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Policy Speech Economic Affairs
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT

DEPARTMENT OF ECONOMIC AFFAIRS, ENVIRONMENT AND TOURISM

POLICY SPEECH 2000-2001

15 MARCH 2000



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* Introduction

Mr. Speaker, Honourable Premier, Members of the Executive Council and Members of the Legislature, it is with pleasure that I present to you 
the Policy Speech for the Department of Economic Affairs, Environment and Tourism for the period April 1 2000 to March 31 2001. We all 
note, with some relief, that we appear to have survived the transition to the new millennium without any serious difficulties!

All Provincial Government Departments have been engaged in a process of Strategic Planning and Human Resource Development Planning for the 
period that lies ahead, and we look forward to implementing those plans in a spirit of applied co-operative governance so as to maximise 
their combined effect on service delivery.

Our Provincial economy cannot escape the consequences of events and trends in the national and international economic environments; whether 
these are positive or negative. The resilience of the national economy, supported by sound policies of fiscal discipline, enabled South 
Africa to weather the effects of the 1997/98 Asian financial crisis, and its subsequent contagion of other emerging markets, to the extent 
that GDP growth, having slowed to barely 0.5 percent in 1998, was estimated at 1.3 percent for 1999, and projected to 2.9 percent for 2000. 
In fact, revised estimates suggest that the countrys GDP growth rate will be more than 6 percent for the 2000/2001 period.

These estimates are based on increased production trends in the agricultural sector [mainly in the areas of fruit, vegetables and animal 
products], and a modest increase in the manufacturing sector [mainly in motor vehicles, textiles and food products]. These sectors of 
positive growth constitute significant components of the Eastern Cape economy, and have resulted in clear benefits, particularly in the 
local motor industry, which has secured important export contracts, for both vehicles and automotive components.

Furthermore, the inflation rate shifted downward during 1999, and core inflation averaged only 8.0 percent, which is the lowest it has been 
for three decades. Interest rates also declined to 14.5 percent in January 2000, from levels of 16.00 to 18.00 percent in mid-1999, 
bringing welcome relief to mortgage bondholders.

On the downside, the international price of oil increased sharply from under US$ 10.00 per barrel in January 1999 to over US$ 31.00 per 
barrel in February 2000; and is expected to remain at these levels for the immediate future. This has resulted in a significant increase in 
the price of petrol, diesel fuel and paraffin, which is expected to induce a ripple effect of cost increases in the national and provincial 
economies in due course. In this regard, we applaud the corrective action taken by the Minister of Mineral and Energy Affairs, in late-
January 2000, to curb the upward spiral of petrol and diesel fuel prices.

Formal sector employment growth has not occurred at the rate required to stem the tide of joblessness throughout the country, including the 
Eastern Cape, and this remains a serious concern for the Province. A mid-1999 report to the East London City Council estimated that 800 
industrial sector jobs had been lost at key manufacturers in the City. This is part of a three-year trend which indicates that more than 
half of East London businesses expect to lay off workers over the next two years. Such circumstances are by no means confined to East 
London, and are evident throughout the Province and the country as a whole. No doubt, job creation remains a key imperative in our overall 
strategy for economic growth and development.

All of the motor vehicle manufacturers that are represented in the Eastern Cape; namely, Daimler-Chrysler, Delta, Samcor and Volkswagen, 
secured major new export contracts during 1999, or extended and consolidated existing export contracts. In addition, the Provinces motor 
vehicle component suppliers have also extended their markets through exporting into the global supply chain. The Motor Industry is of 
critical strategic importance to the Eastern Cape and is in the process of implementing a five-year development programme that will 
ultimately be worth more than R 4 billion in productive investment.

In his State of the Nation address of February 4, 2000, President Thabo Mbeki made reference to a number of developments and trends that 
will undoubtedly have benefits for the economy of our Province.

The programme that he articulated focuses on the following key areas:

* Investing in infrastructure;
* Enhancing and broadening participation in the economy through black economic empowerment, Local Economic Development and Small and Medium 
Enterprise
* An urban renewal and rural development strategy;
* Investment promotion and industrial development.

Together with our State President, we must work towards addressing the "ever urgent questions of economic growth, development, job creation 
and poverty reduction".

* Provincial Economic Strategic Perspective

It is perhaps appropriate that we reflect on the strategic framework that guides the overall operations of our department. The Department 
of Economic Affairs, Environment and Tourism has adopted this strategic perspective in the context of the National economic imperatives 
outlined above, and was informed by conditions in the Province, including the priorities of the Government of the Eastern Cape.

The core elements of the Departments strategic perspective are the following:

* To promote spatially focused investment strategies that concentrate resources in specific geographical areas through a "crowding in" 
process. This refers particularly to the Wild Coast SDI, and to the East London and Coega Industrial Development Zones;
* To focus attention on exploiting and extending the Provinces competitive and comparative advantages; for example in the motor vehicle 
and motor components industry, and in processes which add value to local primary production;
* To improve the competitiveness of existing economic activities, particularly in terms of promoting inter-industry collaboration through 
the industrial cluster process;
* To facilitate access to new opportunities in the small and medium-sized business sector;
* To promote and encourage new investment in the Province, especially [though not exclusively], foreign direct investment;
* To ensure that appropriate infrastructure investment is undertaken in order to improve the prospects for growth-generating investment by 
the private sector;
* To promote a co-ordinated approach to human resource development and capacity building in order to ensure a measure of alignment with 
industry skills needs;
* To undertake a process of internal organisational and administrative re-structuring in order to improve the Departments efficiency, 
competence and service delivery capacity.

* Some Highlights of the Year

Despite obvious resource constraints, the Department has been able to enhance its effectiveness and increase its impact on developments in 
the Province through strategic realignment of activities and resources between the Department and Parastatal organisations.

Development and planning processes in the Wild Coast SDI were continued according to schedule, and several major projects will be brought 
to fruition in the near future. The Closure of Deals for the Mkhambati Nature Reserve, Coffee Bay, Dwesa-Cwebe and the Enviro-Park at 
Double Drift form part of these developments; and the Declaration of Preferred Bidders and contract awards for the Silaka, Port St Johns 
Town Entrance and Hluleka projects are on course.

The finalisation of Community-Based Legal Structures and the registration of Community-Based Trusts has involved a necessarily slow process 
of consultation and capacity-building; and the Mkhambati, Port St Johns and Dwesa-Cwebe Trusts will be the first to be operationalised. 
Clarity regarding land tenure issues, community revenue-sharing and job creation proposals are the main obstacles to finalisation, but 
considerable progress has been made in these regards. The implementation of infrastructure projects through the Poverty Relief Fund and 
short-term job creation opportunities through the Working for Water Project, were implemented and contributed towards a broader 
understanding of, and familiarity with, the overall nature of the Wild SDI programme. Close co-operation was established with several 
community interests regarding SMME opportunities in the Arts and Crafts Industry and in Agricultural projects.

Much remains to be accomplished in the Wild Coast SDI, and the closer involvement of the ECDC, CIMEC and the ECTB, through the Departments 
revised and re-aligned operational structure will contribute towards progress in these areas. Loans to the value of R20 million were issued 
by ECDC to SMMEs resulting in an average loan of R20 000 per loanee, with 5 jobs created per loan application. This translates to 5000 
direct employment opportunities and a further 15 000 when considering the multiplier effect.

Several Local Economic Development Initiatives, involving Local Authorities and Community-Based Economic Development Forums, were set up or 
extended during the year; including the establishment of Local Business Service Centres [LBSCs], Manufacturing Advisory Centres and other 
SMME-related Service Providers. This is an area which will benefit enormously from the re-alignment of the ECDC and our Regional Offices.

As far as Industrial Development is concerned, the DTIs Tax Holiday Incentive Scheme came to an end in September 1999, and we await an 
announcement regarding new investment incentives that will be provided through the DTI. Nevertheless, the Small and Medium Manufacturers 
Development Programme [SMMDP] continues and has been improved upon.

The Manufacturing Development Board reported that the Tax Holiday Scheme and the SMMDP incentives resulted in over R 440 million worth of 
industrial investment in the Eastern Cape, mainly in the Motor Vehicle Component and Textiles & Clothing Sectors. Well over 90 percent of 
this investment went to the East London and Port Elizabeth areas, which highlights the imperative to undertake industrial development 
projects that will bring benefits to the more remote small towns and rural areas of the Province.

Quiet, but steady, progress has been made in the Provinces two Industrial Development Zones [IDZs], one at Ngqura [Coega], near Port 
Elizabeth; and the other in the West Bank area of East London. Regulations for the establishment and licensing of IDZs were published by 
the DTI during the year, and the Port Elizabeth and East London IDZs will submit applications to be registered and licenced. The Emonti 
Local Industrial Park project has now been linked to the East London IDZ, and will provide opportunities for small manufacturers to grow 
and develop in a dedicated industrial environment.

The benefits associated with Industrial Cluster Initiatives have now been well demonstrated in the Motor Vehicle and Components industry. 
Significant inter-firm collaboration and strategic co-operation has resulted in major new investments in the Province, as well as in plans 
for the future. The Industrial Cluster Initiative principle will continue to be promoted and facilitated in key industries, especially 
those associated with Primary Production prospects.

After a successful restructuring process in early 1999, where staff managers became directly responsible for the promotion of specific 
industrial sectors, as opposed to being responsible for various support functions, the Centre for Investment and Marketing in the Eastern 
Cape (CIMEC), achieved a record year, almost doubling the number of small and medium sized foreign direct investments attracted into the 
Eastern Cape and value. In total, 19 foreign companies established themselves in the Eastern Cape through the CIMEC channels. This 
represents an FDI of R120 million. Along with this 3800 direct jobs were created. Leading the job creation way was the textile and garment 
sector with eleven companies and 2700 employment opportunities created. Most of these companies come from Asia and manufacture high quality 
branded goods, which are exported to the USA, taking advantage of the quota free status enjoyed by South Africa. In the area of joint 
venture, there has also been a high level of success. CIMEC has also produced a useful database of all existing industries in the province. 
This is already proving very useful for both investor targeting, joint ventures and planning.

The Gambling and Betting Board awarded Casino Licences to applicants in Port Elizabeth and Bizana, whilst the successful bidders in East 
London and Queenstown could not meet the financial requirements and new applications for that license were invited. It is anticipated that 
the casino licensing process for Zones 2, 3 and 4, including the East London area, will be concluded by November 2000.

The management of Environmental Protection and Nature Conservation proceeded satisfactorily during the year, despite severe difficulties in 
terms of personnel and financial resources. In particular, the processing of statutory obligations, such as Environmental Impact 
Assessments, was accommodated with outstanding success, under the circumstances. A steady progress is also being made in addressing the 
management and operations of Game and Nature Reserves.

The Eastern Cape Tourism Board [ECTB] continued to market the Province as a tourist destination of first choice, and engaged in several 
national and international promotional ventures. The highly successful Tourism Indaba, held in November 1999, served to re-emphasise the 
enormous potential that is inherent in the tourism industry. A number of Task Teams, which were set up as a result of the Indaba, will 
finalise their development plans in the near future; particularly with respect to the organisation of a Tourism Industrial Cluster 
Initiative. During September 1999, the European Union approved a total of R75 million for Tourism-related Wild Coast SDI projects such as 
the development of tourism entrepreneurial skills, hospitality management, environmental awareness, project management and the development 
of a linkages programme within the tourism industry.

* Budget and Plans for 2000/2001

We initiated a joint planning process of the Department and all the parastatal organisation operating under it. The purpose of this 
exercise was to ensure greater alignment and proper co-ordination of activities and resources between the Department and our associate 
agencies. A co-operative model emerged out of this process in which the Department assumed the role of policy development and formulation 
as well as co-ordination as its core business, whilst implementation of sectoral activities was decentralised to parastatals. This process 
had implications for the organisational structure of the Department and therefore necessitated a comprehensive organisational and 
operational review.

The point of departure in this undertaking was:

* to ensure that the ECDC, CIMEC, ECGBB, ECTB, the Liquor Board and the Office of the Consumer Protector become effective delivery 
mechanisms;

* to determine ways in which we can work in close collaboration with the District Councils towards the realisation of an Integrated 
Development Planning and Implementation process; and with urban and rural local government institutions to establish and sustain Local 
Economic Development Initiatives.

* To establish multi-purpose Centres throughout the Regions that will service the people of the Province in terms of SMME Promotion, 
Investment Promotion, Tourism Development and Promotion, Environmental Management, Liquor Administration and Consumerism. Local and 
Regional private sector interests, non-Governmental and community-based organisations will also be brought on board on these issues.

The first step in this process of re-organising the Department has already been taken, and has resulted in a simplified programme structure 
divided into the following strategic focus areas (See also Annexure 1 attached hereto):

* Administration,
* Research, Policy Planning and Information Systems,
* Economic Development, and
* Environmental Affairs.

In this arrangement, Regional Directors become the co-ordinators of resources, drawing on a wide range of facilities and instruments; 
including the ECDC, CIMEC, the ECTB, organised business interests, labour and civil society interests; and, of course, Provincial and Local 
Government resources. We must begin to work more deliberately towards maximising the synergies of the resources at our disposal in order to 
ensure that we secure the best possible effects; rather than continuing to support fragmented and un-coordinated endeavours that result in 
unnecessary duplication and hence the wastage of both human and financial resources.

In order to meet the requirements of this new approach, the Departments allocation of the budget to each of these programmes is summarised 
as follows:

BUDGET SUMMARY   R 000
Amount Allocated: 2000/2001      127 476
Amount Voted: 1999/2000  131 705
Increase/(Decrease)      (4 229)
This represents an overall decrease of 3.2 percent between 1999/2000 and 2000/2001. Personnel Expenditure accounts for about 49.0 percent 
of the budget. This is perhaps as a result of the fact that some of our core areas are by nature labour intensive e.g. nature conversation; 
a factor that has been compounded by the problem of supernumeraries.

The proposed budget allocations according to the new Programme format are as follows:

PROGRAMME        R 000
1. Administration        17 038
2. Research, Policy Planning and Information Technology  2 702
3. Economic Development  50 175
4. Environmental Affairs         57 561
TOTAL    127 476
4.1 Programme 1: Administration

The objective of this programme is to provide efficient and effective administrative support to the key programmes of the Department. For 
the 2000/1 financial year this programme is expected to ensure optimal Financial and Personnel Management efficiency; together with the 
overall management of the Departments Human Resource Development Plan, the Service Delivery Plan, and the Integrated Implementation 
Programme. These functions will be based at Head Office, with appropriate delegations to the Regional Offices.

A principal objective of the Programme is to finalise all Revenue Collection procedures in order to ensure maximum recovery of revenue at 
all collection points throughout the Province.

The total budget for the Administration Programme is R 17 038 000.

4.2 Programme 2: Research, Policy Planning and Information Technology,

This is a new Programme, based at Head Office. The Programme is responsible for conducting, collating and/or managing appropriate research 
activities to ensure the availability of useful and up-to-date information, and to undertake necessary economic and environmental policy 
formulation for the Province. It is also responsible for managing the Departments Information Technology system, which includes 
participation in the Provincial GIS programme and the dissemination of information through the recently developed Intranet and Internet 
services.

The following projects have been identified for this financial year:

* Updating of the Provincial Growth and Development Strategy;
* Revision of the existing economic policy document and thus develop an overall, generic and facilitating economic policy for the Province. 
Whilst this would need extensive consultation with relevant interest groups before finalisation, it is imperative that the Department 
should produce a preliminary draft document that can be used as basis for subsequent consultation;
* Development of a small business development policy which will be in line with the Small Business Review. The recent national processes 
with regard to small, medium and micro-enterprises development necessitate the development of such a provincial policy;
* Extending from the work of the tourism cluster and the Tourism Indaba is the need to develop a Tourism policy;
* The promulgation of national policies on the environment also necessitate the development of provincial environmental policies;
* Formulation of a Manufacturing industrial policy where focus will be on those aspects of industrial development that should be 
specifically promoted in the provincial context, particularly in terms of priorities and preferences related to spatial, sectoral and/or 
population segment considerations;
* Undertaking a comprehensive review of the Provincial Economic base.

The total budget for this new programme is R2 702 000.

4.3 Programme 3: Economic Development

Economic Development is a key business area for the Department and deals with six principal activity strands:

* Small Business Development [the SMME sector],
* Tourism Promotion and Development,
* Industrial Development,
* Consumer Affairs,
* Gambling and Betting, and
* Liquor Administration.

In each of these instances, the Head Office Deputy Permanent Secretary: Economic Development deals directly with the ECDC, CIMEC, ECGBB, 
Liquor Board, Office of the Consumer Protector and ECTB in the formulation of programme and project-specific activities that combine the 
human and financial resources of the Parastatals with those of multi-purpose centers to establish Joint Project Teams to undertake specific 
tasks.

* Small, Medium and Micro-enterprise Development

Preliminary actions, in this regard, include the formation of a Small Business Development Unit [SBDU], which is located in the ECDC and 
draws on the personnel and other resources of the Departments Regional Offices to investigate projects, develop project proposals, 
evaluate loan applications from SMMEs, and to ensure that an appropriate after-care process is established, through Local Business Service 
Centres, Manufacturing Advisory Centres and other service providers, to ensure that client entrepreneurs are adequately serviced with 
advice and guidance.

The targets of this programme for the 2000/1 financial year are:

* To establish two new Manufacturing Advisory Centres in Umtata and Kokstad, respectively, whilst continuing the support of the existing 
Manufacturing Advisory Centres in Port Elizabeth and Queenstown.
* Provision of loan finance to at least 1 200 loanees.
* Supporting 50 Local Economic Development Projects that impact on SMME development.
* Beefing-up the administrative systems of specific Chambers, thus improving the servicing of their members.
* Supporting programmes of Chambers of Commerce with a special emphasis on tendering, capacity-building of SMMEs, networking and after-care 
service for SMMEs.
* Facilitating an SMME Indaba, which will outline SMME opportunities in government and the private sector, and also identifying those 
strategic issues that have to be addressed to promote SMME development.
* Efficient and effective administration of liquor affairs.
* Regionalisation of liquor administration.

In order to achieve these targets an amount of R11 909 000 has been set aside for the financing of SMMEs, R2 628 000 for local economic 
development projects and R3 500 000 to support the SDI/IDZs.

TOTAL BUDGET (2000/1): R 21 936 000
 TOTAL BUDGET (1999/2000): R 16 897 000

The SMME and Liquor Administration budget has increased by an amount of R6 000 000 from the previous financial year.

It is important that we dispel the myth that SMME support and development is the responsibility of government alone. We would want to 
emphasise here that there are a number of other players in the arena of SMME development and support. These include Commercial Banks, 
Parastatals, Big Business and a host of SMME support agencies. Apart from providing finance, we see our role as government, as a catalytic 
one: stimulating activity, support, sustaining and nurturing the activities in the SMME sector and more importantly facilitating 
collaboration and synergy amongst the various players in the SMME sector. This explains why we are currently involved in a process of 
pulling together all players in this sector into a forum to promote collaboration, plan joint action and identify priorities for the coming 
period.

b. Investment, Marketing and Industrial Promotion

Mr Speaker, an amount of R 6 788 000 has been allocated to the Centre for Investment and Marketing in the Eastern Cape, to play the 
following important role:

* facilitating the inflow of development investment in the province, and
* marketing the Eastern Cape Province to attract investors.

    In this financial year, CIMEC plans to:

* Continue to promote vigorously the quota free status of South Africa for export to the USA (there are sill nine years left under Africa 
Growth and Opportunities Act (USA));
* Achieve a total of 24 completions with total investment of R400 million and 3750 jobs target;
* With the new road being built at the Kei Cuttings, a greater focus on Butterworth will be opened and the potential use of the industrial 
area;
* Continue to act as a service provider for Johannesburg Stock Exchange EEZ Program (Emerging Enterprise Zone) and further aims to 
introduce at least three fund seekers or providers for this matching exercise programme;
* Complete a prospectus for a mariculture project in Transkei so as to be able to use this document to unlock land tenure issues and permit 
requirements, to positively get investors for the project;
* Attain break-even and profitability for the Q-Mec Ornamental Fish project;
* Completion of the Amalinda Nature Reserve Community Project;
* A fully-fledged Business Support Programme with emphasis on trade promotion.

TOTAL BUDGET (2000/01):  R 9 139 000
TOTAL BUDGET (1999/2000):        R 10 075 000

A decrease of R 936 000 from the previous financial year.

c. Consumerism

The Consumer Affairs section is also managed by this Programme and operates through the Office of the Consumer Protector, which is located 
at Head Office.

The targets of this section for the coming year are the following:

* Consumer Education programmes throughout the Province;
* Conducting Trade Inspection on a regular basis;
* Establish a Consumer Tribunal;
* Establish a hot-line for consumer complaints throughout the Regions.

TOTAL BUDGET (2000/01):  R 2 100 000
TOTAL BUDGET (1999/2000):        R 5 081 000

A decrease of almost R3 000 000 from the previous year, due to the utilisation of departmental staff for the filling of posts that were 
initially budgeted for this section.

d. Gambling and Betting

As indicated earlier, the process for allocation is on track with the licenses for Zone 2,3 and 4 to be completed by 30 November 2000. The 
following will be the focus of the department through the Gambling and Betting Board in the next financial year:

* Route and Site Licenses: Regulations governing Route and Site operations are soon to be issued by the National Department. This will 
enable to take action on this important matter.
* Bingo: Viability of Bingo operations is currently being investigated and as soon as the Board finalises the matter, it will advise the 
department accordingly. The target for this activity is August 2000.
* Manufacturers Applications: To-date the Board has received 14 manufacturers applications for registration. A decision will be made before 
the end of April 2000.
* Horse Racing: Phumelele Gaming and Leisure (Pty) Ltd is applying to acquire 100% of licensee East Cape Racing (Pty) Ltd, which holds the 
race course licenses on two race tracks in Port Elizabeth and a totalisator license. They have also applied to manage the totalisator 
operation of East Cape Racing (Pty) Ltd. These applications will be finalised before the end of April 2000.

The total budget for the Gambling Board is R8 000 000.

e. Tourism Promotion

Mr Speaker, the recent Tourism Indaba once again exposed the importance of this activity in the Province. An amount of R9 000 000 has been 
allocated to the Eastern Cape Tourism Board whose activities will include the following:

* Promotion of the Province through domestic and international trade shows and aggressive advertising campaigns;
* Ensure that travel agents, tour operators and other stakeholders have timely access to marketing information;
* Produce quarterly reports on the state of tourism in the Province;
* Establishment of the Tourism Cluster;
* Provision of development advice to the European Union project in the Wild Coast SDI and the Greater Addo Park Initiative;
* Production of a tourism development strategy including quality products;
* Co-ordination of a provincial tourism safety strategy;
* Facilitate the involvement of the tourism industry in the Sector Education and Training Authority (SETA);
* Undertake a feasibility study on the viability of a tourism school in the Province;
* Development of a marketing strategy for the Provincial game reserves;

* Facilitate the Tourism Safety Task Group.

TOTAL BUDGET (2000/1)    : R17 000 000
TOTAL BUDGET (1999/2000)         : R16 156 000
An increase of R846 000 from the previous financial year.

The total Economic Affairs Budget for the 2000/01 financial year is R 50 175 000, which represents an increase of R 1 966 000 from the 
previous financial year.

4.4 Programme 4: Environmental Affairs

The objective of the Environmental Affairs Programme is to ensure the conservation of bio-diversity and the protection of the environment 
through the ecologically sustainable, economically efficient and socially equitable use of the environment in the Eastern Cape.

The key targets for this programme for the 2000/1 financial year are:

* Harmonisation of environmental legislation in the Province, in order to table a draft Bill during the current session;
* Development of Management and Business Plans for Nature Reserves;
* Ensure that all stakeholders comply with the legislation through CITES administration, anti-poaching operations, and a uniform permit 
administration system;
* Establishment of an Environmental Education Centre in Umtata;
* Participation in strategic environmental initiatives, such as the Cape Action Plan for the environment, the Maluti-Drakensberg 
Transfrontier park, and the World Congress on Protected Areas Planning Committee;
* Implementation of Agenda 21 throughout the Province;
* Undertake infrastructural development in the nature reserves;
* Fostering an efficient and effective environmental impact management programme so as to impact positively on economic growth and 
development;
* Encourage community participation within and without Nature Reserves.

A principal policy change that is anticipated concerns the establishment of an Eastern Cape Parks Authority to ensure the efficient and 
effective management of Protected Areas. The Chief Directorate will also be re-structured to promote integration and co-operation between 
Nature Conservation and Environmental Protection, particularly with respect to Environmental Impact Assessments and Environmental Education 
responsibilities.

The total budget that is allocated to nature conservation and environmental protection is R57 561 000. This is a decrease of R7 million 
from the previous financial year. However, I would like to inform the House that an additional amount of R10 million has been voted on top 
of the R57 561 000, for infrastructural development in the nature reserves of the Province.

Mr Speaker, Inter-Departmental co-operation and integrated planning are the watchwords for service delivery in this revised structure. This 
will be pursued with vigour within the Department and we look forward to interaction with other Provincial Government Departments and other 
spheres of Government, particularly through the Cabinet Committee on Economic Growth and Development. When the final outcomes of the 
Demarcation Board for the Province are made known, we will establish and cement relationships with District Councils and Local Government 
structures in the pursuit of Local Economic Development and service delivery.

* CONCLUSION

Comrade Speaker, the detailed exposition I have presented above, is surely a record of progress, determination and clarity of vision. All 
of which is underpinned by concrete plans and targets for the 2000/2001 financial year. We have no doubt in our minds, that the challenges 
ahead of us are both complex and immense. As a department, we have, through our planning process, our analysis of the provincial 
comparative and competitive advantages and the possible networks that we can be able to create for delivery, made sure that this financial 
year is once more a successful year.

Our programmes continue to be underpinned by an unwavering belief that development and economic growth is a multi-faceted endeavour that 
requires a broad partnership of all social forces that constitute the population of this province. Consequently, we will be putting a lot 
of effort and resources to ensure that through our actions, we are able, not only to trigger actions from other sections of society (be it 
business, SMMEs, entrepreneurs etc.) but also to generate solid partnerships with key sectors of society. This partnership is already 
emerging in our discussions with major industrial players in the province, our investment promotion agencies and the department as well as 
national government. What we hope to do, is to generate a network that has the full potential of creating the jobs that our province surely 
needs.

Of significance, is also the fact that we will make a particular effort to ensure delivery in all our major programmes, in particular, the 
Spatial Development Initiatives, both the Wild Coast and the East London and Coega IDZ. A solid foundation has already been laid in all 
these initiatives but our challenge for this coming year is to ensure that the projected jobs and investments are realised. In this regard, 
Mr. Speaker allow me to single out the Coega Project, precisely because we believe that its implementation will be amongst the key factors 
that will turn the economy of this Province around. I must be upfront in admitting that there has been major delays in the implementation 
of the project. It is not my intention to lament about some of the constraints we had to confront in driving the process forward, but I 
would want to assert in this House, that the concrete implementation of this project will begin in this financial year. The experience over 
the last few years has helped us set a solid basis for the implementation process and we are currently involved in a process of finalising 
the extent of private participation in the project. This, we hope to complete before the end of this month and an appropriate announcement 
will be made in the middle of April 2000. Throughout this process, we have ensured close interaction and co-ordination with the potential 
investors and anchor tenants. Whilst it is clear that as government we cannot create jobs, it is our duty to ensure that we create a 
context in which jobs can be created and in the overall our interventions are about putting in place not only correct economic fundamentals 
but also appropriate processes that can ensure that jobs are created within our economy.

Once more, let me thank the Premier of the Province, for the continued support and leadership that he has provided us as a department. I 
would also like to thank the members of the Standing Committee for their watchful and critical eye over the activities of the department. I 
must say that your guidance has been very important in all our activities.

Let me also thank the staff members of my department, the parastatals and members of the various Boards. Without all of you, our task could 
not have been easy.



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ANNEXURE 1

OVERALL STRUCTURE OF THE DEPARTMENT OF ECONOMIC AFFAIRS, ENVIRONMENT AND TOURISM



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ANNEXURE 2

ORGANISATIONAL ALIGNMENT BETWEEN THE ECDC AND THE REGIONAL OFFICES





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ANNEXURE 3

ORGANISATIONAL ALIGNMENT BETWEEN CIMEC AND THE REGIONAL OFFICES



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