We are on the brink of a new beginning with a chance to build on our previous successes and begin to launch shelter provision in a much more integrated manner. The last term of office was characterised by the following:

• establishment of housing delivery systems,

• setting up procedures for the processing of applications;

• establishing the institutional framework for housing delivery;

• stabilising the housing environment and;

• mobilising credit and providing housing subsidy assistance.

We laid a solid foundation having moved from acute shortage of homes, the proliferation of informal settlements to a position where we can safely say that we have made gains by laying a framework that has gone a long way towards ironing out the creases around the aquisition of homes for the poor. Our priorities for the next five years are as follows:

• The establishment of housing five year plans at National, Provincial and Local government level;

• Rental policy and programme;

• Second White Paper to guide housing into the new millenium;

• Enhancement of the housing subsidy progress payment;

• Broadening access to housing subsidies

• Measures to prevent subsidy fraud;

• Improvement of subsidy administrative system;

• Phasing out of previous dispensation subsidies

This therefore, means that the next term will see greater focus on ensuring improved quality of housing built, both in terms of the housing constructed and the built environment created in new residential areas. This will be in line with the principles of integrated and co-ordinated development to ensure maximum private and public sector investment in well located land next to areas of social and economic activities.

We will continue to look for alternative methods of garnering financial support to augment the subsidy grant. To this end innovative and more creative ways of amassing savings in communities will be investigated with a view of applying these models to top up the grant. The current term of office will embark on mobilising savings including stokvels for housing development purposes and the use of subsidies as structured support and incentives to match savings and therefore increase the total amount available for house construction.

Various models will be established including combinations of the following:

• Savings and rental subsidy for rental payments;

• Group savings e.g. stokvels and revolving fund grant and housing subsidy;

• Savings and ownership subsidy

The main being to ensure that households including individuals take part in housing aquisition. It is important to dispel the notion that government provides everything. While we do acknowledge that support is necessary as a means of intervention and helping out those who do not have the means, this is merely an outstretched helping hand to make sure that the quality of life of our people is improved.

Housing finance interventions are a necessity to protect the poor from the harsh economic realities of fluctuating inflation and interest rates. For this reason, the current phase will see the growth of alternative housing finance products including micro loans that are cheaper than conventional mortgage bond for low income earners to enhance their housing units and provide protection against interest rate increases.

For the next five years we will ensure that:

• The backlog is significantly reduced

• Alleviate poverty and improve the quality of life by providing access to basic services and shelter within the means of the available resources;

• lncrease the proportion of rental stock and provide tenure diversification

• Upgrading of existing informal settlements, where appropriate replacing shacks with houses and providing services;

• Adopting a differentiated approach to meet the specific needs of the poor including tenure requirements, migratory patterns, household size and affordability levels;

In addition, we will focus on rural development. Specifically adopting a shift in emphasis to rural development in all our programmes by adopting a rural strategy which will foster co-ordination of all rural infrastructure development programmes. This will include a clear definition of rural settlements and set standards appropriate to type of settlement to guide infrastructure development and ensure affordability. It will also focus on economic development, job creation and capacity building.

Because we recognise that government alone cannot carry the task of reconstructing and developing our country alone, we intend to foster and promote public private partnerships by involving the private sector. Government is establishing suitable instruments for infrastructure development collaboration, coordination of public sector programmes and policy enhancement to accommodate changing circumstances in both the public and the private sector.

We intend to promote a healthy and competitive industry which delivers value for money in line with international best practice and promote the participation and growth of emerging small and micro enterprises.

While the central strategic thrust of growth and development of infrastructure programmes contains the key to sustainable employment and human resource development, this thrust can only yield results over a sustained period.

However, key to sustainability and affordability of infrastructure development programmes is economic development with emphasis on employment creation, capacity building and training. Support programmes for small business development as an integral part of the infrastructure development programme to sustain employment and enhance affordability levels. The public sector will aim to maximise employment opportunities through labour intensive construction and empower communities through training.

We will formulate short and medium plans for infrastructure development which examine different options including spatial development of the area to integrate economic, social infrastructure and local resources.

More successful implementation has been and will be witnessed where coordinated and integrated development lie at the core of all the programmes such as Presidential Projects on Urban Renewal, the National Pilot Project on Housing tabled at the Job Summit last year and the Consolidated Municipal Infrastructure Programme.

The Department of Transport in conjunction with Local Government have identified and planned a number of urban corridors where higher residential densities, coordinated infrastructure and mixed land use will support investment in public transport infrastructure. The development of the corridors will link peripheral settlements to areas of economic opportunity and integrate cities. The following are examples of this initiative:

• Wetton/Lansdowne Road (Cape Town)

The co-ordination of infrastructure will include co-ordination of development policies, strategy and implementation approach supported by targeted allocation of funds and mutually complementing projects to avoid duplication and enhance service delivery.