Minister, let me welcome you into this new Ministry and state that you really have your work cut out for you. You have come in at a time when there has been an historical underinvestment in our fixed infrastructure, with a backlog of R1,5 trillion having accrued since 1994. The effects of this underinvestment have been felt across our economy, from electricity blackouts to our failure to capitalise on the past commodities boom due to major bottlenecks in our transportation networks. It has also been felt in more indirect ways, such as our failure to retain our skills base in areas that we are going to need for all of our new build programmes.
So, while it is imperative for a major investment to take place in infrastructure, the burning question is whether we have both the financial and the human resource capacity to ensure that its goals can be achieved. It is therefore vitally important that we obtain value for money from each of our investments in relation to both infrastructure stock as well as creating much-needed jobs in our economy. We also need to build a more resource-efficient economy, with our infrastructure backbone helping to deliver far more sustainable outcomes.
In this respect, I welcome the South African renewable energy initiative, which is admirably trying ways to achieve more ambitious targets for renewable energy than that contained in the integrated resource plan, IRP2. This initiative, however, needs to be institutionally bedded within government and hopefully it can start to gain traction before the 17th Conference of the Parties of the United Nations Framework Convention on Climate Change, COP 17, at the end of the year.
Eskom also needs to actually start building the 100 megawatt concentrated solar power plant that has been on its planning horizon for the past decade. The ID is also concerned about the recent decision to scale down the rebates for solar water heaters, as we are still far short of reaching the one million target by 2014, and this will set the target back even further. Energy efficiency cannot just be about an advertising campaign but needs to be backed with real incentives and penalties if we are to ensure that the lights stay on in South Africa.
It also doesn't help when a 600 megawatt turbine is taken out as a result of incompetence at the Duvha Power Station. I know that we are still waiting on the report, but even without it we can categorically state that this should never have happened at a supposedly world-class power utility.
Finally, the ID is concerned about the funding model for Eskom and in particular that we still don't have clarity over how the proposed one trillion rand nuclear build will be financed. We also need to avoid another Chancellor House scandal and ensure that no political party financially benefits from any government contracts. The ID is therefore hoping that you will finally pass legislation outlawing such practices, as recommended in the Public Protector's report. In the interest of both our democracy and good governance principles, this is an issue that the ID will not let you run away from. I thank you.