by: Department of Provincial and Local Government
26 March 2008
Source: Department of Provincial and Local Government, (http://www.dplg.gov.za/)