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FINANCIAL AND NON FINANCIAL INFORMATION – 2007/08 FINANCIAL YEAR AND THE BUDGET FOR 2008/2009 MICRO PRIORITIZATION. 13 May 2008. TABLE OF CONTENTS EXPENDITURE ON CONDITIONAL GRANTS NON FINANCIAL INFORMATION MICRO PRIORITIES FOR 2008/2009 BUDGET. EXPENDITURE ON CONDITIONAL GRANTS.
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FINANCIAL AND NON FINANCIAL INFORMATION – 2007/08 FINANCIAL YEAR AND THE BUDGET FOR 2008/2009 MICRO PRIORITIZATION 13 May 2008
TABLE OF CONTENTS • EXPENDITURE ON CONDITIONAL GRANTS • NON FINANCIAL INFORMATION • MICRO PRIORITIES FOR 2008/2009 BUDGET
TOTAL ACHIEVEMENTServiced stands achieved: 26,830Houses Delivered: 63,487
Gauteng Province Micro Priorities for 2008/2009 Financial Year PORTFORLIO COMMITTEE ON HOUSING
CONTENTS INTRODUCTION HOUSING DELIVERY IN THE CONTEXT OF GPG STRATEGY 2008/9 STRATEGIC OBJECTIVES CURRENT PLANNING CONTEXT STRATEGIC ANALYSIS OF THE OPERATIONAL ENVIROMENT HOUSING DELIVERY TARGETS BUDGET CONSIDERATION CONCLUSION
1. INTRODUCTION In developing our strategy we recognized that the emphasis of housing delivery in Gauteng and indeed South Africa had moved beyond the issue of numbers to the enhancement of quality and building of thriving communities while at the same time trying to turn around the apartheid spatial development patterns that we had inherited We take cognizance of the June 2007 Provincial Exco Lekgotla resolutions which emphases the need to accelerate service delivery while reducing the cost of doing business We also note our achievements informed by the GPG Mid-term report which provides an indication that the department is on track to achieve its targets for the 5 YEAR TERM
3. 2008/9 STRATEGIC OBJECTIVES To consolidate the Department’s efforts towards the conclusion of the strategic plan cycle To develop strategic interventions aimed at optimising performance (accelerating delivery) To realign the Department’s interventions to the strategy, housing demand, current back logs, budget and resources available To develop a basis for the formulation of plans that will be implemented by the Department beyond the current strategic plan cycle – Vision 2014
4.CURRENT PLANNING CONTEXT HOUSING OUTSTANDING BUSINESS BASED ON 2004/9 DEPT PRIORITIES AND LEKGOTLA RESOLUTIONS 1. Mixed Housing Development -acceleration of land acquisition to promote new integrated settlements -reduction of long planning process in order to meet government priorities -acceleration of eradication of apartheid settlements -increased involvement of private sector investment 2. Eradication of Informal Settlements -more resources to meet 2014 targets - utilization of Alternative Building Technology to fast track development and usage of other energy sources -enhancement in the implementation of By-Laws -managing implications of rapid in-migration/urbanisation -de-linking subsidy from beneficiaries & other policy review
CURRENT PLANNING CONTEXT CONT… 3. Alternative Tenure -Conclude and implement strategy for lower income rental -Extend backyard rental programme to more municipalities -Mobilise alternative funding model for hostel redevelopment; upgrade 60 hostels -Role of SHI’s alternatives to SHI’s 4. Urban Renewal Programme -Increase pace of development -massify housing and infrastrucuture development -ensure local economic development 5. 20PTP -Synchronise budget provision across spheres of government -Drive integrated planning -Ensure targets and Premier’s timeframes are met
5. STRATEGIC ANALYSIS OF THE OPERATIONAL ENVIROMENT Difficult conditions within the environment which is characterised by the following: Access to well located land An acute housing demand which is exacerbated by urbanization and in migration Severe delivery capacity constraints i.e. material supply constraints, capacity pressures on the construction industry, institutional constraints of the State A lack of systems aimed at up-scaling alternative building technologies as well as supporting rapid delivery A legal framework which is “unresponsive” to the needs of the Department i.e. a legislative framework which is largely compliance and procedurally based A constrained housing development process which requires that beneficiaries are linked to projects/ units ahead of actual delivery Create an enabling environment for the creation of integrated, sustainable human settlements.
As we strive towards the realisation of the 2014 vision, as a Department we have identified issues that need immediate attention such as; * reducing the cost of doing business with government, * improving the commitment and upgrade skills of civil servants, * improving communication with stakeholders and the public and focus all our projects to fight against poverty and unemployment. To this end, the Department had restructured its organisational structure and design with the view to strengthening it’s support plan in terms of fast tracking delivery from an integrated, all-inclusive approach. Based on the Conditional Grant allocation received from National, it is evident that the Conditional Grant allocation has grown substantially over the past two years, as well as into the MTEF period. However, the operational budget, in order to support the payment towards compensation of employees in terms of new recruits, has not grown in proportion to that of the Housing Subsidy Grant. 7. BUDGET CONSIDERATION
Serious intervention between the National Department of Housing, National Treasury, Provincial Treasury and Housing Sector at large would need to review the Baseline Allocation with regards to the operational Budget in order to have a meaningful inset on Housing Delivery and the quality thereof. Whilst this formula is outdated and not in line with the new Comprehensive Plan for the Department of Integrated Sustainable Human Settlements, the National Department of Housing is in the process of reviewing the formula for possible implementation in the 2009/2010 financial year. However, in response to the challenges of meeting one of the key political pronouncement of eradicating Informal Settlements by 2014, the financial forecasts and funding trend has indicated that this may not be achieved. Funding allocation of three times the existing rate would need to be availed in order to achieve the said target of 2014. Within the context of the Gauteng Department of Housing the forecasts resulting from possible scenarios is depicted hereunder. The Department has worked out three scenarios on the basis of which the priorities of the Department can be delivered, namely: BUDGET CONSIDERATION
9. CONCLUSION • Continuous engagement with both municipalities and private sector on resource mobilization needs to tightened. • Greater emphasis to be dedicated to programmes that would yield high impact, high visibility housing delivery. • Intensification of service delivery should match with greater spending and not conform to the indicative allocation. • Continue to operate outside the confined current status quo such as de-linking beneficiaries to the product. • Our situation demands a unique approach to respond to the needs of the majority of our citizens who have been disenfranchised • We are confident that our government is on the right track in crafting mechanisms to ensure adequate shelter for deserving people of Gauteng.
