The Housing Minister, Sankie Mthembi-Mahanyele, presented a briefing on behalf of the Social Cluster.
This is a synopsis report of the responses of the Ministers to questions posed by the Media.
Questions and Answers:
(Q) To what extent is poor quality construction a problem in the Starter homes?
(A) Minister Mthembi-Mahanyele: In some projects, we were not happy. We found that there were many reasons for the problems. First, the geo-technical conditions were not good, such as poor soil conditions. Second, developers underused materials to increase their profit margins. Third, the developers did not adequately supervise the building of the homes. This was very evident in the Harmony Point Project in Mpumalanga. As a result, the developers have returned to the area to fix the mistakes at their own cost. Fourth, developers took the Government for granted, but we are checking to make sure the houses meet standards. We are still conducting our national audit, but so far the extent of the problem is minimal.
(Q) What is being done as far as land programs to reverse apartheid borders?
(A) Minister Mthembi-Mahanyele: As far as land programs go, we have a speedy release program so that land can be developed. Our aim is to develop closer to areas of economic activity, and to increase people’s access to social services. We are working very hard on urban renewal to change the patterns that we have inherited. In the next 5 years, there will be many projects maturing. We have not moved at the pace that we wanted but this is for a number of reasons. First, land is very expensive and as there is only a limited amount of land available, it becomes increasingly expensive. Second, local authorities hold power to disperse land, and they often only release it for specific purposes which are not in our favor. We are determined to have mixed-incomes and mixed-races living together in the city.
(Q) What is the number of people moving from rural to urban areas?
(A) Minister Mthembi-Mahanyele: We are addressing this issue at a national level, but there are no specific numbers. We do know that in Gautang, 20,000 people move in there every month. This is why the Departments are taking an integrated approach to development.
(Q) What calculations do you use for the water-pricing policy?
(A) Minister Kasrils: There is no answer on the issue of water pricing policy, but
we are very concerned about it. We realize that farming people cannot pay for water. We have found that where meters for water are used, consumption is reduced drastically. In many areas, people are digging to find water, because they cannot afford the 10 rands per month it costs for running water. We are conducting a full study of the effects of changing the infrastructure of water provision.
(Q) What is the rational for leniency towards emerging farmers?
(A) Minister Kasrils: Our approach is to encourage emerging farmers. We are providing water to them at a very low cost. The problem is that a lot of capital is required to build the infrastructure for irrigation systems. We have been trying to create partnerships with wealthy farmers in the Blyde River area. In the Lower Fish River, the cost to extend irrigation to the 300 emerging farmers is R75 million. We need to weigh these problems in terms of our budget restraints.
(Q) What is in the audit as far as sustainability and future implications?
(A) Minister Kasrils: For the 1998-99 year, we had R1 billion to devote to water projects. Our goal was to rapidly advance water to the 12 million people in rural areas. We thought that money would let us bring water to 1 million people a year, however our calculations failed to include the costs of management, maintenance, and sustainability. The figure of 1 billion started shrinking because almost one-third went to sustaining the existing systems. The result is that we now have less money to help the 8 million people that still have non potable water.
(Q) What is the extent of poor housing a public misconception?
(A) Minister Mthembi-Mahanyele: Many people have complained that the houses are too small or of not good quality. I think the people in these starter houses do not understand our achievements. Their perceptions of what they were getting were not appropriate. We admit that this is in part our fault for not being more specific about the houses at the beginning. It is a public misconception, for instance of the 920,000 units we produced, only the 70 in Harmony Point had problems. We also started the People’s Housing Initiative where we expect householders to upgrade these homes.
(Q) How much are people paying for starter homes?
(A) Minister Mthembi-Mahanyele: The price depends on the size of the house. For two bedroom houses, the price is R340-R400 per month, and for three bedroom houses, the price is R800-R850 per month. We will be developing a rental policy this year. Some houses will be rental units, while others will be available to buy. We are aiming for 25% of the homes to be bought, and 75% to be rented. We will develop a formula to determine the cost of the units, but it will depend on the amount of collateral that the people have.
(Q) Are you looking for private partnerships for water pricing? and what is the progress of the Heath Commission?
(A) Minister Kasrils: On the Heath Commission, we are pursuing complaints made by the public, and we are looking for the best instrument to deal with this issue. We will be getting advice from the President. We are encouraging private and public partnerships, and there are many discussions happening at local and municipal levels. We will be bringing out regulations on the Water Act of 1945 within the next six weeks for public comment, as we know businesses will not get involved until the regulations are very clear. Currently, there are foreign partnerships, such as in Mpumalanga where the water purification systems are funded by a Portuguese company.
(Q) What is the role of Oogavogo in relation to the general public and land-owners?
(A) Minister Kasrils: We are taking a very people oriented approach, and are confident that the project should create over 2000 jobs. The jobs will go to long-time residents of the area, and not to people that have just moved in. There is a massive role for people in volunteer fire fighting. We feel the time is right to recruit for volunteers. We are also looking for land-owners to contribute R10 million to the war chest. SANTUM has already donated R20 million. It should be made clear that this is a pilot project in the peninsula, and we hope to expand it to other areas.
(Q) Can you explain RDP?
(A) Minister Kasrils: RDP will work to provide people with water no more than 200 meters from where they live, and give them 25 litres of free water. In 1994, 2,63 million people were served to the RDP level, which is not completely satisfying. In addition, 1,65 million people were served by El-Nino and other projects, and 600,000 people were benefited in the Arabie area where water has arrived in a bulk supply. As a result, 4,86 million have been served, but not all to RDP standard. Finally, the 12 million will be changing to 15 million due to population growth.
(Q) What is the state of Nelsprit?
(A) Minister Kasrils: Nelsprit is all but signed. There are just a few points that need clarification such as guarantees, the labour force, and the pricing factor. We must make sure that consumers do not get overcharged. Constantia consumes more water per person than any other area, and if they are using water for luxuries such as swimming pools, then they must be charged luxury prices.