Hon Chairperson, hon Minister Molewa, hon Deputy Minister Mabudafhasi, hon members, our visitors in the gallery, ladies and gentlemen, the ANC, at its 2012 National Conference, debated at length about the achievements and challenges that underpin any future strategy in the provision of water infrastructure supply and water provision.
We believe that water is a critical, strategic natural resource. It is essential for growth and development, for the environment and health, as well as for the wellbeing of all the people of South Africa. Although this principle is generally accepted, it is not always well understood nor widely accepted.
South Africa is a developmental state and as such there is a need to define the role of this developmental state in managing water. Despite the fact that South Africa is a naturally water-stressed country, further challenged by the need to support growth and development, as well as potential climate change impact, water requires a concerted effort to give it as a resource the priority status and attention it deserves.
This situation is reflected through the manner in which this scarce resource is wasted. More than 35% of water is wasted per day. Water is polluted, degraded and inadequately financed. South Africa has a fairly well developed water management and infrastructure framework which has resulted in a perceived sense of water security as well as a lack of appreciation for this critical, strategic resource.
In terms of the statistics released by Statistics SA last year, the ANC-led government has reached 97% of water provision. It is evident, though, that of the 97% only 48% represent the rural communities that have been reached. This is as a result of a lack of infrastructure in some of these areas and, more importantly, the still persistent skewed nature of the allocation of water.
While water plays a pivotal role in everyday life and in social and economic development, water resources and their management do not receive the attention and status they deserve. Despite its policy functions, water is not properly reflected in the macro and sector strategies. There are still challenges with regard to national budgets allocated to water resources for their development, management and protection, which at most do not reflect the importance of water as a policy and a scarce resource.
Without a significant increase in investment in water infrastructure development and management, it will be very difficult to ensure and sustain water security for the achievement of economic growth and social development targets.
The challenges which the ANC policy conference of 2012 identified are the central ones, which any debate of a developmental state on water provision should revolve around. These are, firstly, water pricing; secondly, opening licensing opportunities to historically disadvantaged individuals; thirdly, investigating the opportunity to change single-purpose dams into multipurpose dams to provide opportunities for the historically disadvantaged communities; fourthly, ensuring sustainable water infrastructure reticulation in rural areas; fifthly, ensuring that there is access to water and encouraging the full participation of our people in decision-making; and finally, ensuring that there is enforcement of the Water Services Act. This is what our ANC-led government is already addressing.
While there has been good progress in extending access to basic water and sanitation services, there has been a decline in the overall number of households receiving free basic water and free basic sanitation. This is due to many municipalities moving away from providing these services free to all deserving households to targeting the provision of free services to indigent households only. South Africa's critical infrastructure needs are in part the outcome of two decades of underinvestment, with public infrastructure spending tailing off from the early 1980s to the mid-1990s. The ANC-led government began to increase capital spending, with a sharp rise after 2003 as prudent management of the economy created the fiscal space for long-term investment.
Capital spending on water infrastructure by the metros fell significantly in 2010-11, and did not recover from the 2008-09 levels of the medium term. However, spending on water infrastructure amongst the categories B and C municipalities is expected to increase significantly, and is already doing so in this period.
South Africa is facing a number of significant challenges in relation to water, both at the level of the resource as well as in the actual provision of water services by municipalities. Recent studies have estimated that demand for water in South Africa will exceed supply by 2025 if nothing is done to supplement current water resources. The sustainability of the sector as a whole is also at risk due to the poorly maintained and often ill-equipped infrastructure, general underpricing of water across the value chain and the deteriorating quality of sanitation services in a number of our municipalities.
Given that there has generally been a history of underinvestment in maintenance and the renewal of assets in the water sector as a whole, it is critical that appropriate investments be made to upgrade existing infrastructure as many of these assets are approaching the end of their useful lives. Therefore, funding for the rehabilitation of infrastructure is required to ensure that the useful life of these assets are extended.
In his state of the nation address, our President, Jacob Zuma, emphasised the need and necessity for all our people across the country to access basic services such as water through the National Development Plan, NDP. A number of infrastructure programmes are already being funded, are under way and are being implemented. The following are just a few of the programmes that I should mention: firstly, the construction of Umzimvubu and De Hoop Dams in the Eastern Cape and Limpopo provinces respectively; secondly, the Clanwilliam Dam, located in the middle reaches of the Olifants River in the Western Cape, which provides water to poor farmers and produces 70 million cubic metres of water per year, thereby promoting food security and employment by the time it will be completed, providing permanent jobs to more than 2 500 people in the agricultural sector; thirdly, the infrastructure projects in the Limpopo province, such as the Molopo Dam on the Crocodile River, which already supplies water to the area around the Lephalale Local Municipality; fourthly, the Tzaneen and Nwamitwa Dams for the Groot Letaba River, which are also helping with the growing demand for water, both in the domestic and agricultural sectors; and finally, the Nandoni pipeline water project, which is also very important in supplying water in the Vhembe District Municipality of Limpopo. Infrastructure development not only provides water, but also creates jobs and skills development, especially for the youth in our country.
The Department of Water and Environmental Affairs is well on its path of ensuring that all South Africans gain access to clean water. Thanks to this wonderful department for promoting effective and efficient water resource management to ensure sustainable economic and social development in line with the NDP 2030. The ANC supports Budget Vote No 38. I thank you. [Time expired.] [Applause.]