Honourable Premier,
Honourable Speaker,
Honourable members of the Provincial
Cabinet,
The Honourable Leader of the Opposition,
Honourable Members of the Provincial
Legislature,
Heads of Provincial Departments,
The nearly 80 000 staff members of the
Western Cape Government,
Our special guests today, which include
entrepreneurs and students,
And the 5.8 million citizens of our
Province
A Budget to Build a Growing Economy that
Belongs to Us All
Welcome to everyone here today. Mr Speaker, this is the
fourth time that I am standing before this house to table the budget of the
Western Cape Government. In this, the last full year of our current term of
office, it is a particular honour for me to address you.
While the distinctive nature of our region
may add to our sense of identity, each and every Western
Cape
This same notion is expressed in the
National Development Plan, which calls on us to form a social compact to reduce
poverty and inequality. I would like to extend an invitation to the honourable
members on the other side of the house, and to all the leaders present here
today, to join hands and work with us to give effect to the NDP in the
interests of all the people that we serve. Through a joint approach, we can get
it right.
Mr Speaker, while we have secured many
achievements, we still have a long way to go. We are ready to play our part.
In line with the NDP, to address our
challenges, we will focus on:
•Uniting our people around a common
programme to achieve prosperity and equity.
•Promoting active citizenry to strengthen
development, democracy and accountability.
•Bringing about faster economic growth,
higher investment and greater labour absorption.
•Focusing on the key capabilities of our
people and the state.
•Building a capable state.
•Encouraging strong leadership throughout
society to work together to solve problems.
•These priorities align with our own vision
as outlined in our Provincial Strategic Objectives.
In the year ahead, we have dedicated our
budget to driving these priorities because they will create a better and more
inclusive South Africa
Economic Context
Mr Speaker, for the fourth consecutive year
we have been required to devise our budget in a constrained fiscal environment.
We remain committed to doing more with less.
Globally, growth in 2012 slowed to 3.2%.
Despite initial optimism, advanced economies –especially in the US
The outlook for emerging market economies
is more optimistic.
In line with this, strong growth is
forecast for Sub-Saharan Africa. In 2013, the region is expected to achieve
growth of 5.8%. Around the world, investors are turning their focus to the
world's fastest growing economies, many of which are to be found in Africa
If South Africa does not work urgently to
follow in the footsteps of its neighbours and fellow BRICs countries by putting
policies in place that foster growth and jobs, it risks losing out on these
opportunities.
In 2012, our country achieved economic
growth of 2.4%. More people are unemployed in our country today than one year
ago. Our primary sectors – mining in particular –presented the largest drag on
GDP growth.
As outlined in the 2011 Census, the Western Cape
Province
Agriculture is a key driver of our regional
economy. It accounted for 22.6% of the national economy's value added in this
sector in 2011. The violent labour protests in late 2012 and early 2013 will
have negative implications for production over that period. In addition, the
52% increase in minimum wages for farmworkers, which came into effect on the
1stof March 2013, could result in the loss of jobs and more rapid mechanisation
of the farming process – a major setback for our rural areas.
In 2012, the Western Cape
In the fourth quarter of 2012, there were
573 000 unemployed people in our Province, almost 70% of whom are between the
ages of 15 and 34. Young people and those without a matric qualification
continue to be our most vulnerable citizens, a situation which is unlikely to
correct itself and requires measured intervention.
In order to foster a positive investment
climate in the Western Cape
Mr Speaker, we live in an uncertain
economic environment, and Provinces have been alerted to the fact that they
need to buffer themselves against a reduction in national transfers in future
years. In order to insulate our Province against potential future external
shocks and the stubbornly slow economic environment, we will set aside a
contingency reserve, particularly in the two outer financial years.
I will now proceed to outline some of the
key expenditure items that we are putting forward in Budget 2013 through which
we believe we will achieve higher growth and jobs and improve our
administrative capacity. Many of them are in line with the Democratic
Alliance's Alternative Budget and policies, documents which we fully support
and will work to implement as far as possible in this Province which we govern.
Creating Job Opportunities to
Encourage Economic Inclusion
Mr Speaker, as mentioned earlier, the
biggest challenge our communities face is unemployment.
The National Development Plan states that
to eliminate poverty and reduce inequality, South Africa
The Western Cape Government is ready to
play its part by extending to its citizens opportunities to become actively
employed.
This year, in collaboration with the
national government and municipalities in our Province, we will progressively
upscale work opportunities through the Expanded Public Works Programme. Over
the 2013 MTEF, together we will sustain more than a quarter of a million EPWP
jobs in the infrastructure, social, economic and environmental sectors. Out of
provincial resources, we have very nearly doubled the national incentive grant
for EPWP, raising the total contribution from own resources to almost R140
million over the next three years. Primarily, the EPWP beneficiaries will
assist us to build roads, education and healthcare infrastructure. Others will
be trained to become Neighbourhood Watch coordinators, to work in our
CapeNature Reserves, assist as coaches at our after-school sports and culture
centres as well as provide home-based caring for the elderly and infirm.
Through the EPWP programme and other funding sources, we will also create
employment opportunities for additional fire-fighters.
Over the next three years, we will spend
over R112.201 million – R65.138 million of which was awarded by the Jobs Fund –
on three flagship skills interventions for unemployed youth.
Firstly, we will ramp up our highly successful
Work and Skills Programme, our version of the Youth Wage Subsidy. Through this
programme, we will create 3 000 at-work training opportunities for unemployed
young people with a matric or equivalent who are willing and eager to learn.
Historically, 60% of participants who enter this programme, many of whom are
from rural areas, are eventually permanently employed by their host companies.
Through the Artisan programme, we will
train and place 200 artisans in key sectors, such as the Oil and Gas industry, which
are in high demand for their skills.
Finally, through the CAPACITI 1000
programme, we will retrain100 unemployed post-graduate students in Business
Analysis this year – a skill desperately needed by the financial services
sector of our economy which has been outsourcing positions to foreign
nationals.
This year, we will fund the creation of a
further 678 Premier's Advancement of Youth (PAY) project interns. Through this
programme, young people are given the opportunity to complete paid internships
in provincial government departments where they are also subjected to the
rigours of a strict work environment. Because they have work experience, these
young people are being head hunted by, amongst others, the BPO sector for jobs
in the call centre industry.
We will also continue to support job
creation through the Masakh'iSizwe Programme which provides bursaries for young
people in the engineering and built environment sector. In the year ahead, we
aim to extend this programme to the water sector.
The Western Cape Economic Development
Partnership, a non-partisan body initiated by the Western Cape Government to
devise a single brand and economic development strategy for the Province, is
due to table before Cabinet this month its proposition paper on creating Paths
to Employment and Enterprise
The above initiatives, in addition to
others, will assist many young and unemployed people to gain footholds into the
economy, to take the first steps on the path toward better lives and assisting
us to create a more competitive region.
Education is Everything
We have put our job creation programmes in
place in large part to assist those who need extra help to become employed. In
many instances, they find it difficult to get work on their own because they
did not have the opportunity to complete schooling and don't have the skills
needed by our economy.
Mr Speaker, in today's world, nothing can
substitute for quality education. A good education, in which the learner,
parents, teachers and principal are fully invested, is the one thing that can
change a whole family's destiny in one generation. That is why over the 2013
medium term, we are investing R49.028 billion – over a third of our budget – in
improving our education outcomes and providing greater access to quality
education across our Province. While we have made significant gains in turning
our education system around, as detailed by the Premier in her opening address
to this house, there is still some way to go.
To address our priority areas, we have
dedicated our resources toward helping our learners achieve better language and
mathematics results, improving the quality and number of our National Senior
Certificate passes and reducing the number of under-performing schools in our
region.
To better prepare our young children to
take on the challenges of their first year of school, we are working toward
achieving the universal roll out of Grade R in all parts of the Province by
2014. In the 2013 MTEF, the Education Department's Early Childhood Development
Programme receives R1.577 billion, which includes an additional R79.602 million
in the outer year for extra teachers to support the development of the
Province's 65 000 enrolled Grade R learners.
Speaker, an extra R100.645 million in the
outer year of the 2013 MTEF has been provided for extra teachers across all
grades in our poorest schools. We will offer these students a higher level of
support by reducing the teacher:learner ratio in their classrooms.
As families move out of rural areas to seek
economic opportunities in cities, a number of our urban schools are facing a
great challenge to accommodate all our learners. Between 2010 and 2012, over 20
000 additional learners were enrolled in our public ordinary schools. We have
therefore ramped up our investment in new schools, replacement structures,
infrastructure maintenance and extra mobile and fixed classrooms. This
programme, which will run over the next three years, receives R3.170 billion.
Improving our grade 1 and nine pass rate
and retaining more learners in grade 10 to 12 is another priority of the
Education Department. Over the coming year, we will dedicate additional
resources toward addressing this.
To ensure that our schools remain
accountable, we have instituted tailored School Improvement Plans across the
Province that we monitor electronically on a regular basis. Through these
personalised plans, we will ensure that our schools are making progress in
providing a better quality of education to our learners.
Healthy Citizens are Ready for Work
Speaker, the ability of our people to
become active players in our economy is highly dependent on their level of
wellness. To promote growth and jobs, we must ensure that our citizens are
ready for work.
In the Western Cape
In the 2013 MTEF, we have dedicated over
R50 billion – the largest chunk of this government's budget - toward meeting
the wellness needs of those without private healthcare in our Province. While
some may celebrate this figure as an achievement, Mr Speaker, it is actually a
tragedy, for roughly 80% of it will be spent on managing illnesses and injuries
that arise as a result of poor choices and are entirely preventable through
more responsible behaviour.
That is why we are investing in a special
programme to promote behavioural change. Through the Department of the Premier,
this programme receives a budget of R1 million in 2013 to investigate and
develop ways to encourage our citizens to become more responsible in the way
that they conduct their daily lives.
To offset the rising demands placed on our
healthcare services, in the medium term we have set aside funding to provide
for the operationalization of new health facilities in Du Noon, Delft, Knysna
and Hermanus. We have also set aside funding for the development of a 72-hour
psychiatric ward at the Mitchell's Plain hospital and a new Emergency Medical
Services Computer Aided Dispatch System through which we aim to improve the
response rates of our medical personnel.
We will also place added emphasis on
preventing, detecting and managing chronic disease.
In 2013, we will supply anti-retroviral
treatment to almost 158 000 HIV positive citizens so that they may continue to
live productive and dignified lives. We will also work to further reduce the
rate of mother-to-child-transmission of HIV in our Province, which is already
the lowest in the country at only 1.9%.
To improve women and child wellness in the
Province, we will screen 88 000 women for cervical cancer, provide neonatal
classes to 60 000 pregnant women and vaccinate over 100 000 infants in respect of
the full immunisation schedule.
And finally, an amount of R33.327 million
over the next three years has been dedicated toward the roll out of an improved
diagnostic test for Tuberculosis, a disease which remains rife in Western Cape
communities.
Through this budget our HealthCare 2020
plan gets a further boost, I am hopeful that will be able to make a meaningful
impact on the quality of our healthcare offering and the level of service we
provide to our patients. To address the latter, we have established a hotline
to which patients can report any service delivery complaints and are achieving
a 97% resolution rate of these calls.
Delivery of Social Services to Afford
Dignity to Our Citizens
Speaker, it is the duty of state, as
outlined in our Constitution, to provide a safety net for those that cannot
support themselves and their dependants.
Through the Department of Social
Development, which receives an allocation of R5.1 billion over the 2013 MTEF,
we will make a concerted effort to extend quality social assistance to the
poorest members of our community.
The main delivery vehicles for social
services in our Province are the nearly 1 300 NGOs that we support. While many
of them perform a valuable function, a few of them are unable to adequately
account for the funds that we supply them with to do this work. That is why,
over the coming year, we will invest resources toward providing financial,
administrative and governance training to our NGOs. This will not only assist
them to become more sustainable, it will also assist them to achieve better
value for money and better outcomes.
Speaker, we are as committed as ever to
building an inclusive and caring society. It is only through active citizenship
– our collective effort - that we will truly address the affront to human
dignity suffered by so many in our Province on a daily basis.
Our first priority must be to prevent our
most impoverished from turning to substance abuse to escape their
circumstances. Drugs and alcohol are an insidious threat to our communities,
and to our ability to boost our economy through the active participation of
all.
In the coming year, we will invest R81.437
million in our substance abuse programme. Through this programme, we will
provide prevention and treatment interventions for our people. We will expand
our community-based treatment centres and residential treatment offering paying
special focus to our rural and informal areas where these interventions are
needed most.
We will also give significantly more
resources in support of disabled people in our society. In 2012, we identified
capacity constraints at our centres for intellectually disabled children which
we will work to address in the year ahead. Funding of R9.460 million has been
ring-fenced to provide for additional caregivers at these centres for the next
three years. Through the Department of Education, we have allocated R5 million
so that we can employ multidisciplinary teams to 44 centres. We will also
improve the general living conditions at selected centres, an initiative which
has been provided for under the budget of the Department of Public Works.
Through the Department of Health, we will
significantly increase the provision of assistive devices to those with
disabilities, with a focus on cochlear implants to address hearing impediments.
Through the work of many of our departments, we are making a tangible
difference to the quality of life of the citizens of our Province.
Speaker, over the coming year, we will also
offer a range of human settlement opportunities to our people. Within our
limited budget, we cannot meet the demand for free housing of the type that we
currently supply, and will look toward developing innovative solutions to
address the realities faced by our residents, especially in our informal
settlements. In particular, we will look toward reducing the threat of fire,
flooding as well as the unhygienic circumstances that arise due to the high
density of these areas through alternative and greener housing structures.
We will also explore innovative ways to
provide an increased number of households with access to basic services by
encouraging municipalities to upgrade existing informal settlements in their
Human Settlement Plans. We will also seek to eradicate the backlog of Title
Deeds subsidy beneficiaries who have not yet received ownership of their
properties.
In the short term, we are determined to
create an environment that gives more of our residents the economic wherewithal
to buy their own homes. We also aim to expand the provision of gap market
housing opportunities for citizens earning between R3 500 and R15 000 a month.
To achieve this, the Department has entered into an agreement with the National
Housing Finance Corporation which will enable it to plan for the provision of
sites to be developed for those benefitting from the Finance Linked Individual
Subsidy Programme. An amount of R30 million has been set aside for this
purpose.
The national government Human Development
Settlement Grant, which supplies 90% of the funding for this department, does
not fully respond to the shifts witnessed in Census 2011, and the funding
formula will be reviewed affecting allocations in the outer years.
In the forthcoming financial year, the
Department of Human Settlements receives an allocation of R2.149 billion. In
partnership with accredited municipalities, we aim to deliver 7012 serviced
sites and 12 102 houses in the coming year, 4468 of which are through the
People's Housing Process (PHP). The PHP actively involves beneficiaries in the
decision making and building of their own homes, affording them a greater sense
of responsibility and ownership.
The 2011 Census revealed large shifts
toward urban areas, creating an increased need for housing opportunities in
these areas. In line with this, we are developing a densification policy that
is focused on mixed residential units. We will also work closely with banks and
the private sector to close the gap in the property market through an increased
number of rental opportunities. In the Cape Town Elsies River
In order to make our Province a safer place
in which to live, work, learn and relax, we have allocated R1.234 billion to
the Department of Community Safety over the 2013 MTEF. We agree with the NDP,
which states that safety is not only a necessary condition for improved quality
of life, it also plays a crucial role in enhancing productivity. When
communities live in fear, their ability to achieve their full potential is
diminished.
News headlines over the past few weeks have
raised our consciousness around the environment in which we live. Our policemen
and women work under extremely challenging conditions on a daily basis. The
source of criminality in our province has many deep-seated causes, led largely
by poverty, substance abuse and the breakdown of the family unit. To address
these challenges will require a whole-of-society approach.
In the coming year, we will continue to
pursue the passing of the Community Safety Bill which we developed in 2012 to
regulate and strengthen our oversight responsibilities with regard to the South
African Police Service. This Bill, which will contribute to the improvement of
our police services by giving them the support they need to address the
challenges they face, is expected to be promulgated within the coming months.
To further strengthen our monitoring over the prevention and punishment of
crime, we have begun to compile Watching Briefs of high impact courtroom
proceedings to assess where the fault lines in policing procedure occur that
allow criminals to go free.
Over the medium term, we will also conduct an evaluation of policing in the Province through a process of regular inspections of every single police station in the
In partnership with the Safety Lab, we will
look at developing new and innovative solutions and credible data to meet the
safety challenges that plague our communities. We will also contribute
additional resources toward Neighbourhood Watch and Youth for Safety
programmes. Members of these programmes will be placed within policing
precincts and City Improvement Districts to contribute toward achieving safer
environments for our citizens.
Through the Department of Cultural Affairs
& Sport, which receives an allocation of R445.309 million in 2013/2014, we
will contribute to a socially inclusive, creative and active Western Cape
The flagship programme of this department
is its 181 Mass Opportunity and Development (MOD) centres. Through the MOD
Centre programme, which receives an additional boost of R24 million over the
2013 MTEF, we will provide after-school sport, recreation, life skills
programmes for school-going youth and dedicated facilities for them to complete
their school homework. In the coming financial year, we will strengthen 32 of
the Province's best performing MOD centres with additional staff and sport
coaches.
To promote a reading culture and improve
our literacy rates, we will invest R188 million in 2013/2014, R255 million in
2014/15 and R299 million in 2015/16 toward enhancing the Province's 348 library
service points. A significant portion of this will be funded through a ramped
up conditional grant from the National Treasury, which was achieved through the
endeavours of Minister Gordhan and his team, some of whom are present today,
and to whom I would like to extend my sincere thanks. In addition to our
regular services, this allocation will support a growing number of Wheelie
Wagon libraries which supply library services to communities in the most
far-reaching areas of our Province. Total library membership is close to a
quarter of the Province's population, a figure which we hope to increase
through the provision of up-to-date products and internet access points in
these spaces for public use.
Through this department, we will also
support a number of Arts and Culture organisations that are mandated to
identify, develop and showcase the local talent of our citizens through
festivals and special events.
All of the above projects will go some way
toward addressing the many challenges that our people face on a daily basis.
In its final report, the National
Development Plan states that the responsibility for improving our lives does
not rest solely with government. But, to translate this plan in to action will
require a change in the way that government works. We will have to a take an
active role in leading the change toward a better future in combination with an
active citizenry.
Empowering Our Businesses by Growing Our
Economic Competitiveness
Speaker, it is a fact that over
three-quarters of start-up businesses do not reach their third year of
existence. Yet, we rely on this sector to drive our economy.
In 2013/2014, we will continue with and expand our programmes in support of small business.
Through 19 Partnership Network centres
across the Province, the Western Cape Government, in partnership with the Small
Enterprise Development Agency, DTI and local one-stop business support centres,
we will provide advice to new and emerging SMMEs on matters ranging from the
development of business plans to how to apply for finance – some of whom will
qualify for our newly launched R24.250 million Enterprise Development Fund - or
incentive grants. In 2013/2014, we are aiming to provide meaningful support to
hundreds of businesses through this joint venture.
Through Wesgro, our trade, investment and
destination marketing agency, we will also offer SMMEs training programmes on
how to export their products. South African entrepreneurs deliver highly
innovative products, many of which are desired in other parts of the world.
Wesgro will also play a critical role in improving the general competitiveness
of the Western Cape
Speaker, our Agriculture sector – one of
our most low-skilled labour intensive industries - has been hard hit by human
and natural incidences in the past few years. We have witnessed floods,
drought, Avian Flu and Horse Sickness as well as mass strike action in our wine
and fruit industry. To stave off job losses in this sector as best we can, we
have instituted a number of programmes to assist both our farmworkers and our
farmers so that they can continue to play an important role in our economy.
Over the 2013 MTEF, the Department of
Agriculture receives R1.917 billion to target 10% growth in this sector by
2020.
R67.616 million of this allocation will be
directed toward improving our Veterinarian Services to ensure that we are able
to conduct effective and reputable certification and inspections of our
livestock. Through this programme, we will do everything in our power to avoid
a repeat of the mass culling of our animals that has taken place in the recent
past.
Through the work of this department, we
will also prioritise the success of our land reform projects. In 2011, a
departmental survey indicated that more than 70% of land reform farms supported
by the department have secured markets, have record keeping and financial
management systems in place and are operating according to business plans. Only
38%, however, are compliant with labour law and only 50% are tax compliant. In
order to assist our land reform farmers to address these challenges, we will
provide them with financial and labour relations management training.
To offset some of the damage caused to our
wine and fruit industries as a result of the recession and recent labour
disputes, we will provide financial support toward the pursuit of ethical trade
programmes in these industries. We will also embark on a farm worker
development programme that will offer life skills training and development
programmes to over 1 900 farm workers in our Province.
Due to the structural changes that this
sector is facing, we will refocus our programmes toward technical skills
enhancement and development. We will also compile a database of all the
farmworkers living on farms in our Province. This will enable us to identify
and monitor their social needs to ensure that we offer appropriate policy responses
to the challenges they face.
To ensure the sustainability of our future
and create jobs for generations to come, we will invest in the protection of
our environment and promotion of our green economy. In the coming year -
amongst many other initiatives to maintain sustainable development, manage our
pollution and solid waste and protect our biodiversity - the Department of
Environmental Affairs and Development Planning will embark on a process to
improve the water quality of the Berg River
In the coming year, we will also table for
the approval of this house the Draft Land Use Planning Bill. Through this Bill,
we will create the platform for the coordinated implementation of all
environmental and planning legislation relevant to our province and country.
Speaker, in support of growing the
competitiveness of our region, we will also extend the mandate of one of this
government's flagship ventures – the Red Tape Unit. This unit works in
partnership with other spheres of government to reduce or remove those factors
that hinder business activity in our Province. In the coming year, the Red Tape
team will work closely with relevant local and provincial departments to
conduct a Red Tape Regulatory Impact Assessment. Once this report has been
produced, we will look closely at funding solutions that will break down the
identified barriers to business so that more people will invest in our region
and produce more jobs. On Tuesday this week, we had the privilege of presenting
this programme, as well as the Work and Skills programme, MOD Centre programme
and others to the Commissioners of the NDP as Western Cape
Building for Infrastructure to Grow Our
Economy
Speaker, the surest way to drive economic
activity, especially in times of hardship, is to invest in infrastructure.
That is why I am pleased to announce that over the 2013 MTEF, we will increase our infrastructure budget from R3.3 billion to R5.5 billion.
Premier, in your State of the Province
Address, you provided a detailed update on the game-changing infrastructure
plan that we announced last year aimed at attracting investment and creating
jobs.
You highlighted our Broadband Project, which is set to receive an additional R501.931 million over the 2013 MTEF (over half a billion rand!) to deliver high speed internet to government buildings, schools and public libraries. In the year ahead, we will also roll out our pilot Wireless Mesh project in Khayelitsha,
Premier, you also mentioned that in the
months ahead, the Saldanha Bay IDZ is likely to receive official designation.
Already, this project is having an economic impact on this small rural town and
its surrounds. We look forward to receiving more information from the National
Government on proposed new incentives for youth and general employment within
the bounds of IDZs.
To connect rural areas to our economic
centres, to encourage tourism across the Province and to increase the number of
kilometres that citizens travel on good roads, we will spend more than R1.7
billion in the coming year on the construction of new roads and the maintenance
of our existing roads. New road infrastructure projects over the medium to long
term include the Wingfield Interchange, the upgrade of the divisional road
between Gansbaai and Elim, and the road network that will ensure the success of
the Saldanha Bay IDZ.
I am pleased to inform this house that the
Regeneration Programme and Catalytic Infrastructure Programme – two of the
flagship initiatives of this government –are well underway.
Speaker, I am also pleased to announce
today that in this budget, we have set aside funding to undertake four regional
socio-economic projects that will harness the unique development potential of
selected areas in our Province. Given our history as a nation, poverty is
largely spatially divided, a situation that we must make a concerted effort to
address this in the interests of all our citizens. We need a planned,
contextualised and uniform approach by both government and the private sector,
an approach that is based on crowding in rather than crowding out initiatives.
Through these projects, in the coming months, we will identify critical areas
for capacity building, market access and socio-economic infrastructure that
will make our areas work. Due to the particular challenges these areas face, we
have selected Witzenberg, George, Saldanha Bay
In total, the amount we are spending on
public works infrastructure will create an estimated 100 000 jobs over the 2013
MTEF.
We also welcome the draft Infrastructure
Development Bill proposed by the National Government which aims to fast track
the building of key strategic integrated projects with high economic value
across the country. This proposed legislation also signals willingness by
government to invest more regularly in the maintenance of existing
infrastructure which is crucial for securing international investment.
Becoming a Capable, Professional State
Speaker, underpinning all our initiatives
to provide services to the people of our Province, is our goal of becoming the
best run regional government in the world. For us, that means becoming a more
capable and more professional state that is completely free from all forms of
corruption. A society with a corruption-free and transparent government will
create an atmosphere that is more favourable to investment and economic growth.
This will create more jobs and wealth for all South Africans.
Through the Department of the Premier,
which receives an allocation of R853.843 million in 2013/2014, we will build a
solid foundation for the cost-effective delivery of services to our citizens.
Funding housed under this department will
also provide for the shared Corporate Services Centre, Centre for E-innovation
and Forensic Investigation Unit, through which we will investigate and address
all instances of corruption. We will also target improved records management
and systems that will better our decision making processes.
Over the 2013 MTEF, the Provincial Treasury
receives an allocation of R1.672 billion, which includes the allocation for
special development projects which amounts to R1.053 billion. R29 million will
be spent over this period to create additional capacity so that we can
progressively raise the bar on the Province's financial governance standards.
This year, the department will focus on
ensuring conformance to all the relevant prescripts of financial governance and
improving the fiscal performance of Western Cape
An allocation of over R1 billion in the
2013 MTEF is housed within the budget of the Provincial Treasury for some of
the special projects I have mentioned in this speech. This funding will be
dispersed once implementation plans for these projects have been fully
approved.
The Department of Local Government has a
key role to play in building the capacity of our municipalities' to manage
their resources professionally. Through this department, we will give dedicated
capacity training to key municipal staff with a focus on the financial
portfolios. To strengthen access to government services in all areas of our
Province, in 2013/2014 we will improve the efficiency of our Thusong Centres
and Thusong Outreach Programme. With its allocation of R551.951 million over
the 2013 MTEF, the department aims to achieve its vision of developmental and
well governed municipalities with integrated, sustainable and empowered
communities.
Funding Budget 2013
Mr Speaker, in today's speech I have listed
just some of the key initiatives that we will embark on in the coming year to
bring more people into our economy so that they can live better lives. We have
many other plans, which I have been unable to list due to time constraints. I
trust that my Cabinet colleagues will provide further details in their
individual vote speeches.
The Western Cape Government will finance
its proposed expenditure via three sources. The vast majority – over 95% – will
be funded through the Provincial Equitable Share and conditional grants from
the national government. The remainder will be sourced from the Asset Financing
Reserve and Provincial Own Receipts, the latter of which accounts for 4.88% of
the total budget.
Our total estimated income for the coming
year is R43.906 billion, which is R3.026 billion, or 6.89%, more than last
year's revised estimate. Conditional grants amount to R9.589 billion in
2013/2014.
This Province receives R2.163 billion in
infrastructure grants, which must be split three ways – R573.237 million to
roads, R960.465 million to education and R629.786 million to health.
Provincial own receipts are expected to
increase to R2.078 billion this year, of which the main contributors are motor
vehicle licence fees, revenue form casino and horse racing taxes and hospital
fees.
As mentioned previously, Mr Speaker, the
results of Census 2011 indicate that between 2001 and 2011, the Western Cape South Africa
These changes have resulted in the Western Cape
PES transfers to the Western Cape
Last year, through a regulation in our
liquor legislation, we increased the fees that liquor outlets must pay when
applying for temporary and permanent liquor licences. We have done this to
bring our liquor licence application fees into line with those of other
Provinces and to account for inflation.
Speaker, you may recall that my Department
recently published draft legislation dealing with exclusivity within the casino
industry in the Province. Comments have been received from a number of
interested parties, mostly from the casino industry. Following the comments
received we have decided not to pursue the issue of exclusivity. Indeed, four
of the five exclusivity periods have already ended with the last licence due to
expire in May 2016.
We have taken the decision to split the
issue of the relocation of one of the outlying casino's to the metropolitan
area and taxes, which were previously combined, into separate processes. The
Western Cape Eighteenth Gambling and Racing Amendment Bill, 2013 which will be
tabled today deals with amendments to the Western Cape Gambling and Racing Act,
1996 (Act 4 of 1996) so as to increase the rate of tax payable by the holders
of casino operator licences; by a 2 percentage point flat tax rate increase on
each of the six tax bands. The amendment proposes increases to both the amount
of tax and the percentage of the taxable revenue payable. Additional taxation
that will accrue to the Provincial Revenue Fund as a result of the proposed
changes is estimated to amount to R25 million per annum.
Parliament will be approached at a later
stage to deal with the issue of the relocation of one of outlying casinos into
the Metro.
Speaker, in summary, over 80% of our budget
will once again be utilised to deliver social services and a safety net to the
poor.
Conclusion
The Western Cape Government has focused its
efforts on growing the economy and creating jobs because we believe that
creating jobs is the surest and most sustainable path toward the social and
economic inclusion of our citizens. By becoming empowered, they will be able to
live lives of dignity.
Success requires of each and every private
citizen, employer and employee, non-governmental worker and civil servant to
become a direct participant in his or her own development.
As I stated when I began this speech, it
also required of all of us – this province's leaders - to take hands in the
interests of encouraging better lives for all our people.
I would like to extend my sincere
appreciation to Premier Zille for her unwavering support and leadership, and to
my Cabinet colleagues who have the task ahead of them of making this budget a
reality.
I would also like to extend my sincere
thanks to Dr JC Stegmann, the head of the Provincial Treasury, and his team for
the invaluable work they have put into the construction of Budget 2013. Putting
together a budget that truly addresses poverty, incentivises growth and works
toward the social inclusion of all our people is no mean feat.
I would also like to extend my appreciation
to my team at the Ministry for their continued support – day in and day out.
I believe that through this budget,
together we will take giant strides in bridging the divide between the values
of our Constitution and the reality in which we live.
Speaker, it gives me great pleasure to
table the 2013 Overview of Provincial Revenue and Expenditure, Estimates of
Provincial Revenue and Expenditure, the Western Cape Appropriation Bill, the
Western Cape Gazette of Allocations to municipalities, and this Speech, for discussion
and consideration by this House.
I thank you.
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