The Department of Local Government has a budget of R63,853 million which constitutes only 0,39% of the whole provincial budget. The Department of Local Government's strategy is therefore more skills driven than finance dependent.

Despite the limited budget available our vision is to ensure "Successful Municipalities" and is my theme for the debate within the framework: "Developmental Local Government by Means of Partnerships and Co-responsibility."

In terms of the delivery of our strategic mandate we have accepted the following strategic goals;

• shaping Provincial strategy in respect of local government,
• providing leadership in building developmental local government,
• ensuring local government sustainability;
• facilitating excellent intergovernmental relations,
• enabling legislative clarity,
• facilitating constructive management of the political dynamics, and;
• facillitating and supporting the creation of an effective Disaster Management system.

Transformation of Municipalities exceed expectationsI am pleased to confirm that the most recent data retrieved from the quarterly "Transition Grant progress and expenditure reports" showed that only four of the municipalities outside the metropole, in the Western Cape, experience progress below 70% with the finalisation of key transitional activities. Of these we provide assistance to three municipalities in the finalisation of their key transitional activities. This means that more than 70% of the prescribed actions that were required by the new legislation in terms of transition or establishment after amalgamation, has been finalized. The most common outstanding issues are the finalization of organigrams and the placement of staff.

The need for a new provincial act

Municipalities as well as provinces are currently operating in circumstances where constitutional powers, legislative powers, inter-governmental relations etc are not always well-defined. Mainly two acts currently governs local government but there is still a legal clutter of old laws, provincial acts and ordinances which may create confusion and uncertainty.

These circumstances, coupled with the day-to-day need for guidance on a range of operational and functional matters, have led my Department to conclude that we need a provincial act for local government which should aim to achieve a clear and practical workable definition of the role, powers, functions and responsibilities of local government in the Western Cape and enhancing the efficiency and effectiveness of local government.

Executive Mayor system is in place

I do not have any doubt that with the Executive Mayor system in place at all municipalities in the Western Cape this will further entrench local government equal to the other two spheres of government where there is a final accountability and responsibility. I will deal with the costs of full-time councillors and the Executive Mayor system in my reply as the DA has chosen to make false and ill-informed accusations in the media as to the cost of these systems.

Debt of state departments to municipalities

Excluding the City of Cape Town provincial and national departments owe municipalities approximately R31 million. This is debt beyond thirty days. In many of these cases the municipalities are also to blame as accounts are either faulty or wrongly addressed. I will therefore call on the provincial as well as national departments to settle these debts.

Local Government as the frontline warrior against poverty In terms of the provincial vision of iKapa elihlumayo: Hope, Delivery & Dignity for the Next Decade I remain convinced that our municipalities as the core provider of services can be instrumental in bringing a change in the lives of millions of people in need. I therefore want to call on each and every municipal councillor and official to accept the challenges of developmental local government and to expand their horizons in search of the applicable strengths and opportunities within their municipal boundaries

With regards to poverty alleviation my department plays a crucial role in capacitating municipalities to achieve this and there are various programmes in place:

Khayelitsha and Mitchell's Plain nodal points will see a huge boost of investment

The Department coordinates provincial involvement in the Urban Renewal Programme in the Khayelitsha and Mitchell's Plain nodal points. Due to several obstacles in the past - including lack of political will - this programme has had a slow start.

Our latest audit of provincial commitment has revealed that the provincial government of the Western Cape has committed a share of approximately R1,4 billion of its total budget for service delivery in these two nodes. The R1,4 billion is divided into R710 million for Khayelitsha and R687 million for Mitchell's Plain.

A process to optimally focus the provincial expenditure on the specific needs and objectives of the areas as articulated by the local development forums is in progress in co-operation with the City of Cape Town and after consultation with the City more details with regard to specific projects will be made available.

Central Karoo will serve as benchmark for the country. The Central-Karoo is a rural development node in the Integrated Sustainable Rural Development programme. An audit of provincial commitment indicates that the provincial government of the Western Cape has committed R100,8 million in the Central Karoo. This nodal point is extremely successful and this is due to the good co-operation between the different spheres of government. This development node serves as example for other development nodes in the country and must be seen as a excellent performance for the Western Cape.

Municipal infrastructure is developed but do not neglect existing infrastructure

The Department of Local Government is coordinating the Consolidated Municipal Infrastructure Programme (CMIP) - a programme developed to support municipalities to provide for new infrastructure as well as the rehabilitation and upgrading of existing infrastructure, with a particular emphasis on disadvantaged areas.

The allocation for Infrastructure for this financial year is R183,7 million and municipalities have identified a shortlist of 179 infrastructure projects.

I am however concerned about the lack of maintenance of existing municipal infrastructure and the subsequent deterioration of municipal infrastructure. Municipalities must budget for maintenance and must consider it as a priority. This is however the first budget item to be cut when other needs arise within a municipality. We do have good municipal infrastructure in the Western Cape and there is a duty on all of us not to neglect it. It is therefore necessary to investigate this tendency as well as the decline in qualification levels of technical personnel at municipalities. This my department is currently doing.

Western Cape municipalities have performed with free basic services.

In the Western Cape all 30 municipalities provide a certain amount of free water to their indigent households. Let me therefore congratulate our municipalities and give Minister Ronnie Kasrils the assurance that the municipalities in the Western Cape will not be on his name and shame list.

Only ten municipalities do not provide free electricity, the main reason being that Eskom provides it directly to the consumers. A free basic electricity policy is officially set to take effect as from 1 July 2003. The official roll out of the Free Basic Electricity/Energy Policy of the Department of Minerals and Energy will commence with effect from 1 July 2003 and the guideline is 50kW of free basic electricity/energy per household per month. I must however emphasises that each municipality must still take affordability and their own circumstances into account.

Although sanitation and refuse removal have as yet not been approved as "free basic services" 24 municipalities in the Western Cape provide free sanitation and refuse services to poor households. Once again a wonderful achievement by these municipalities.

I am pleased to announce that the investigation by Prof. Lieb Loots into the provision of free basic services in the Western Cape, for which he was appointed last year, has been completed. My department is presently studying the draft report and recommendations and I will make further announcements concerning these recommendations at an appropriate time.

Our aim is to produce a guideline document on the level of free basic services municipalities should provide and the affordability thereof, incorporating an indigent policy that can be implemented universally by all municipalities in the Western Cape. Our example can be used as a blueprint for other provinces to follow.

Reduction in consumer debt

Consumer debt to all municipalities in South Africa is now at almost R22,5 billion. Consumer debt affects all municipalities throughout the country. The Western Cape is no exception. However, it is gratifying to note that for the quarter ending 31 March 2003 there has been a reduction in the consumer debt by 11,88% as opposed to the figures for December 2002 if the figures for City of Cape Town are excluded.

The financial position of most of the municipalities in the Western Cape are relatively sound. However some municipalities are receiving comprehensive management support from my Department and excellent results have been achieved. For the current financial year an amount of R15.1 million will be made available through the MSP to municipalities which are lagging with their transformation activities and or encounters serious financial problems.

Municipalities have gone through a period of instability when councillors crossed the floor. Stability has now returned and councillors - from all political persuasions - must keep their eye on the ball. Local government is now firmly established after 30 months and it will be irresponsible for political parties and political role-players to interrupt the final transition phase of local government.

I am confident that the budget for the Department of Local Government for the year 2003/2004 will enable us to start our journey as the new Department of Local Government to ensure successful municipalities.

Appreciation to fire-services in the Western Cape Every member of the media and every member of the House will receive a coffee mug on which a fire-engine is printed. As Disaster Management is my line function responsibility it is a token of appreciation my department is expressing to recognise and thank all the fire-fighting personnel for their total dedication and commitment which sometimes exceeds the call of duty. We also want to honour all those who died in the line of duty whilst serving their communities.

In perspective the following must be mentioned and is an indication of the amount of fires our emergency services have to deal with. These are fires in the period 1 April 2002 to 31 March 2003:

Boland District Municipality

• 325 Veld and forest fires
• 35 Structures

Central Karoo District Municipality

• 4 Veld and forest fires

Eden District Municipality

• 21 Veld and forest fires
• 1 Structure (hotel)

Overberg District Municipality

• 875 Veld and forest fires
• 133 Structures

West Coast District Municipality

• 1 Mountain fire
• 33 Structures

City of Cape Town

• 2193 structures (Excluding vehicles)
• 5357 forest, grass and refuse fires

We want to thank them for their dedication and their commitment. When you use the mug please think of those personnel who are busy with fire-fighting, assisting in the plight of those who have been affected by floods, and helping people in time of tragedy.