Report of the Select Committee on Public Services on Budget Vote 26: Department of Human Settlements, dated 25 August 2009

Having considered Budget Vote 26 of the Department of Human Settlements, the Committee reports as follows:

1. Introduction

On 26 June 2009, the Select Committee on Public Services met with the Department of Human Settlements to consider Budget Vote 26.

2. Objectives of the Department

The aim of the Department of Human Settlements is to determine, finance, promote, coordinate and monitor the implementation of housing policy and human settlements.

The Department aims to meet Government’s constitutional responsibility of ensuring that every South African has access to permanent housing with secure tenure, privacy, protection from the elements and access to basic services.

2.1 Strategic Objectives

The reviewed mandate of the Department informed the strategic intent and strategic objectives to focus the Department in its delivery efforts and to strategically align the organisation in terms of the internal structure, systems, processes and procedures as follows:

a. Accelerate the delivery of housing and integrated sustainable human settlements.

b. Utilise housing delivery as a catalyst for major job creation and economic growth.

c. Ensure residential property is accessible to all to alleviate asset-poverty and create wealth.

d. Promote social cohesion and improve quality of life for all in sustainable integrated human settlement.

e. Mainstream alternative technologies and innovative planning for sustainable human settlements.

3. Key challenges facing the housing sector

f. Growing housing backlog.

g. Insufficient inter-governmental co-ordination for accelerated delivery.

h. Inadequate capacity in provincial and local spheres of government to deliver on national priorities.

i. Lack of capacity in the department to monitor and evaluate the housing programme.

j. Insufficient capacity at provincial and local government level to administer the housing subsidy scheme.

k. Absence of best-practice models for expeditious delivery of housing.

l. Poor planning and project management capacity I provincial and municipal spheres of government.

m. Lack of technical expertise for unblocking housing deliver bottlenecks and fast-tracking projects to upgrade informal settlements.

n. Supply constraints in the construction industry.

o. Challenges of transformation, alignment and co-ordination.

4. Concerns

Having considered and deliberated on the Departmental Budget Vote 26, the Committee noted the following:

p. The capacity of the Housing Development Agency (HDA) to utilise the allocated budget of R49.5 million, since its inception at the beginning of the current financial year.

q. Thubelisha and Servcon had ceased to exist and were expected to be replaced by the HDA. The budget indicated funds allocated to Thubelisha and Servcon, and a concern was raised about the responsible body to oversee the function.

r. The creation of a unit within the Department to facilitate projects specifically targeted for women and youth.

s. The housing cover for military veterans, as there would be a certain quota per province.

t. Farm workers needed to be educated with regard to the housing policy and their rights to land.

u. The rapid growth of informal settlements, especially in unsafe areas.

v. The provision of legislation to assist with the eviction of illegal occupants.

w. The budget reflected a decrease in funds allocated to improve the Department’s capacity to deal with inter-governmental relations.

x. The involvement of the Department in dealing with the mandate of different spheres of Government, specifically with regard to housing.

y. The challenges experienced at the N2 Gateway and the Khutsong Resettlement Projects and mechanisms in place to prevent recurrence.

z. The decrease in funds allocated to improve the Department’s capacity to deal with inter-governmental relations as the needs of the poorest members of society, in terms of land acquisition, were often ignored.

5. Conclusion

The Committee urged the Department to recommit itself to the intervention programme as it played a vital role in assisting provinces and municipalities in service delivery. Furthermore, as a matter of urgency, the Department should combat the settlement of dwellers in unsafe areas.

Recommendation

The Committee, having considered Budget Vote 26 of the Department of Human Settlements, recommends that Budget Vote 26 be passed.

Report to be considered