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KWAZULU-NATAL DEPARTMENT OF TRANSPORT BUDGET SPEECH 2001/200220 March 2001
Presented by the Honourable Minister of Transport, Mr Sibusiso Ndebele,
KwaZulu-Natal Legislature In September 1999, I attended the first African Transport Ministerial in Atlanta hosted by the US Secretary for Transportation, Mr Rodney Slater. I was invited in my own right and also requested by Minister Dullar Omar to represent South Africa, perhaps in recognition of my being the longest serving Minister of Transport in the Democratic Republic. The conference was attended by almost all Ministers of Transport from our continent. Its theme was: TRANSPORT: THE TIES THAT BIND. It had a poignant sub-theme; "If you can get there you can trade there" An exchange of goods and services is the distinctive future of human civilization whether conducted by abasiki bebunda or through the internet. It is this that underlines the centrality of transport to human development. As we herald the new millennium, we are sharply aware that, but for the invention of the wheel, human kind would have hardly made any progress at all. It would thus be a tragedy if in our province, in our country, in our continent there are communities on whom the wheel has made absolutely no impact - which carry on their life as if the wheel has not been invented. The year 2001 marks the MILLENNIUM AFRICA PLAN, marks the dawn of the AFRICAN CENTURY and emphatically marks the KWAZULU - NATAL DECADE. We say that all that has been left undone in the area of peace, of reconciliation, of democracy, and of development in KWAZULU - NATAL must and will be done in this decade. Painfully conscious of the enormity of the task before us, we in the Department of Transport, declare at least a seventy two hour working week for everyone above the rank of Assistant Director and ninety six hours a week for the Minister and for the Head of Department of Transport. We shall lead by example and we shall run while they walk. In only six years of democratic government we have moved from a South Africa isolated from the rest of Africa and the world to a nation that is increasingly respected internationally and expected to play an important role in the Millennium African Renewal programme. The Millennium African Plan on global partnerships between Africa and the rest of the world is based on mutual self-interest. Africa requires critical investments in human resources development and communications technology that will speed up the transformation process and bridge the digital divide between developing and developed nations. Equally critical to the Millennium Africa Plan is a commitment to peace, stability and democracy. It is in the interests of developed nations to contribute to Africa's renewal because a developing Africa will generate increased levels of employment and wealth and would, therefore, increasingly become an attractive market for the world's goods. There can be little doubt that our political liberation and our improved economic performance have breathed new life into the realisation of the African Renaissance. South Africa is seen by the world and progressive humanity as a country of hope South Africa is playing a pivotal role in the re-emergence of the continent as a self-respecting and respected partner in the world order. If South Africa is to play this role successfully, KwaZulu-Natal has a critical role in demonstrating that peace and reconciliation is not only desirable but is the only option, that non - racialism is not only correct but is possible, that democracy is the only acceptable method of conducting human affairs and that development is not optional. Not only is KwaZulu-Natal home to more than a fifth of South Africa's population, it is also considered to have a strong comparative advantage, over other provinces, in the agricultural, manufacturing and transport sectors. Our performance as a province, does therefore, have a critical impact on South Africa's competitiveness in global markets. We, in the KwaZulu-Natal Provincial Legislative Assembly, are under a serious obligation to consolidate our non-racial democracy and coalition government to build our South African nation and to contribute to the African Renaissance. It is critical therefore that we move effectively to tackle poverty and it's effects. All of us can hope hopes, dream dreams and wish wishes. But to turn hopes, dreams and wishes into reality someone needs to pay for it. A budget, therefore, is not only an expression of our visions and policies. It spells out how those visions and policies are to be implemented. That is why we say a child makes a request, a parent makes a decision, a conference passes a resolution. However, a decision or a resolution is made by us, because we are who we are, the representatives of the popular will in its magnificent diversity. Our decisions are called Acts. The only other Acts will be found in the Bible. Let me say upfront that by and large the KwaZulu-Natal Department of Transport has performed well during this past financial year. Our achievements have received considerable acknowledgement by independent assessors. We were awarded Gold, Silver and Best Practice in the Premier's Batho Pele Good Governance awards. Impumelelo selected the KwaZulu-Natal Department of Transport as one of the top 300 affirmative action companies in South Africa. What makes this very special for me and our Department is the fact that we are the only provincial department nationwide that was acknowledged to have performed within the top 300 affirmative action companies. Impumelelo also awarded their coveted top prize to Zibambele for the reduction of poverty and improvement in the quality of life of poor people. Despite these wonderful acknowledgements of our work, we realise only too well that we have a long way to go before we overcome the apartheid legacy of separate development and how this has structured our provincial road network, our public transport systems and our construction and transport industries. Here one must be ever mindful of the facts that:
In my first few years as MEC of Transport in KwaZulu-Natal, by and large, budget allocations were still held captive by a legacy of past choices. We have worked hard to disentangle the apartheid and post apartheid transport visions on a road-by-road, bus subsidy by bus subsidy and route-by-route basis. This has now been consolidated in the passing of the KwaZulu-Natal Provincial Roads Act. Our roads and transport systems must reflect our economic priorities as a nation and as a province. Global competitiveness requires us to develop intermodal transport systems which are linked to development corridors and modal interchange nodes. Spoornet recently tabled their restructuring proposals which will have a significant impact on increasing rail's market share of transport in South Africa. The KwaZulu-Natal Department of Transport and Spoornet will co-operate to ensure an integrated transport plan for our province. The road and rail network linking KwaZulu-Natal's harbours and airports to our nation's products and international markets is critical in facilitating the shift from economic isolation to global competitiveness and from a transport network to support minerals and agriculture to one that facilitates manufacturing and tourism. This is the logic that informs the Spatial Development Initiatives and the Industrial Development Zones. In his State of the Nation address on 9 February 2001, President Thabo Mbeki summarised the objectives towards which we, as portfolio ministers, must apply our minds and, of course, our budgets: "The objectives we seek to achieve are moving the economy onto a high growth path, increasing its competitiveness and efficiency, raising employment levels and reducing poverty and persistent inequalities." We are expected, therefore, to improve our competitiveness as a nation by lowering input costs throughout the economy and to tackle poverty by focussing on micro economic issues and by levelling the playing fields. We are expected to use our budgets on people centred local economic development projects, which are founded in the context of economic growth, redistribution and global competitiveness. Today I will use the opportunity of my budget speech to take stock of appropriate building blocks that have been put in place to take the KwaZulu-Natal transport portfolio forward within the guidelines and planning objectives provided by President Mbeki to achieve sustainable development, economic growth, job creation and poverty relief. These objectives have been endorsed as the key policy priorities identified for the Medium Term Expenditure Framework (MTEF), by both provincial and national cabinets, namely:
I would like to reassure this Legislative Assembly and particularly Minister Peter Miller that our budget has been allocated against what we are expected to achieve - which is a bit more substantial than "tinkering at the margins". PROVINCIAL TRANSPORT BUDGET:
BUDGET ALLOCATIONS:
Building Blocks to Meet Our Challenges and Policy Priorities PERSONNEL EXPENDITURE During his budget speech Minister Miller raised concerns that: "In the 1999/2000 financial year personnel expenditure absorbed fully 59,73% of the total budget, up from 56,21% in 1997/1998. While this percentage is projected to fall to 55,57% for the 2000/2001 financial year, it is expected to rise again in the medium term." It gives me great pleasure to report to you that the proportion of the transport budget spent on personnel in our 2000/2001 budget was 35,23% and that this is budgeted to drop to 32,47% in our 2001/2002 budget and to 30,7% by 2003/2004. It is a significant achievement that we have managed to reduce our number of establishment posts from 8 062 to 5 834 (of which only 4 733 are currently filled) but, at the same time, we have also succeeded in increasing the number of professional posts in key public interest portfolios. For example in 1994 the Road Traffic Inspectorate had a staff complement of 350 enforcement officers. Today the Road Traffic Inspectorate employs 515 enforcement officers, which is an increase of 32% since 1994. The restructuring of the KwaZulu-Natal Department of Transport is predicated on similar professional staff growth patterns in all other key public interest portfolios including Road Safety, Road for Rural Development, Emerging Contractors, Zibambele, Public Transport and the regulation of the Taxi Industry. The Department has reduced its number of establishment posts while at the same time increasing its professional capacity with the full co-operation of its 17 unions. What is more, it has begun to reflect a gender balance in senior management structures, which is in line with the targets set by the Department of Public Service and Administration of 30% women senior managers in Government. It was only in 1997 that White males commanded almost 80% of the top salaried positions in the KwaZulu-Natal Department of Transport. In 1997 only 4 women were employed in the Department at salary level 8 (Senior Administrative Officer) or higher. Today we have 49 women employed at salary level 8 and higher. Despite the fact that there is a general shortage of women engineers and technicians in South Africa we none the less have:
This, of course, is not enough. But it is a South African "gender in engineering" issue and not one arising from a KwaZulu-Natal Department of Transport basis. Similarly the Road Traffic Inspectorate, which is 61 years of age, has historically been a male dominated profession. So much so that until 1996 women were not admitted as traffic officers. There are now 44 women Provincial Inspectors and I am happy to report that each year's new intake shows an increasing ratio of women officers. In February 2000 Dr Kwazi Mbanjwa was appointed Head of the KwaZulu-Natal Department of Transport. Since then he has embarked on an ambitious and revolutionary restructuring process of senior management and women now occupy 3 of the most senior positions in the Department. I am certain that when our One Stop Shops become fully operational there will be a conscious attempt to recruit women into middle management positions. The radical restructuring of the KwaZulu-Natal Department of Transport to now deliver on its mandate and vision has taken tremendous discipline and mature leadership. I would like to thank and congratulate Dr Kwazi Mbanjwa, senior management and union leaders for their commitment to structure a transformed KwaZulu-Natal Department of Transport that puts innovation and leadership at the heart of our delivery systems to bring customer needs and customer satisfaction into sharper focus. The KwaZulu-Natal Department of Transport will continue to "right size" its structures. In the process we will strengthen our professional capacity and, at the same time, increase the value of work that is outsourced. The KwaZulu-Natal Department of Transport will continue to be race and gender affirmative both in the appointment of staff and in the awarding of contracts. ROADS
I have often quoted the words of the late John F. Kennedy who said: "It is not the wealth of a country that builds roads, but it is the roads that build the country's wealth." These words capture the critical role of roads in the development of any country's economy. Without an appropriate road network there will be no real creation of wealth. Equally true is the fact that the poor condition of the road network is a drain on the economy in that it dramatically increases vehicle operating and transport costs which translate into higher production costs, higher marketing costs and, of course, less money in our pockets. I have repeated the immortal words of John F. Kennedy today because I am ever hopeful that you, my colleagues, will take them to heart and deliver to me the budget that I ask for. The KwaZulu-Natal Department of Transport has completed its Roads Needs Assessment Study. The study highlights the deteriorating condition of our provincial road network. The key findings include:
The findings of our Roads Needs Assessment Study were developed into an Implementation Plan for Conserving the Road Network. This was submitted to the Department of Finance and Provincial Treasury in August 2000. The Implementation Plan for Conserving the Road Network is, in some ways, a conservative document because it advocates time frames to upgrade and maintain our oad network that are perhaps too long. You can judge for yourselves. The Implementation Plan for Conserving the Road Network advocates a baseline budget for roads of R1 022 million to do the following:
Although it did not form part of the Implementation Plan for Conserving the Road Network strategy and budget, I would have also requested an additional R166 million per annum, over a ten year period, to upgrade 3 500 kilometres of gravel roads, which carry more than 300 vehicles per day, to low cost blacktop. This would result in a minimum vehicle operating cost saving of R140 000 per kilometre per annum which, incidentally, is an annual saving of 28% on the estimated cost of upgrading to low cost blacktop. Makes good cents! I firmly believe that the budget of R1 022 million indicated in the Implementation Plan for Conserving the Road Network is a conservative budget given the time frames envisaged. Our road network is a critical factor in determining the economic performance of KwaZulu-Natal. In KwaZulu-Natal 80% of people and goods are transported by road. It stands to reason, therefore, that if our road network fails our provincial economy will collapse and the costs of providing the public with services will escalate. We dare not allow this to happen! This is certainly not the first budget speech in which I have raised concerns over the continued under funding of roads in our provincial budget allocations. Indeed, I remember well that last year Mrs J.M. Downs spoke strongly, during the debate on the transport budget, in favour of increasing the roads budget immediately rather than having to pay the price at some later date should there be no increase. It is noteworthy that a recent report commissioned by the AA Road Traffic Safety Foundation found that the under-funding of roads since 1988, with the abolition of the dedicated fuel levy for road construction and maintenance, has resulted in a cost to restore the road network which is now seven times more than would have been needed had adequate maintenance been carried out. The total cost of restoring the South African road network is now calculated at a staggering R65 billion. Again, let me quote the immortal words of John F. Kennedy: "It is not the wealth of a country that builds roads, but it is the roads that build the country's wealth." How right he was then. How right he is now! In 2000/2001 I was able to allocate only R608 507 million of the transport budget (71,1%) towards roads. Over and above its baseline budget the Department was allocated a conditional grant of R46 million for critical periodic maintenance involving resealing and rehabilitation of road surfaces, specifically on major routes. This year R810 449 million (74,8%) of the transport budget has been allocated towards roads. This is still some R212 million less than the budget that I have now outlined under our Implementation Plan for Conserving the Road Network and R378 million less than what I consider to be the minimum budget required to sustain and grow the KwaZulu-Natal economy. Here I must emphasise that a dedicated budget of R1,2 billion per annum, to restore and upgrade the KwaZulu-Natal provincial road network, is premised on a ten year work plan. It would be in the public interest and in the interest of the construction industry, SMME development and job creation to accelerate the programme by voting a higher level budget. For your information the following outlines the costs of roads per kilometre.
Despite the doom and gloom surrounding our provincial and national road networks, it gives me great pleasure to announce that this coming financial year the KwaZulu-Natal Department of Transport will embark on several major road upgrading projects. Our intention is to design the projects in such a way that all road builders become involved in ensuring the success of the projects, working together co-operatively as a team to build the new face of the construction industry in KwaZulu-Natal. This development is only now a possibility because of the adoption of the Medium Term Expenditure Framework which allows for multi-year planning. Our intention in these large upgrading projects is to unbundle contracts in such a way that the well established contractor enterprises will team with emerging contractor enterprises to build the road on independent contracts but as inter-dependent contractors. Further, that work which does not fall under the critical path of road construction will be independently contracted to emerging contractors under our Staged Advancement Emerging Contractor programme. Our plan to promote the new face of the construction industry in KwaZulu-Natal does not stop here. We are talking about roads that serve communities that are hopelessly under-provided for but which have a huge development potential, particularly a potential for market agriculture and tourism. We do not want to build a road from Mtubatuba to Vryheid when the first thing that enters the motorist's head is: "How quickly can I complete this journey?". We want to build roads that encourage people to travel more slowly and to stop and enjoy the physical and cultural diversity of KwaZulu-Natal. We intend, therefore, to include a road beautification programme which will accommodate rest stops with clean toilet facilities and landscaped indigenous gardens. These rest stops will be maintained and kept clean by Zibambele contractors. They will undoubtedly become a focal point to market handcrafts, garden produce and refreshments. In other words we will now use our road construction programme within the true spirit of the African Renaissance which recognises that we are African irrespective of our race. It has always been our Government's policy that one can have Black Africans, White Africans, Coloured Africans, Indian Africans, Chinese Africans, etc. What makes one African is a sense of belonging to Africa. In other words the African Renaissance is about roots and not race. This is why South Africa is so often referred to as the Rainbow Nation. Our roads programme will build the new rainbow construction industry in KwaZulu-Natal which will secure economic empowerment and upliftment precisely because it is in the best interests of all stakeholders that we work to normalise the road construction industry. To quote our President, Thabo Mbeki, from 1998:
I have always advocated that the KwaZulu-Natal Department of Transport's dedicated budget to support emerging contractors was allocated in order to develop an appropriate context in which the normalisation (Africanisation) of the road construction industry in our province could occur. The increased budget allocations for roads and the adoption of the Medium Term Expenditure Framework now allows us to specifically plan for this outcome on large road projects. In this financial year we have budgeted R56 million for the design, planning and start up of several large road projects which, we believe, will make a critical difference in the economic growth of KwaZulu-Natal. We will set aside a larger budget share in future years and will continue to lobby for additional funds. The large road projects that will be initiated in 2001/2002 are:
These are rough gravel roads with above average maintenance needs due to the high traffic volumes in excess of 650 vehicles per day. It is an important corridor serving the development nodes of Nongoma and Hlabisa. Both these centres have hospitals serving large rural communities. It will be the only blacktop road serving an area of 2 500 km2 and will serve as an important tourist route linking the World Heritage destination of the Greater St Lucia Wetland Park, the Hluhluwe/Umfolozi Game Park and the cultural and historical sites associated with the Zulu Kingdom.
A network of rough gravel roads serving local communities and tourists. Attractions for tourists include the Nkandla forest and the grave of King Cetswayo. A surfaced road will kickstart the opening up of a large rural area with a massive backlog in infrastructure and proven high agricultural potential. The district of Nkandla has a land potential not dissimilar to that found around Cedara. Despite its good land potential its population lives in desperate poverty with a dependency ratio of 27 unemployed to 1 employed.
A rough gravel road with high maintenance costs. Sections of road are carrying up to 1 100 vehicles per day. It serves a densely populated rural area on the outskirts of the Durban Metro area. Inanda has been earmarked for funding under the Urban Renewal programme. As you know, Inanda's rich history makes it an important living symbol of our South African Renaissance. The blacktopping of Main Road 100 will open up an area which has a rich potential for cultural tourism.
A rough gravel road with high maintenance costs due to the high traffic volume. Sections of road are carrying up to 1 200 vehicles per day. It is a major link through a vast rural population. The road passes through the rural centre of St Faiths which has the only hospital in the district.
A rough and dangerous gravel road serving as a major commuter route. The traffic composition is largely busses and taxis and the traffic volume is 500 vehicles per day.
A rough gravel road with high maintenance costs due to the high traffic volume of up to 650 vehicles per day. It is an important commuter route serving a large area of rural settlements. It provides the link between the two major towns of Dundee and Newcastle. The total cost of upgrading these 348 kilometres of roads will be R452,3 million. I would like to repeat that we only have R56,0m to kick start these major road projects this financial year. If the funds were available we would be able to complete the construction of these road projects to change economic potential of KwaZulu-Natal. These roads will be upgraded and maintained through a series of joint venture and "team" contracts that draw in all our road contractors from Zibambele to the well established and profitable enterprises. I am pleased to inform you that we have been approached by several amakhosi with the view to fencing well trafficked roads and working with them to ensure appropriate livestock containment measures. I mention this in response to the query from the DP member, Mr R.E. Keys, at last year's budget speech. I would like you to know Mr Keys that we did take your concerns seriously and that provision is made to introduce appropriate livestock containment systems under the recently approved KwaZulu-Natal Provincial Roads Act. We will continue to respond to the needs of the emerging contractor sector in our Roads for Rural Development programme which has a strong focus on local roads. The budget allocation for local roads in 2000/2001 resulted in the construction of more than 200 local roads and some 100 minor bridge structures. This gave new access to 478 050 people, 405 schools and 129 clinics. In addition 9 170 kilometres of road were bladed under a programme which requires close co-operation between our regional staff, amakhosi and Rural Road Transport Forums to identify blading programmes. As you know, under our Roads for Rural Development programme, local roads are prioritised by our Rural Road Transport Forums. In closing I would like to point out that the KwaZulu-Natal Department of Transport is widely acknowledged to have used its portfolio to introduce affordable and innovative solutions that do reduce poverty and do provide poor communities with hope. Mr Speaker, I am emphasising the role of the KwaZulu-Natal Department of Transport in the reduction of poverty because I think that all of us present today, in this Legislative Assembly, acknowledge that the greatest challenge that we face as a nation and as a province is the eradication of poverty. Poverty is our most pressing social problem. Poverty is the common denominator in chronic ill health, malnutrition, the spread of HIV/AIDS, TB and other preventable diseases, illiteracy, innumeracy, escalating crime and hopeless apathy. Central to the lasting eradication of poverty is the creation of sustainable job opportunities that increase the productivity of our country. Central to the lasting eradication of poverty is Government in programmes that factor an understanding that the poor remain persistently poor because too few opportunities exist for them to improve their lot and that avenues for self advancement are historically linked to the advancement of the more privileged sectors of society at the expense of the underprivileged. Central to the lasting eradication of poverty is the redistribution of opportunities and resources and the creation of an appropriate institutional framework to ensure that the poor can take advantage of new choices. There is no doubt that our Zibambele, Emerging Contractor, Emerging Merchant and Taxi Industry programmes have done just that. They have created jobs where no jobs existed before. They have created opportunities where no opportunities existed before. And they have, in the process, contributed to the upgrading and maintenance of valuable public assets. In other words, the KwaZulu-Natal Department of Transport has used its budget in the bests interests of a KwaZulu-Natal Renaissance. The KwaZulu-Natal Department of Transport can make a greater contribution to the sustainable reduction of poverty in KwaZulu-Natal. We can increase the number of Zibambele contracts. We can create an appropriate environment for the normalisation of the construction industry in our province. We can provide the public with an affordable public transport system. We can address the mobility and transport needs of the poor in a holistic way. We can, of course, only do this if we receive appropriate budgets. We have, I believe, introduced affordable solutions to address deep rural poverty and we can, I believe, move from the eradication of poverty to global competitiveness. We can build our KwaZulu-Natal Renaissance and, through this, contribute to our South African and African Renaissance. Finally, I would like to acknowledge the tremendous support I have received from Dr Kwazi Mbanjwa and his management team in the performance of my portfolio as Minister of Transport. They have worked tirelessly and selflessly to ensure that the public receive value for money from the KwaZulu-Natal Department of Transport. In the final analysis the success of the Department is dependent on our field staff whose responsibility it is to implement management's programmes. I would like to thank all of you for your hard work and your support. Thank you.
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