Chairperson, noticeable and positive changes have taken place in the sustainability and empowerment of previously disadvantaged contractors. Although trends have varied across various classes of work of the Construction Industry Development Board, CIDB, as well as contractor grades and ownership categories, the profile of black ownership of contractors has shown absolute growth between 2006 and 2009.
These are the details with regard to this growth: 11% in the CIDB grade 7 in general building. This has gone up from 2006, when 53% of black ownership in grade 7 in general building was recorded, to 65% currently. There were 20 black-owned contracting grade 7 enterprises in 2006, and there are 102 black-owned grade 7 contracting enterprises currently. There were 275 black-owned grade 4 contracting enterprises in 2006, and the number has risen to 597 black-owned grade 4 contracting enterprises currently.
Similar trends have also taken place in other CIDB classes of work, such as civil engineering, women ownership, youth and the disabled. Much of this growth can be attributed to government interventions, as well as interventions by the CIDB. These include, among other things, government's enhanced focus on infrastructure spending; government's targeted procurement policies, including the Preferential Procurement Policy Framework Act, PPPFA; the CIDB's support to government interventions; the strengthening of public sector infrastructure delivery capacity supported by the Infrastructure Delivery Improvement Programme, IDIP; targeting of contractors, made possible through the CIDB's register of contractors; procurement reform led by the CIDB and their procurement guidelines and practices; and encouraging contractor development of previously disadvantaged contractors through the construction contact centres, or triple Cs, established by the CIDB and Public Works.
Memoranda of understanding have been signed with financial institutions including First National Bank, Absa and Standard Bank - that is, three out of the four big banks. Specific interventions in the national emerging contractor development programme to support emerging contractors have been launched, using successful projects with eThekwini Metro, the South African National Roads Agency Limited, Sanral, and others. Thank you.
Before I continue with any supplementary questions, I recognise the President of the Senate of the Democratic Republic of Congo and his entourage. They are seated right opposite me in the Chairperson's gallery. [Applause.] They are on a bilateral visit to the NCOP during which we will be sharing some ideas on how to run our parliamentary issues. I wish them well during their stay in the country. Thank you, sir; we are honoured by your presence.
Stemming of job losses and increasing of long-term job opportunities
65. Mr Z Mlenzana (Cope) asked the Minister of Public Works:
(1) Whether his department has been able to stem job losses in respect of long-term and permanent employees during the past six- month period for which information is available; if not, why not; if so, what are the relevant details;
(2) whether his department has been able to reverse the trend by increasing long-term job opportunities either of its own accord or through discussion with the private sector, other government departments and/or agencies; if not, why not; if so, what are the further relevant details? CO226E
Chairperson, the Expanded Public Works Programme, or EPWP, is an important element in government's capacity to provide employment for the poor, who are not part of the formal labour market in South Africa.
This position was reinforced in the framework document for South Africa's response to the international economic crisis, which was adopted by Nedlac's social partners in December 2008. The EPWP prioritises programmes that provide regular, predictable and ongoing employment.
In the infrastructure sector, the programme is expanding on maintenance programmes that will provide ongoing employment. For example, the Zibambele programme in KwaZulu-Natal has been implemented successfully.
In the social, environmental and cultural sectors, many of these programmes are ongoing, since they provide the needed social and environmental services that are continuous and not time-bound.
The programme is also accelerating the roll-out of the community works programme. This is an innovative programme that involves local communities in deciding on the work that must be done and then selecting unemployed members of the communities, who are guaranteed work for two days a week. By the end of September this year, 223 552 work opportunities had been created.
The EPWP is designed to be a social safety net to cover people during periods of unemployment and provide work for those who never had the opportunity to work. It is common knowledge that the state alone cannot provide jobs, but it can create the enabling conditions for job creation.
Through the EPWP, the state consciously intervenes by delivering needed infrastructure and social services and, at the same time, provides an opportunity for the unemployed to earn an income through productive work by contributing to their communities. In some cases these jobs are short-term jobs, in that they are the product of government-designed infrastructure projects in a way that maximises the use of labour. This will allow people to be involved in the numerous infrastructure projects that are implemented across the country to address infrastructure backlogs. Thank you.
Chairperson, I would like to know, after these people have been trained in the EPWP projects, they are placed on a database through which they will later be able to find jobs? Thank you.
Chair, I would like to thank the hon member for the follow-up question.
Yes, before the programme starts. Let me give you an example. Last week, we launched the Food for Waste programme in Kokstad. Everybody who was registered to participate - 100 people were enrolled - underwent two days' training. This was necessary because, while one might think that it is easy to handle waste, there is hazardous waste as well.
So, it might be good if, via the committee in the NCOP, you ask our department to present the enterprise development that we have for EPWP projects. Allow me to give hon members an example of this: In the Working for Water project, 3 322 small co-operatives were formed, so it is not the end of everything once the government programme comes to an end. These people can provide a further service and employment for themselves by being entrepreneurs. That is already being looked at by Public Works. It is, however, a comprehensive and detailed presentation, which I think the committee should invite us to make. Thank you.
Chairperson, I just want to ask the hon Minister whether government is on track with the creation of 500 000 new jobs before the end of this year.
Hon Minister, I was just checking whether that really is a follow-up question. [Laughter.]
Yes, Chairperson. [Laughter.] I think the figure I gave was 223 522. That was at the end of September and, at that particular time, when we released those figures, there were another 80 000 that had to be verified. On the basis of those figures, I think the projections are clear that we are going to make our target. Thank you.
Details on eradication of mud schools programme 66. Mr Z Mlenzana (Cope) asked the Minister of Public Works:
(1) Whether his department or the government has (a) a programme and (b) a budget in place to rebuild schools that were built with mud bricks; if not, why not; if so, when will the rebuilding programme begin, especially in the Eastern Cape and Limpopo;
(2) what (a) are the relevant details for the rebuilding programme, (b) are the timeframes for the completion of the project and (c) amount has been budgeted for in respect of rebuilding each school? CO227E
Chairperson, I thank the hon member for asking this question.
Yes, there is a government programme for the eradication of mud schools and other inappropriate structures. This programme was identified as a national priority in the President's 2008 state of the nation address.
The national Department of Public Works does not administer the budget for the programme. However, a budget of R2,7 billion was initially allocated to the Department of Education over the 2009-11 MTEF period as additional funding for infrastructure development, with a particular focus on the eradication of unsafe, undesirable and mud structures through the EPWP. The Independent Development Trust, IDT, board of trustees approved a contribution of R150 million in 2007 for the eradication of mud schools.
The IDT has managed the implementation of this programme, which includes 39 projects across eight provinces. Of these, 26 projects, 16 schools and 10 toilet projects have been handed over to the education departments of the Eastern Cape, Limpopo, KwaZulu-Natal, Mpumalanga, Free State and North West.
To date, over 5 600 learners from pre-primary to Grade 12 have benefited from the programme, through the construction of 126 classrooms, 27 specialist rooms, computer centres, libraries, laboratories, multipurpose centres, early childhood development centres and 256 toilets.
The Eastern Cape department of education is also implementing a mud schools eradication programme that is not funded from the R2,7 billion programme and the IDT has been appointed as implementing agent for 45 projects. To date, 38 classrooms, 9 specialist rooms and 59 toilets have been completed. The total allocation to the IDT for this programme was R510 million.
To enhance the learning environment, the IDT is providing additional facilities beyond the normal construction scope, including computer laboratories in seven schools, furniture in 13 schools, waste water treatment to allow water recycling for irrigation in four schools, and solar power to three schools.
The implementation of the IDT-funded programme, including the additional facilities, will be completed during the 2009-10 financial year. The IDT has been appointed as implementing agent for five provincial programmes, of which four have confirmed budgetary allocations for this financial year. The total of that is R188,5 million out of a total national allocation of R800 million.
The IDT is currently implementing 53 projects, of which five have been handed over to the Department of Education, and of which 18 are currently under construction. A total of 19 classrooms, specialist rooms and 49 toilets have been completed to date.
The needs of each school vary considerably, with some schools requiring full reconstruction and others only the addition or replacement of certain buildings. Also, school sizes vary considerably, as do material costs due to location. Budget allocation is therefore based on a pre-assessment of each individual school's needs. I thank you.
Chairperson, I would like to ask the Minister whether he would consider it a nightmare if his department, the Department of Public Works, tried to get back the mandate of actually building schools - particularly in this programme - without negating the fact that the budget is with the Department of Education. Thank you.
Chairperson, I think it could be done by agreement. There is no other legal mechanism for us to do this because we must remember that they are concurrent functions. This particular function is a qualified function. In Schedule 4 it says that the provincial department of public works must provide that service.
There have been informal discussions between the national Minister of Education and me, and we are going to see whether we can have joint Minmec meetings where we determine how we can assist the provinces in the delivery of this. But it certainly wouldn't be a nightmare and I think it is something that we should do.
Allegations regarding National Lottery Distribution Trust Fund and inquiry into administrative challenges experienced
67. Prince M M M Zulu (IFP) asked the Minister of Trade and Industry:
(1) Whether his department has been informed of allegations in a media report regarding a certain organisation (name and details furnished); if not, what is the position in this regard; if so, what are the relevant details; (2) whether he or his department has put any measures in place to rectify the situation; if not, why not; if so, what measures;
(3) whether his department will consider conducting an inquiry with regard to the nature of administrative problems experienced by the recipient organisations in accessing lottery funds; if not, why not; if so, when will the inquiry be conducted;
(4) whether his department or the government has any plans to assist recipient organisations providing essential support services to needy communities, including children and HIV/Aids organisations, in the event of nonpayment of their grants; if not, why not; if so, what plans? CO231E
Chairperson, the Minister is aware of some allegations regarding the National Lottery Distribution Trust Fund, NLDTF, and the difficulties expressed by organisations in accessing the funds and receiving timely payments where grants have been approved.
Based on this allegation, the Minister initiated a round table meeting involving the National Lotteries Board, the distribution agencies and the Ministries responsible for sport, arts and culture and social development. At this round table meeting, challenges were identified, most of which were administrative in nature.
A subcommittee was established to propose measures to address these administrative challenges. The subcommittee agreed on a number of measures, including revising the grant management process to fast-track applications and facilitate speedy processing, as well as streamlining processes for approval of payments.
These measures are currently being implemented and are expected to bring about a significant improvement in the turnaround time. The other important measures relate to the speed with which inspections should be conducted, as payments are sometimes conditional. For a positive inspection report, the subcommittee recommended that the template for inspection be revised to be more focused on matters that pose a risk to the release of the grants and not be broad and general, as it currently is.
The subcommittee also recommended the strengthening of the administrative capacity within the National Lotteries Board to deal effectively with publications. These measures are currently being implemented by the National Lotteries Board as a measure to increase access to funds by needy organisations.
The Minister is in the process of issuing regulations to remove the requirement for applicants to provide audited financial statements for the preceding two years. This requirement has proved to be a hindrance to many needy organisations which may not have audited financial statements due to various factors, including the size of the organisation. Therefore the requirement will be relaxed, particularly for first-time applicants. The regulations are in the process of being consulted upon with various stakeholders and will be published for general public comment in due course.
Lastly, the department has enquired about a number of allegations made by organisations and these have been addressed. These enquiries are addressed on an ongoing basis, but with the process mentioned above, it is expected that these challenges will be addressed effectively.
The subcommittee has also recommended to the National Lotteries Board that it conduct an audit of all applications received to date in order to identify those that may be pending so that they can be attended to and finalised. The results will be made available to the subcommittee in December 2009. This will assist the department to address the cases that may be outstanding. I thank you.
Number of flights procured by Department and Ministry of Trade and Industry in September 2009
68. Mr T Harris (DA) asked the Minister of Trade and Industry:
(a) How many flights were procured by his Ministry and/or his department for use by departmental officials in September 2009, (b) what were the reasons for procuring each of these flights and (c) what was the total cost of all these flights? CO238E
Chairperson, I move that Question 68, which is my question, be converted to a question for a written reply. If you look at the question, it is not appropriate for an oral response. I would be quite happy to receive a written reply from the Deputy Minister.
And while I'm standing, let me add that on Question 69, the next one, I have had a word with the Chairperson about the reason it was scrapped from the Question Paper. He said he would get back to me but I just wanted to reiterate that that question was appropriate for oral response. For some reason, it was scrapped from the Question Paper. So I await a response as to why.
Hon member, for the benefit of all the members here, we will ask the Minister to actually give a reply to Question 68. [Interjections.] Mr Watson, do you have anything to say? No? Please proceed, Minister.
Chairperson, the reply is as follow: With regard to the first part of the question, 492 domestic and international flights are included. With regard to the second part of the question, the mandate of the DTI, particularly in relation to trade, investment and export promotion, requires extensive international interaction. In this regard, all travel was in connection with official business and executed in accordance with the departmental travel and transport policy and the guidelines in the ministerial handbook. Finally, with regard to the third part of the question, the amount is R3 549 599, 66. Thank you.
Discussion on agreements to deregulate operation of African airlines in the airspace of African countries
70. Mr R A Lees (DA) asked the Minister of Public Enterprises:
Whether she and/or any members of her department have entered into discussions with authorities of African countries and/or the African Union to secure agreements to deregulate the operations of African airlines in the air space of African countries; if not, why not; if so, what are the relevant details?