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MEC spells out plans for Wild Coast
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT
 SPEECH BY  MEC GODONGWANA
 SPELLING OUT PLANS FOR WILD COAST
 8 MAY 2001


THE MEC RESPONSIBLE FOR ECONOMIC AFFAIRS, ENVIRONMENT AND TOURISM:

Mr Speaker ngala mini ndandibeka ibhajethi yeli phondo yile mini ndaqala ukunyukelwa yiswekile. Hayi noko ndiyayisebenza.And also in the 
light of these constructive inputs and criticisms I think all of them have been constructive. I became disarmed once people do that because 
I normally want to take a battle head-on.

What I want to do today is to deal with some of these issues but start by saying what one of the honourable members has correctly captured 
basically what our role is. And that is to facilitate economic growth and development in the province.This we have to do against a 
background of acute poverty and huge backlogs in physical and economic infrastructure.

I must emphasize that our role is to facilitate and assist to create the necessary and conducive environment for all these things to 
happen. That is important. Therefore Honourable Mr Nel we agree on these things. You are saying UDM is offering assistance but we are still 
at the level of generalities. We can all agree job creation, job creation but what is the detail? How does one translate that into a 
workable plan? It will be useful to go beyond the level of generalities to come with a specific plan of action. We will always be 
constructive towards those debates.

I was showing the Honourable for Education the other day. Honourable Mr Trent had been shouting at us around the voucher system on 
Education. I have done some reading and see the most of the OECDA economies are beginning to take that route. I said irrespective of our 
disagreement with Honourable Mr Nel this seems to be the international trend. So if the view is a constructive one, one has to take that 
into account. But I am saying your point is at the level of generalities.

To try and give effect to some of these things we have for instance as a department established what is called SDIs and IDZs. In that 
process we have namaged to make some mistakes. We have learnt out of need and have made some achievements. But we also draw some lessons 
out of that. The fundamental lesson that one has learned in the SDIs is that the primary conceptualization of the SDIs has been investment 
promotions. But in the process of dealing with these things, things have changed.In fact the SDIs are not necessarily investment promotion 
terrains. They are actually what? Development prospective we are talking about development of people.

So for me it is no longer an investment issue it is development and enhancement of the communities. What does that perspective do for 
us?That perspective has assisted us into thinking these issues through and differently. And we have managed therefore using the SDIs to do 
what is call ed to lock and mobilize resources from National Department, from parastatals. In enhancing development in these communities I 
want to jus show a few examples.

Over the past few years for instance in the Wild Coast SDI we spent approximately R80 million on the road networks alone. We also managed 
to pull last year alone approximately R11 million into water projects. In the current financial year using Gugs funds as well mobilizing 
every resources around these communities we are going to spend about R43 million. CIMEC(?) projects alone is going to be about R12 million. 
And roughtly approximately R26 million on water projects, R4 million again from the Department of Public Works, which is linked purely to 
the SDI. Clearly showing that we are beginning to enhance these communities.

I am excluding in these reflections I have taken Port St. Johns, Dwese, Coffee Bay and all these areas.I have excluded Umkambati where we 
are lucky to benefit about 65 000 communities. Again the Umkambait plan is almost complete as well we hope if it succeeds it is going to be 
part of the rural development strategies. We are also working with the National Department, the Chief Directorate for bio-diversity and 
world heritage including the broader Pondoland park. That is one of the areas we are looking into.

So Mr Speaker our intention is to have planned and proper development in those areas. Therefore our actions against what we call illegal 
quotages must be seen in that context to ensure planned and proper development. Kufuneka sisebenzisane ke ingakumbi nina aba be-UDM 
ukwenzela ukuba eza Nkosi zisebenzisane nathi asithi mayingabikho I-development mayibe-planned bayeke ukuthenga abantu ngembhodlela 
yebhuranti.

Phase one of that project therefore has been focused on arresting those people for trespassing. We have made approximately 26 arrests.Eight 
of those people have voluntarily demolished those structures. Phase two we are proceeding with actions against those who have refused to 
court action to remove their structures.

We are also working with the Industrial Development Corporation, supported by the French Government, to stimulate tourism development 
products in Port St. Johns, with specific reference, and supported by the French Government there.

Mr Speaker, all the initiatives are indeed intended to enhance the quality of life in these communities and that is development. So I 
wanted just to make sure that I can brief Honourable Members and about changing perspective and what we are doing in particular.I intended 
today to focus on one area, which has not been a major focus. I am intending t try on Coega andso on just to focus on what is happening in 
the Wild Coast SDI. This has had some impact on putting money in peoples pockets.

Turning to the issue of procurement policy in the parastatals, I find it strange that some of them I have just called them today before 
coming here and said why did you not give the Standing Committee the procurement policy? And I want to say all of them are going to bring 
those copies to you. The Gambling Board has a copy here. It may be flawed, if indeed it is flawed it does not mean therefore is no policy. 
It may be flawed and I said I am going to give it to honourable members today. If it is flawed comments from the honourable members are 
welcome.

The process of transferring the reserves.I think by now for me and I am ashamed we are the only province which is still run within the 
department. Nowhere else are reserves run directly from the department for a number of various reasons which we have articulated in this 
House. In fact our departments have taken too long to move because the decision to do this was taken in 1998. It is purely not feasible 
that one can run if there are tourists in Umkambati to use a license same bureaucratic structures of Government. Clearly we are odds, we 
are the only province and therefore this decision is taken in line with all the other departments. This we mentioned in the policy speech.

There may be a problem in terms of the institutional arrangements. The institutional arrangements that we are making in the policy speech I 
made it absolutely clear that the Legislation is in place to harmonize the Cape of Good Hope, Ciskei, Transkei Legislation. That is what we 
are doing. That is where we are going to deal with the proper institutional arrangements. That is contained in the policy speech.

Also we intend to speed up the process of revenue retention in these areas, in the reserves and I think we have said so in the policy 
speech including hospitals. Those are the areas we are looking at, also piloting and ensuring revenue retention. And possibly therefore 
things that will derive an incentive for people to raise revenue.

Cultural diversity of our province we are also like any other one else committed in that regard. And I must say in respect of the area 
under discussion lack of coordination in my department must come first, because the department is involved with the National Department to 
the poverty relief projects in the funding of that project. The problem is to what extent are we bringing the Tourism Board to part of 
marketing that project and I think it is a point that has been raised by the committee. We welcome that constructive criticism.

On the question of outsourcing, I think at the core of the SDI programmes we have been saying part of it is to outsource the hospitality 
functions so that we leave our people to deal with conservation not to run chalets and that kind of stuff. So that has been policy over the 
years.

The funding issues over tourism and investment, the points are taken. We welcome those issues. As I can say the issue is part of what we 
have said in the policy speech and budget speech that there has been in the past few years a kind of belt tightening particularly by the 
community services. As resources become more and more available we want to change the baseline of the economic departments and I think in 
this particular financial year we have started that practice. As we do that the more funds arelikey to come into these services.

On the IDZ proclamation for it to exist it must be proclaimed in terms of the law. That is in respect of Coega. Already public hearings are 
taking place.We have applied for two things. One is the proclamation of the area to be an IDZ. Secondly, is a permit to be an operator for 
the Coega Development Corporation. The issue shareholding currently is National and Provincial Government. Is there scope for the private 
sector? Yes!  The question what are the details? At the moment one of the companies which has to in terms of the defense procurement 
programme has made some overtures I am not prepared to name them. I have learned a great lesson these days is that I will not mention 
anyone until there is a sod-turning ceremony. We are having serious an sensitive discussions with those companies in terms of bringing in 
some private operators. No problem.

Romatex versus Airport. The Airport is not that one. The old Airport here where there was an old Airport here, not the big one. The big one 
I am going to come back to that one in a moment.

There is a question of Agriculture, contribution to GDP. I do not have the figures upfront but both primary production including 
agriculture and minerals as a percentage of GDP as a national level, are declining.Okay? But it does not follow that is the case at a 
provincial level because in our own environment we rely on two main issues, metal fabrication and agriculture. So I do not have the 
straight figures, honourable Ms Nash, I am just going to deal with that question. I will not have the figures upfront in that regard.

In relation to the use of Bisho, the honourale Steven, is that clearly at the moment one of the challenges facing the Eastern Cape is 
international passengers and freight capacity. And Bisho has the capacity for both. The question how can one utilize that effectively? We 
tried! TUI in Germany wanted to charter flights directly to Bulembu and National Department some of them could not agree with us 
particularly National Department of Finance at the time. Because the tendency is to say we do not many entry points into South Africa. We 
have an Airport license for PE. They were saying either you take the PE one or nothing. That is the debate. I think the atmosphere has 
changed. We may have to utilize Bisho, quite effectively it is an issue we are discussing with the honourable MEC. But it has the potential 
to be an international gateway for export of various specialized products.

The Consumer Tribulan people must assume that the publication this week reflecting the nominations and calling for objections.We have done 
the publications in that regard.

The Honourable Mkabile in relation to micro industries the points are taken, I agree with him entirely that we cannot afford to delay 
payments.Those people are small they cannot even afford the cashflow that hey can absorb even 60 days. Failure to this would just destroy 
them.

On the question of how much they are going to get out of the budget is not for me to say.The point is to have this key and be innovative as 
business people. This is what they are supposed to do and say we are tabling R17 billion. Each one of them must say how much of that is 
going to via my till. And they have to be aggressive in that regard. Government can only create the necessary environment. We have done 
that.Our procurement policy is in law give preference to these people. Then it is for them to be aggressive.

Towards my last points Mr Speaker is the ECDC issues. And I think it is quite important, I have taken note of the meeting with ECDC, and I 
have informed management accordingly. But I want to make the following points is that with the merger, both ECDC and CIMEC we have created 
four sub-divisions. One is going to deal with the financing  loans and that kind of stuff.And we are beginning to partner with private 
sector operators, already three building institutions have said to us listen we are willing to be partners with you. The problem is the 
classification of the ECDC in terms of the Public Finance management Act. We are dealing with that issue in terms of re-classifications.

There is an investment promotion area, which is going to be a focus area. There is going to be trade promotion in business support areas.

There is going to be a property portfolio and this property portfolio we hope to link with people who have expertise in the property 
industry on a joint venture basis in terms of management .

So we hope that through two of these four arms we will be able to be self sufficient to do cross-subsidization for the two other areas.That 
is the kind of strategy that we are dealing with .

Lastly on the arms issue, it is quite important for the honourable Mr Nel to know that the decision to purchase arms was not taken in 1994. 
It was taken even before 1994. The only difference at the moment is that the nationalist where Mr Nel belonged wanted them to sell to the 
Spaniards and in exchange we are going to get 50 fishing boats and going to go buy some coal in &#133;. That is all.

So it is quite important that you have not left your baggage behind. In debating these issues you must understand the history. What we did 
was to change the parameters how it is going to be financially and make sure of the benefits for the South African population. We did not 
take that decision.We changed only the parameters for us to benefit out of that. I remember pretty well because I was the General Secretary 
of Numsa when I wrote a letter protesting on the industrial implications of that strategy, which was inherited from the Nats. So it is 
quite clear that when we discuss these things we must take some history into account.

Mr Speaker, finally I would like to thank my Chairperson. In fact, he predates me as Chair of this Committee, as MEC. He has therefore been 
useful person being my coach on a whole range of issues. So thank you for your support honourable De Wet. We must also thank the honourable 
members of this committee for their support, it seems to be a strong committee who has not been changing so far.

The last person that we need to thank, which I have not thanked in any of these meetings, is Terrence Primo. It is worth saying he has been 
quite a useful asset. He is doing quite formative work even this he brought over the weekend. We said to him he had to take time and send 
me a report even during the weekend when I wanted him to. And that is the kind of flexibility we need from officials and I think he 
deserves some praise I thank you.

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