Chairperson, hon Minister, special delegates and hon members, as legislators we carry an enormous burden on our shoulders. We have a duty to ensure that all laws that pass through Parliament fundamentally transform the quality of life of all South Africans. The Construction Industry Development Board Bill being dealt with today is no different.
The economic struggle in South Africa is a challenging one. Enormous challenges confront the Department of Public Works in this regard. Poverty is rife and the progress of emerging contractors remains static. It is in this context that we see the formation of the Construction Industry Development Board. The board seeks to address the inadequacies of the current construction industry as envisaged in the White Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry.
Though the task ahead is enormous and huge, the Department of Public Works will have to tackle the bull by the horns. On the one hand we have big wealthy construction industries, whilst on the other hand there are poor, struggling, emerging black contractors. Within our communities there is a proportion of contractors who are promising in the construction industry, but have not been given the opportunity. The opportunity now arises; it is none other than the CIDB. The CIDB is to function as a permanent vehicle to drive the strategy in partnership with all government delivery agencies and the private sector.
The construction industry is part of the backbone of our economy. The hon Minister Sigcau refers to it as a national asset. The board will attempt to take emerging contractors on board as these have experienced numerous historical and economic constraints, that have hindered the full participation of smaller companies in the economy. The White Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry states that -
Government believes that emerging construction-related SMEs can contribute significantly to the realisation of key economic and redistribution objectives for a number of reasons.
They can be powerful generators of income and employment opportunities since they generally use less capital investment per unit of output than larger enterprises.
SMEs can be more competitive than larger firms on certain types of small, disparate and geographically dispersed projects because they generally have relatively lower overheads.
The relatively low entry barriers in terms of skills and capital requirements make SME contracting an important entry point for historically disadvantaged person into the construction industry.
Lastly, the ANC supports the initiative of the department as this may go a long way in easing labour unrest in the construction industry. [Applause.]