SPEECH BY LN SISULU MINISTER OF HOUSING AT THE HANDOVER CEREMONY OF HOUSES AT THE OLIEVENHOUTBOSCH HOUSING PROJECT

30 March 2007

Master of Ceremonies
Member of the Executive Council for Gauteng, Nomvula Mokonyane

The Executive Mayor of Tshwane, Dr. Gwen Ramokgopa

Chief Executive Officer of ABSA, Dr. Steve Booysen
Invited guests

Comrades

Friends
Ladies and Gentlemen:

A year ago we came together at this same place to launch this project. The place was a barren dusty place, held together by nothing more than our dreams and our mutual commitment to turn it into a beacon of hope for the future. Today we record the significant stride with 250 houses.

We noted then, as we note today that the significance of the project lies in the fact it reconstructs and consummates a necessary relationship that for purposes of a better life for all would have to exist between government and the financial institutions. Of equal importance, is the fact that it places banks in the role where they are no longer seen to be discriminatory against anyone, wherever they live or whatever the colour of their skin.

Given the circumstance of the majority of our people, that as we know arise from the legacy of apartheid, it would be a crime to deny them the opportunity to have secure and decent homes. For this would mean that not only will the legacy of our past be made indelible in the landscapes of our urban and rural spaces but also that the past itself continues under new conditions.

What the history of our country tells us and confirms is that the homelessness of our people is not a natural development. It is the result of decisions and actions that were taken by human beings deliberately to disadvantage others. By the same token, its defeat will be the result of decisions and actions we take deliberately and collectively to advantage everyone but particularly to remove the disadvantages from most.

The growth of informal settlements necessitates that we are seen to be at the forefront of initiatives aimed at tackling the challenge. This is essential not only to prevent failure to provide adequate shelter and housing but also to indicate interest in putting the country on a sustainable growth path. And as this project demonstrates that can only be done through the route of creating sustainable communities.  

No other period in our history has burdened us this much with this responsibility. In this regard we have been called to provide not only leadership but also good vision that is biased towards the poor, whether we are in the public or the private sector.

I am glad that ABSA took these necessary decisions and actions with us as government when we called.

Being encouraged therefore by the positive response we have received as government from ABSA, affirming that the legacy of imposed poverty must firmly be eradicated, and speedily so, I am in a position to commend them for the steps taken thus far.

When he spoke here last year, Steve Booysen indicated that this would only be the first of a series of projects his bank will be jointly undertaking with government in the form of a public private partnership. He indicated that a total investment of R12bn is being targeted by ABSA by 2008.

In terms of the agreement for this public-private-partnership, ABSA undertook to make land available for the development of the project and develop the bonded houses whilst the City of Tshwane was to develop the low-cost houses. As national government we committed ourselves to do all that was necessary to expedite the project and to facilitate coordination between the respective government departments.  Happily, this relationship has been a productive one.

           The project therefore, in accordance with the Breaking New Ground Plan, addresses integrated development. It is a mixed housing project. Its implementation is to achieve 70 percent black ownership and have 30 percent  female participation. Also, it provides opportunities for SMME participating in the areas of supply, manufacturing, contractors, sub-contractors, as well as services of skilled and unskilled labour.

The Breaking New Ground Plan is a holistic plan aimed at improving overall housing delivery through the acknowledgement of the gaps that existed up to 2004 at all levels of government.  And some of the results of the BNG can be seen in the trends in housing delivery that include government working with the private sector towards the development of inclusive housing developments.

Today, the typical BNG starter house will have a minimum of two bedrooms, a living area and inside bathroom.  In this wat we believe our people will be provided with a decent starter house which they can then enhance in time as and when their finances allow it. I am absolutely delighted that in the houses we have today, we can show that quality is attainable. 

The point has been made often enough that both the demand for housing and the housing market has changed but that unfortunately, the benefits of a buoyant higher end property market have not been felt by the poor.

If wealth creation is to be stimulated amongst the current beneficiaries of the programme, then the housing asset needs to have functional value, a usable physical asset to create social and human capital and an exchange value, an ability to create financial capital.  And hence, significant public investment and substantial private sector collaboration are called for.

We are making significant strides in our work, not only of providing houses, but of converting South Africans of the importance of housing as an essential element in our development.

Earlier this month it was with extreme pride that I listened to MEC for Finance in the Western Cape, when she said in her budget speech:

“Housing is ranked as the most important infrastructure priority, above roads, community facilities, basic services and (other) social services infrastructure …”

That was music to my ears.  If we could get all those who control our finances to think this way, our job would be done.  And may I hasten to add, when I say those who control our finances, I include the banks.

In my relationship with the banks, I had begun to believe that men are bigger on promises than they are on commitment.  That this is generally true can not be questioned.  But I have allowed myself the occasional space to be proved wrong and Steven and his team have utilised that space to outdo themselves.  I am promised that when the project is complete, next year at about this time, there will be 5 480 units and will be the perfect showpiece of our new policy.

As before therefore I would like to thank the bank and its staff that through dedication continues to show us that our dreams collectively are possible. I have also noted the contribution to the project of Gauteng and the Tshwane Municipality.

When we were here last year, the City of Tshwane was represented by Father Smangaliso Mkhatshwa, who was Mayor at the time. You will note that even though the chairs on the deck have changed, the Municipality continues to be represented at its highest level, through the new Mayor, Dr. Gwen Ramokgopa. This all goes to demonstrate the seriousness with which government views the involvement of all its three layers in integrated development and planning that would enhance relations with the private sector.

To the beneficiaries, may I congratulate you all and thank you for your perseverance and understanding.  I know we have had challenging times and we still have challenging times ahead.

I thank you very much.