Hon Chair, hon Minister, hon special delegates and dear colleagues in the House, the Construction Industry Development Board Bill seeks to establish a statutory authority which is envisaged to co-ordinate nationally the transformation and development of the industry.
To quote the White Paper:
The CIDB will exercise leadership and foster the co-operation of industry stakeholders to pursue development objectives, improved industry practices and procedures - which will enhance delivery, performance and value for money, profitability, and the industry's long-term survival in an increasingly global arena.
There is no doubt that the need for creating an enabling environment, which the hon the Minister has referred to, for reconstruction, growth and development in the construction industry is being adequately addressed by the Construction Industry Development Board Bill.
Towards this end, the Construction Industry Development Board is to be established as a juristic person and given powers, functions and duties in line with its objectives. The CIDB will be the custodian and driver of the national vision and strategy for construction industry development.
Clause 4, for instance, specifically refers to the promotion of appropriate research, the implementation of Government policy with regard to the construction industry, the providing of advice to the Minister, the provision of consultancy services, establishment of committees, etc, for optimum performance.
Clause 6 of the Bill provides for the composition of the Board, which must consist of at least nine, but not more than 13, members appointed by the Minister. Members must be South African citizens and no political office bearer may be a member. These appointments must not only be sensitive to gender and reflect the demographic balance, they should also be consonant with the geographical composition of the country.
Clauses 16 to 21 provide for the establishment of a register of contractors, which is pivotal to the development of the construction industry. Previous speakers have referred to this fact and I welcome the inclusion of this very important clause. The size and distribution of contractors operating in the construction industry must be known. Furthermore the volume, nature and performance of contractors must be indicated. Matters such as the registration and deregistration of a contractor are dealt with, as well as the duration and renewal of registration.
As far as the financial implications for the state are concerned, it is foreseen that the CIDB will initially rely on state funding until such time that the register of contractors and the register of projects are established, whereupon the cost will be partially funded from the operation of these services to the industry stakeholders.
The state plays a role as regulator, facilitator and client. Of course, as the single largest client for the construction sector, the Government is well placed to influence the development.
The total annual budget for the CIDB is estimated at approximately R11,5 million. The CIDB will be funded by the Department of Public Works from within the MTEF budget allocation.
Finally, there is no doubt that the CIDB is a step in the right direction to restore clear guidelines for the efficient functioning of the all- important construction industry in the Republic of South Africa. [Applause.]