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30 October 2008

Programme director
The MPL for KwaZulu-Natal (KZN) Legislature and MEC for Department of Finance and Economic Development, Dr Zweli Mkhize
Your worship, Mayor of Ethekwini Municipality, Mr Obed Mlaba
Chairperson of Chairpersons in KwaZulu-Natal (KZN) Legislature, Mr S N Mtetwa
Chairperson of Portfolio Committee, Finance and Economic Development, Ms Belinda Scott
HOD, Department of Public Works, Dr F B Madlopha
Senior management from government departments
Business leaders
Distinguished guests
I great you all

It is a great pleasure that we have gathered here today to engage on a very important activity. The presence of the MEC for Finance and Economic Development, Dr Zweli Mkhize and official of his department gives a clear indication that government departments work cooperatively to ensure a better life for the people. We are committed to create a conducive environment for economic development. The core functions of the Department of Public Works are infrastructure delivery and property management. In order to deliver on its mandate it is critical for our department to ensure that there is always consultation between itself and its key stakeholders which are contractors and property developers.

When I joined the department in 2006 I proposed that the department should find a way to improve its relationship with stakeholders. We then held road shows across the province and engaged with contractors and critical issues were raised by contractors. The lower grades in particular raised concerns about inadequate support from the Department and challenges regarding registration with Construction Industry Development Board (CIDB).

However it is unfortunate that it was only mainly contractors on lower grades who attended. This culminated to the introduction of Masakhe Emerging Contractor Development (ECDP) and the Construction Contact Centre, and this has dramatically reduced the level of frustration that contractors used to experience. We have also held youth and women in construction summits with a view of encouraging constructive dialogue between the department and contractors.

These summits are used as platforms for contractors to raise their concerns and make recommendations regarding our partnership. In the Women in Property and Construction Summit held at Empangeni in August 2008, the grade six and upwards contractors raised certain concerns. We then felt that it is crucial for us to organise this consultative meeting so that we listen attentively to these concerns. The purpose of this meeting is therefore to interact and continue with the dialogue so that we come up with resolutions as we go forward. Among the concerns raised in the summit were the following:
* sub-contracting policy
* a data base of sub-contractors
* lack of commitment by emerging contractors
* inclusion into Masakhe ECDP
* delays with CIDB upgrade for high grades

Another purpose of this meeting is to seek ways to form a partnership with well established contractors in terms of assisting the emerging contractors. We believe that there is a great role that the well established contractors can play in terms of empowering the emerging contractors. Furthermore, we wish to encourage compliance to construction and property transformation charters. This is very critical if we are serious about empowerment of the previously disadvantaged. The objectives of the Construction Transformation Charter are explicit about the outcomes envisaged. These includes among others:

* provide a framework for the construction charter to address bbbee.
* advancement of employment equity
* address skills development
* enhance entrepreneurial development
* lay the foundation for the integration of the construction sector associations to create efficiency.

On the other hand the objectives of the Property Transformation Charter includes among others:
* Unlocking obstacles to property ownership and participation in the property market by black people.
* Promoting property development and investment in under resourced areas.
* Achieving a substantial change in the racial and gender composition of ownership, control and management.

Therefore I wish to encourage you to embrace these charters and work in partnership with the government to ensure compliance because this will benefit all stakeholders in the industry. You need to provide support to the emerging contractors for to grow. I am optimistic that as we will engage in a robust and constructive dialogue we will eventually come up with resolutions which will take us forward.

I thank you.

Issued by: Department of Public Works, KwaZulu-Natal Provincial Government
30 October 2008
Source: Department of Public Works, KwaZulu-Natal Provincial Government (http://www.kznworks.gov.za/)