Chairperson, Comrade Minister, Deputy Minister, hon members, ladies and gentlemen, comrades and friends, I was supposed to respond to what the members of the opposition have said. But, Minister, most of the issues that were mentioned are just a reiteration of what you were saying. They just need your attention, except that I have to say to the hon Tozamile Botha that he can rest assured that his understanding is the correct ANC understanding. [Applause.] He is correct that the function of this department is not to sell state land but to identify state land for human settlement.
In the 2009 election manifesto, the ANC had a vision to put in place an economic stimulus package constituted of various policy instruments in order to stimulate the economy. Furthermore, it will take active measures through an appropriate social package to minimise job losses and protect vulnerable sectors of the economy. Therefore, the creation of housing entities was in line with the ANC manifesto in the sense that it seeks to accelerate service delivery and stimulate the economy.
These housing entities will also assist the ANC-led government in tackling the legacy of the National Party's apartheid policies with new measures that will do the following: mobilise and support community efforts; facilitate access to subsidies; promote the most cost-effective use of resources; regulate settlements and create secure tenure options; build capacity and facilitate an optimum transfer of skills; facilitate economic upliftment and employment creation; promote a culture of saving; and create mechanisms to link credit and savings.
The Department of Human Settlements has launched the Housing Development Agency as a result of its determination to eradicate informal settlements by 2014. The intention was for the agency to minimise delays caused by excessive bureaucratic red tape that hindered approval for housing projects. This programme involves community participation, and will create opportunities for poor families to boost the value of their subsidies by contributing their own resources and taking important decisions around the design and construction of their homes.
With regard to project management, the Housing Development Agency will look at the issues of proper facilitation. An essential component of the Housing Development Agency will be to ensure proper project funding, thereby creating a better life for all the people of South Africa.
The National Urban Reconstruction and Housing Agency is a joint venture between the government and the Soros Economic Development Fund, which aims at providing bridging finance to contractors building low- and medium- income projects, and ensuring that 80% of those financed were smaller contractors. This entity plays an important role with regard to empowering small contractors.
The Rural Housing Loan Fund will maximise financial access to rural communities, thereby improving the quality of life in these communities. It also contributes to small, medium and micro economic development and job creation. It works in all provinces through intermediaries, which is in line with the ANC-led government's aspirations.
The National Housing Finance Corporation was instrumental in establishing the social housing sector, and banks are now participating voluntarily. Most social housing projects are funded by the corporation. Attempts are being made to attract other funders to engage in co-funding initiatives, I believe, Comrade Minister.
We want to commend and encourage banks to continue to support the initiative so that together we can provide homes for all. However, future funding remains a concern, as a continuous drain on reserves would prove detrimental to the overall mandate. The corporation will participate with the new housing plan by changing the risk of the private sector.
A retail route is being considered to bring the corporation closer to end- users and to strengthen the understanding of the target market. An example will be provided to the private sector to indicate that low-cost housing could be a viable business option. Funding for informal settlement will be pursued and initiatives will be introduced to reduce rental costs.
President Jacob Zuma, in his state of the nation address on 3 June 2009, stated that the Neighbourhood Development Partnership Grant programme would target the renewal of rural towns, and thus areas around the towns would benefit from the economic boost. Therefore, these housing entities will go a long way in achieving the President's goal. [Interjections.]