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                         State of the Nation Address of the President 
                          of South Africa at the opening of Parliament, 2001, 
                          Cape Town, 9 February 2001 
                         
                        Madame Speaker and Deputy Speaker, 
                          Deputy President, Jacob Zuma, 
                          Chairperson and Deputy Chairperson of the NCOP, 
                          Honourable Members of our National Parliament, 
                          Ministers and Deputy Ministers, 
                          President of the Constitutional Court, 
                          The Acting Chief Justice and other members of our judiciary, 
                          Heads of the Security Services, 
                          Governor of the Reserve Bank, 
                          Honourable Premiers and MECs, 
                          Traditional leaders, 
                          Representatives of Local Government, 
                          Your Excellencies Ambassadors and High Commissioners, 
                          Distinguished guests, 
                          Fellow South Africans:  
                        Gradually, step by step, our country proceeds further 
                          away from its painful past. We, its citizens, who are 
                          very close to the coal face of change may not easily 
                          see the steady transformation that informs all aspects 
                          of our national life.  
                        The past of which I speak is well known to all of us. 
                         
                        It is a past of a racially divided country, of masters 
                          and servants, of racially inspired conflict and mistrust. 
                         
                        It is a past of endemic and widespread poverty and 
                          gross imbalances in levels of development and the distribution 
                          of wealth, income and opportunity. It is a past of an 
                          economy that was immersed in a crisis that was destined 
                          to worsen.  
                        It is a past of the denial of freedom to the majority, 
                          gross violation of human rights and repression, of entrenched 
                          sexism, a past of high levels of crime, violence and 
                          corruption.  
                        It is a past of a South Africa isolated from the rest 
                          of Africa and the world, a pariah among the nations. 
                         
                        It is away from this painful past that our country 
                          is progressing and must progress.  
                        Our first responsibility in this regard has been the 
                          need for us to recognise the reality that as a people 
                          we do indeed share this common legacy.  
                        Secondly, we had to make the determination that this 
                          was a legacy that we did not desire and were therefore 
                          committed to eradicate.  
                        I would like to take this opportunity to pay tribute 
                          to all our people, both black and white, who, in the 
                          past year and before, made a contribution, however small, 
                          towards the new advances of our country further away 
                          from its painful past.  
                        In my own contacts with our people I meet the constant 
                          refrain  what can I do to help build a better 
                          South Africa!  
                        These ordinary but truly heroic South Africans are 
                          not daunted by the difficulties they know we confront. 
                          They are not discouraged or overwhelmed by the litany 
                          of negative messages about our country to which all 
                          of us are exposed daily.  
                        They see no benefit for themselves or our country in 
                          highlighting the deficiencies of our society and minimising 
                          the achievements we have scored collectively.  
                        Indeed the difficulties that our country faces serve 
                          as an imperative to these fellow South Africans to persist 
                          along their chosen path of working even harder to build 
                          a new society.  
                        It is thanks to their common efforts that we can make 
                          bold to say that we have continued to move forward away 
                          from our painful past. To build on these constructive 
                          efforts, we call on all our people across the colour 
                          line to dedicate this year to building unity in action 
                          for change.  
                        Such unity in action among all South Africans should 
                          include joint efforts to implement the decisions taken 
                          at the National Conference on Racism. I wish once more 
                          to pledge that the Government will discharge its own 
                          responsibilities in this regard to assist our country 
                          to move away from its painful past of racism and sexism. 
                          Furthermore, we would like to reiterate our thanks to 
                          the Human Rights Commission for the holding of this 
                          successful conference.  
                        We call on all our people individually and collectively 
                          to join in this campaign themselves to become activists 
                          in the historic process to transform ours into a truly 
                          non-racial country.  
                        In this regard, I would like to congratulate Carl Niehaus, 
                          Mary Burton, Antjie Krog and others for their initiative 
                          to contribute to the socio- economic upliftment of their 
                          black fellow South Africans. There are others in our 
                          society who have also provided the lead and therefore 
                          also deserve a sincere word of appreciation.  
                        These include Afrikaner farmers and professionals and 
                          historically white schools who have voluntarily decided 
                          to devote time and resources to the development of the 
                          disadvantaged sections of our population.  
                        All of us are aware that later this year, we will be 
                          hosting the critically important UN Conference on Racism, 
                          Racial Discrimination, Xenophobia and Related Intolerance. 
                         
                        The peoples of the world are approaching this Conference 
                          with the greatest seriousness and expect that it will 
                          result in important new initiatives in the global struggle 
                          to combat racism. As the host country and given our 
                          own experience of racism, we are expected to make a 
                          significant contribution to the success of the Conference. 
                         
                        We will therefore have to take the necessary steps 
                          further to develop a national consensus on this matter 
                          and to demonstrate to the whole world the practical 
                          resolve of all our people to push back the frontiers 
                          of racism and xenophobia in our own country.  
                        During the past year, we also took important steps 
                          towards the further consolidation of our non-racial 
                          democracy. I refer in this instance to the demarcation 
                          process, the establishment of the new municipalities 
                          and the holding of the municipal elections.  
                        Through these processes, we have deracialised and strengthened 
                          local government as well as ensured the legitimacy of 
                          the new municipal councils, due to the fact that the 
                          elections were free and fair.  
                        All this puts the country as a whole in a strong position 
                          to make further advances in increasing the capacity 
                          of the people to participate in the process of determining 
                          their future.  
                        The requirements on the municipal councils to elaborate 
                          and adopt integrated development plans and to establish 
                          ward committees to facilitate regular communication 
                          between the councillors and the people are important 
                          instruments towards the realisation of the objective 
                          that the people shall govern.  
                        More work remains to be done to ensure the effective 
                          functioning of our new municipal councils. This will 
                          include the creation of effective management and administrative 
                          machineries in every municipality, the proper integration 
                          of the formerly different areas and the implementation 
                          of development programmes, including those focused on 
                          poverty alleviation.  
                        There are other outstanding matters such as the proper 
                          definition of the role of traditional authorities, the 
                          remuneration of the councillors and ironing out problems 
                          affecting the cross-border municipalities. All these 
                          are receiving urgent attention.  
                        Recognising the fact that we still have this outstanding 
                          work, nevertheless we would like to congratulate the 
                          Demarcation Board, the Independent Electoral Commission, 
                          the various organs of government, the political parties, 
                          the traditional leaders and our people as a whole, for 
                          combining their efforts to bring about the excellent 
                          progress we have made further to entrench our democratic 
                          system and enhance the capacity of government to contribute 
                          to the realisation of the goal of a better life for 
                          all.  
                        These important successes demonstrate practically what 
                          we can achieve if indeed, as a country and a people, 
                          we unite in action for change.  
                        During the past year, we also made new advances in 
                          what must continue as a sustained offensive against 
                          poverty and underdevelopment.  
                        By December 2000, the cumulative total for houses completed 
                          or under construction was 1,129,612 while subsidies 
                          allocated amounted to 1,323,205. During the year 2000 
                          397,019 electricity grid connections to homes were made. 
                         
                        The cumulative figure for the supply of clean water 
                          provided through the Community Supply Programme has 
                          increased a hundred fold from 62,249 in 1995 to 6,495,205 
                          by November 2000.  
                        412,000 new telephone lines were installed in the financial 
                          year 1999 to 2000 and 127 clinics built in the year 
                          2000.  
                        In the period from 1994 to November 2000, 917,220 hectares 
                          of land was handed over to new black land owners through 
                          the governments redistribution and restitution 
                          processes. 37,396 households benefited from the land 
                          redistribution process.  
                        Statistics South Africa also reported that, according 
                          to its October Household Survey released in July 2000, 
                          during the period 1996 to 1999, total employment increased 
                          from 9.3 million to 10.4 million, representing a net 
                          gain of 1.1 million jobs.  
                        It is also interesting to note that the Bureau of Market 
                          Research of UNISA reports in its categorisations that 
                          between 1995 and 2000, real personal disposable income 
                          of Indians increased annually by 2.8 per cent, the figure 
                          being 2.7 per cent for Africans, 2.1 per cent for Coloureds 
                          and 1.1 per cent for whites.  
                        Despite all these advances we are still faced with 
                          a daunting backlog of poverty and maldistribution of 
                          income and wealth as recently reported by the UNISA 
                          Bureau for Market Research.  
                        Reflecting the persistence of poverty among the Africans 
                          as well as disparities even at the high income levels, 
                          the BMR reports that more than 84 per cent of the low 
                          income accrued to Africans. 71.9 per cent of income 
                          earned by the high income group went to whites and 22 
                          per cent to Africans.  
                        We must also continue to be concerned about the slow 
                          progress being made with regard to the important issue 
                          of achieving gender equality. Further disaggregation 
                          of the economic figures we have quoted would show that 
                          the most disadvantaged in our country are black women. 
                         
                        The government itself has failed to achieve the necessary 
                          progress on gender equity even in the area of employment. 
                         
                        The National Gender Audit carried out by the Office 
                          on the Status of Women shows that in September 2000, 
                          women constituted only 16 per cent of the complement 
                          of senior managers in government, despite the target 
                          set by the Department of Public Service and Administration 
                          of 30 per cent.  
                        On a more positive note, however, the figure for Gauteng 
                          Province was 37 per cent in 11 departments and 28 per 
                          cent in six departments in the Northern Cape.  
                        During the past year the economy also continued to 
                          improve in an impressive manner. A strong base has been 
                          created for an even better performance this year.  
                        The December 2000 Quarterly Bulletin of the South African 
                          Reserve Bank reported that:  
                        "The South African economy gathered considerable 
                          momentum in the third quarter of 2000. The strong growth 
                          in the second half of 1999
was largely restored 
                          in the third quarter. Stronger growth in manufacturing 
                          production resumed and real income in the agricultural 
                          sector rose vigorously
Growth in real gross domestic 
                          product approached 4 per cent in the third quarter of 
                          2000
considerably firmer than the average annualised 
                          growth 
in the first half of 2000
 
                        "The national accounts showed continued growth 
                          in real final household spending in the third quarter
 
                        "A favourable external environment, continued 
                          growth in domestic final spending, rising profitability 
                          and the availability of investable funds provided the 
                          incentives for the business sector to raise its capital 
                          expenditure further in the third quarter
 
                        "The surplus of the financial account of the balance 
                          of payments exceeded by a considerable margin the absolute 
                          value of the deficit on the current account, raising 
                          the countrys international reserve holdings to 
                          their highest level ever." 
                        The Bulletin goes on to note other positive developments 
                          such as:  
                          
                        the "expansion of (electricity
and water) 
                          services to the rural areas of the country";  
                          "the (further) development of housing infrastructure" 
                          "higher real household income and the reduced personal 
                          tax burden";  
                          "the ongoing buoyancy of the telecommunications 
                          subsector where the expansion in the cellular network 
                          and Internet activity continued, along with the expansion 
                          of telephone services to previously under-serviced areas"; 
                           
                          "developments (in real final consumption expenditure 
                          by general government)
consistent with governments 
                          resolve to rein in government spending as part of a 
                          broader strategy that will create an environment conducive 
                          to enhanced economic growth and job creation"; 
                           
                          "public corporations increased their capital spending 
                          as part of modernising strategies ahead of the expected 
                          increase in private-sector participation in these businesses
General 
                          government increased its capital outlays somewhat, mainly 
                          in the form of higher spending on roads infrastructure"; 
                           
                          "Gross saving by general government, which turned 
                          from dissaving to positive saving for the first time 
                          in almost a decade in the second quarter of 2000, remained 
                          positive in the third quarter";  
                          and, "an acceleration in the growth in real output 
                          per worker in the formal non-agricultural sectors from 
                          a year-on-year rate of 2,4 per cent in the first quarter 
                          of 1999 to 6,5 per cent in the first and second quarters 
                          of 2000.  
                          The foreign trade surplus as at December 2000 was a 
                          record R9 billion.  
                        The consumer inflation rate was 5.3 per cent in the 
                          year 2000, compared to 15.3 per cent in 1991.  
                        Reflecting the truth of real increased business confidence, 
                          Nedcors register of capital projects of more than 
                          R20 million showed an increase from R22 billion in 1999 
                          to R48 billion last year.  
                        Furthermore, the current decline in yields on government 
                          bonds to record lows, while the share market is approaching 
                          its record highs, show that the financial markets have 
                          confidence in the governments fiscal policy, the 
                          monetary policy of the Reserve Bank and the ability 
                          of South African business and our citizens to deliver 
                          a better life for all.  
                        Our country jumped 14 places in the World Economic 
                          Forums Global Competitiveness Report 2000, rising 
                          from 47 out of 49 countries surveyed in 1999 to 33 out 
                          of 59 in last years report.  
                        The overall situation on our Continent also continued 
                          to improve, marked by such important events as the elections 
                          in Ghana and the smooth hand over of power by the defeated 
                          former ruling party, and the signing of the ceasefire 
                          and peace agreement by Ethiopia and Eritrea.  
                        Despite the difficult problems facing these two countries, 
                          steady progress is being made towards the resolution 
                          of the conflicts in Burundi and the Democratic Republic 
                          of Congo.  
                        As South Africans we should be proud to note that the 
                          past year has seen our country enhance its role as a 
                          reliable partner in the African and global struggle 
                          for democracy, peace, development and an equitable process 
                          of globalisation.  
                        Quite clearly, a better global setting will help us 
                          greatly as we pursue the national effort to secure a 
                          better life for all our people, which, in turn will 
                          give us better opportunities to discharge our own international 
                          responsibilities. A better Africa and a better world 
                          are in the genuine interest of South Africas people. 
                         
                        In further pursuit of the objective of a better life 
                          for all and building on what has already been achieved, 
                          the government has decided on a programme of action 
                          for the year 2001.  
                        I will now outline the principal elements of this programme 
                          of action, starting with the economy.  
                        As part of the process of planning for the future, 
                          towards the end of last year we had occasion to draw 
                          on the advice of some of the worlds top economists 
                          and analysts from a wide range of schools of thought. 
                         
                        There is a general consensus that we have established 
                          the necessary macro- economic balance and stability, 
                          away from the very precarious position we were in, in 
                          1994, and despite a very volatile international environment. 
                         
                        Furthermore, the international competitiveness of the 
                          economy has fundamentally improved. The threat of de-industrialisation 
                          and economic collapse as a result of manufacturing sector 
                          inefficiency which we inherited, has been addressed 
                          through tariff and industrial reforms.  
                        However the reality remains that our rate of growth 
                          is still too low as are the aggregate savings and investment 
                          rates. Similarly, the levels of poverty, unemployment 
                          and underdevelopment in some parts of our country are 
                          too high.  
                        While continuing to focus on the maintenance of the 
                          correct macro-economic balances, we have therefore decided 
                          to pay detailed attention to the critical micro-economic 
                          issues.  
                        In particular we have decided that this year the government 
                          itself, in all its spheres, and the public sector as 
                          a whole, must make a decisive and integrated contribution 
                          towards meeting the economic challenges the country 
                          faces.  
                        The objectives we seek to achieve are moving the economy 
                          onto a high-growth path, increasing its competitiveness 
                          and efficiency, raising employment levels and reducing 
                          poverty and persistent inequalities.  
                        To improve our competitiveness, we must lower input 
                          costs throughout the economy.  
                        Accordingly, we have decided to go over to a managed 
                          liberalisation of the energy, transport and telecommunications 
                          sectors.  
                        With regard to all these sectors, all outstanding policy 
                          matters, including the regulatory frameworks, will be 
                          addressed leading to the creation of the necessary climate 
                          of certainty for both public and private sector investors. 
                         
                        With regard to the energy sector, among other things, 
                          our decision will entail restructuring the electricity 
                          supply and distribution industries to introduce greater 
                          levels of competition. Independent Power Producers will 
                          be allowed into our energy system and localised energy 
                          grids for rural areas will be developed.  
                        A Gas Bill will be tabled in parliament and gas from 
                          Mozambique, in the first instance, will provide a new 
                          energy source for industry and domestic consumers.  
                        In the transport sector, among other things, new investments 
                          will be made and restructuring effected in the rail, 
                          road and port infrastructure, including the new port 
                          at Ngqura or Coega.  
                        Ngqura/Coega will be the first Industrial Development 
                          Zone to be gazetted in March.  
                        More efficient port operations, including the granting 
                          of concessions, as well as competitive tariffs will 
                          be introduced.  
                        Steps will be taken to increase the number of flights 
                          to and from South Africa to assist with the promotion 
                          of tourism. A final decision will be taken on the King 
                          Shaka Airport in Durban.  
                        With regard to the telecommunications sector, we will 
                          go ahead with the public listing of Telkom which is 
                          part of our broad programme of the restructuring of 
                          state assets. The outstanding matter of the third cellular 
                          licence will be resolved in time.  
                        Further investments will be made in this sector.  
                        The application of modern communication and information 
                          technology in the fields of education, health, commerce 
                          and government will be expedited.  
                        As we have said, this year a greater degree of certainty 
                          will be reached with respect to the policy and regulatory 
                          regime of the telecommunications sector.  
                        Because of the critical importance of this sector, 
                          we will also establish two bodies to assist the government 
                          as it works further to ensure that we do not fall further 
                          behind the rest of the world as a result of the digital 
                          divide.  
                        The first of these will be a Presidential National 
                          Commission on Information Society and Development. This 
                          will be constituted from representatives of our countrys 
                          public and private sectors.  
                        The second will be a Presidential International Task 
                          Force on Information Society and Development. C.E.Os 
                          from major international corporations and experts active 
                          in the field of information and communication technology 
                          will constitute this Task force.  
                        The members of the first of these bodies will be announced 
                          in the near future.  
                        I am also pleased to announce that the information 
                          technology companies that will be part of the Presidential 
                          Commission have already expressed their determination 
                          to work with the Government significantly to increase 
                          the numbers of skilled people in this sector.  
                        On behalf of the Government and all our people, I would 
                          like to thank all of them for their unequivocal commitment 
                          to helping our country to get onto and stay on the information 
                          super-highway.  
                        I am also pleased and privileged to inform Parliament 
                          and the country of the names of the distinguished members 
                          of the International Task Force. These are:  
                        Mr Larry Ellison of Oracle; 
                          Ms Carly Fiorina of Hewlett-Packard; 
                          Ms Esther Dyson of Edventure Holdings; 
                          Mr Craig McCaw of Teledesic; 
                          Professor Manuel Castell of the University of California; 
                          Mr de Beauce of Vivendi; 
                          Mr Serge Tchuruk of Alcatel; 
                          Mr Rajendra Pawar of NIIT of India; 
                          Mr David Porter of Psion; 
                          Dr Jung of Siemens; 
                          Dr Henry Chasia of Telehouse Space Ltd. 
                          Mr Shuttleworth of Thwate Consulting of South Africa. 
                        We expect to receive some additional names in the near 
                          future.  
                        We have identified other sectors of our economy that 
                          require special attention because of their potential 
                          to contribute especially to the objectives of higher 
                          growth rates and job creation.  
                        These include agriculture, tourism, certain export 
                          sectors, cultural industries and the information and 
                          communication sector.  
                        The specific export sectors we are referring to are 
                          agro-processing, automobiles and components, mining 
                          technology and minerals beneficiation and clothing and 
                          textiles.  
                        In addition to lowering input costs and improving competitiveness, 
                          these sectors will be stimulated through specific policy 
                          and regulatory actions that will be effected this year. 
                         
                        While not detracting from the states ongoing 
                          efforts to maintain and sustain other sectors of the 
                          economy, different and additional actions will be taken 
                          this year to reinforce the growth of the sectors we 
                          have mentioned.  
                        We may perhaps mention some specifics relating to tourism 
                          to illustrate the kind of attention the government will 
                          give to the identified sectors.  
                        The Business Trust has already announced its decision 
                          to help create 3,000 new black-owned tourism enterprises. 
                          This year, the Government and the Trust will fund 3,000 
                          learnerships in this sector.  
                        Major public sector investments have already been made 
                          in the Lubombo SDI and money will also be put into the 
                          Wild Coast SDI, including the rerouting and maintenance 
                          of the N2.  
                        Space has been and will be created for the private 
                          sector to invest in these and other S.D.Is, continuing 
                          our effort to build public-private-sector partnerships. 
                         
                        New initiatives will be undertaken by National Parks 
                          in all the areas under its control to improve and increase 
                          the tourism infrastructure without damaging the eco-environment, 
                          bring in private sector investment, absorb larger numbers 
                          of tourists, increase job opportunities and other benefits 
                          especially to the surrounding communities, and preserve 
                          the national heritage, such as our rich collection of 
                          rock art.  
                        We will take further steps to encourage the opening 
                          of trans-frontier parks with our neighbours while continuing 
                          to focus on such other important issues as waste management, 
                          desertification, climate change, persistent organic 
                          pollutants and land management.  
                        Of course, we will also pay special attention to the 
                          preparations for the World Summit on Sustainable Development 
                          which we will host next year and which will bring an 
                          estimated 50,000 people to our country.  
                        We must also report that the public-private sector 
                          International Marketing Council has already begun its 
                          work. We are certain that it will assist greatly to 
                          build a positive image for our country based on a more 
                          accurate and objective understanding of the advances 
                          we are making and the better future we are building 
                          for ourselves.  
                        We have also taken the necessary decisions with regard 
                          to the improvement of the conditions that underpin and 
                          constitute the enabling framework for economic efficiency 
                          and competitiveness.  
                        I refer here to human resource development, technology, 
                          the economic infrastructure and access to capital.  
                        Honourable Members will agree that welcome progress 
                          is being made in the efforts to improve the quality 
                          of education, including the provision of infrastructure, 
                          consolidating the culture of learning and teaching, 
                          and introducing Adult Basic Education. However, much 
                          more needs to be done to improve our skills base.  
                        In this regard, Government has approved a Human Resource 
                          Development Strategy that will enable us to launch an 
                          accelerated skills development programme for those areas 
                          that are critical to a more competitive economy.  
                        Immigration laws and procedures will be reviewed urgently 
                          to enable us to attract skills into our country. Improvements 
                          in maths and science education will also be prioritised. 
                         
                        We recognise the fact that competitiveness is driven 
                          by technological advances and innovation. In recognition 
                          of this, investment in research and development is one 
                          of the focal points of our integrated plan aimed at 
                          attaining a cutting edge in key areas such as biotechnology. 
                         
                        At the same time, we will continue with the consultations 
                          aimed at reforming the labour market, as well as investigations 
                          into the feasibility of reducing the cost of labour 
                          without reducing workers' wages.  
                        Investment in the economic infrastructure will be prioritised 
                          to support the high-growth areas, the integrated rural 
                          development strategy and the urban renewal programme. 
                          An additional R6 billion has been set aside for this 
                          purpose over the next three years.  
                        The Government remains concerned that access to capital, 
                          which is key to economic growth and the development 
                          of the small and medium enterprise sector in the economy, 
                          remains difficult for the majority. We need to develop 
                          the capacity to make such access easier while retaining 
                          a well managed financial sector.  
                        Accordingly, the regulation of the financial services 
                          sector will be reviewed this year. New partnerships 
                          with financial institutions will be explored and the 
                          micro-finance sector will be mobilised in support of 
                          entrepreneurship and productive activities.  
                        The success of the integrated action plan we have just 
                          detailed will be measured by how it impacts positively 
                          on a number of key performance indicators including 
                          economic growth rates, employment levels, competitiveness, 
                          black economic empowerment and small business development. 
                         
                        For us to achieve maximum results with regard to these 
                          economic initiatives will require not only the commitment 
                          and energetic involvement of the government but the 
                          building of a strong partnership with both business 
                          and labour.  
                        I therefore renew our appeal to our social partners 
                          to work together with us in a mutually beneficial partnership 
                          for change.  
                        On previous occasions we have reported that we were 
                          working on both an integrated rural development strategy 
                          as well as an urban renewal programme.  
                        In both instances our central aim is to conduct a sustained 
                          campaign against rural and urban poverty and underdevelopment, 
                          bringing in the resources of all three spheres of government 
                          in a coordinated manner.  
                        These programmes will, among other things, entail investment 
                          in the economic and social infrastructure, human resource 
                          development, enterprise development, the enhancement 
                          of the development capacity of local government, poverty 
                          alleviation and the strengthening of the criminal justice 
                          system.  
                        The new structure of local government, in urban and 
                          rural areas, will be the focal institution of government 
                          to ensure the coordinated implementation of our programmes, 
                          with the Ministry of Provincial and Local Government 
                          acting as the national coordinating ministry.  
                        Success in this work should have a positive impact 
                          on such areas as job creation, crime and violence, health 
                          and the general quality of life of millions of our people 
                          who lead desperate lives.  
                        Though it took longer than we thought in fact to elaborate 
                          realistic and integrated government plans, the individual 
                          departments and spheres of government have continued 
                          with their own programmes focused on these two matters 
                          of rural development and urban renewal.  
                        For example, investments totalling more than R3 billion 
                          have been made through the Consolidated Municipal Infrastructure 
                          Programme over the last three years, with 47 per cent 
                          spent in rural areas and 53 per cent in the urban areas. 
                         
                        The work that will help us to move to a higher phase 
                          with regard to rural development has now been concluded. 
                          Unfortunately, I cannot say the same for the urban renewal 
                          programme except in the instance of two areas.  
                        In both instances, the nodal points for the implementation 
                          of these programmes have been identified. With regard 
                          to rural development, these are:  
                        The O.R. Tambo, North East, Ukhahlamba and EG Kei District 
                          Municipalities in the Eastern Cape; 
                          The Umzinyathi, Umkhanyakude, Ugu and Zululand District 
                          Municipalities in KwaZulu-Natal; 
                          The Kgalagadi Cross Boundary District Municipality in 
                          the Northern Cape and North West; 
                          The Central Karoo District Municipality in the Western 
                          Cape. 
                          The Sekhukhune Cross Boundary District Municipality 
                          in Mpumalanga and the Northern Province; 
                          The Eastern District Municipality in the Northern Province; 
                          and, 
                          The Qwaqwa District Municipality in the Free State. 
                        With regard to the urban renewal programme, the areas 
                          identified include:  
                        Khayelitsha and Mitchells Plain in the Western Cape; 
                          KwaMashu and Inanda in KwaZulu-Natal; 
                          Mdantsane and Motherwell in the Eastern Cape; 
                          Alexandra Township in Gauteng; and, 
                          Galeshewe in the Northern Cape. 
                        With regard to these areas, we will only be able to 
                          act immediately with regard to Alexandra Township and 
                          KwaMashu. Work is going on to bring in the other areas 
                          as soon as possible.  
                        Beginning from this centenary year of Alexandra, R1.3 
                          billion spread over seven years will be set aside to 
                          embark on an integrated development programme that will 
                          deliver housing, roads, water, sanitation, schools, 
                          clinics, magistrate offices and police stations.  
                        Again I would like to emphasise that this does not 
                          mean that no work is being done in other areas. What 
                          we are addressing here is the elaboration and implementation 
                          of the urban renewal programme bringing together all 
                          three spheres of government.  
                        As we have already indicated, the success of these 
                          plans will also depend on the extent to which the people 
                          can be mobilised so that they become active participants 
                          in the processes targeted at the upliftment of their 
                          own communities.  
                        We therefore repeat the call that we must all unite 
                          in action for change.  
                        The social sector also has its own targeted programme 
                          of action focused on the social upliftment of especially 
                          the most disadvantaged in our society.  
                        It will implement coordinated programmes in the nodal 
                          rural and urban areas we have identified which, among 
                          other things, will address such issues as housing, water, 
                          sanitation, health including HIV/AIDS, pension pay-outs, 
                          household food security and nutrition, poverty alleviation 
                          including the provision of certain amounts of free services, 
                          Home Affairs services, education and training, sport 
                          and culture.  
                        Naturally, this does not mean that other areas of the 
                          country will be neglected.  
                        The sector will also focus on the complete transfer 
                          to their occupants of as many municipal houses as possible 
                          of the remaining 350,000 properties.  
                        Special attention will be paid to a more vigorous extension 
                          of the system of sanitation to contain the outbreak 
                          of water-borne diseases.  
                        In addition to the continuing campaign against AIDS, 
                          a more comprehensive approach to the health challenge 
                          in our country will be adopted to ensure an effective 
                          response to all infectious diseases, including malaria, 
                          tuberculosis, S.T.Ds, cholera, and hepatitis.  
                        Similarly, as already indicated in terms of some of 
                          the programmes we have already mentioned, we have to 
                          respond more decisively to other diseases of poverty 
                          such as those that are caused by vitamin, protein and 
                          energy deficiency.  
                        Work will be completed on a comprehensive social security 
                          system to try to extend the safety net to as many people 
                          as possible, bearing in mind the resource constraints 
                          we face and the need to ensure that we do not impact 
                          negatively on economic spending.  
                        We must again call on all our people to participate 
                          in the implementation of these programmes in the spirit 
                          of Masakhane.  
                        The Government will continue to pay the necessary attention 
                          to the issue of crime. We are very conscious of the 
                          fact that the safety and security of all our citizens 
                          is a fundamental right and a critical element in our 
                          continuing efforts to improve the quality of life of 
                          all our people.  
                        We want to arrive at the situation where all those 
                          who commit crime will know that they have nowhere to 
                          hide.  
                        The priority areas of focus with regard to the crime 
                          prevention and combating strategy will remain:  
                          
                        high crime areas;  
                          organised crime, including urban terrorism;  
                          crimes against women and children; corruption;  
                          cross border crime;  
                          and, social crime prevention.  
                          As we have already indicated, the areas chosen as the 
                          lead points in our urban renewal programme will also 
                          be particular points of focus for our criminal justice 
                          system.  
                        The 124 priority police stations that we have identified 
                          in the past will also continue to receive the necessary 
                          attention and resources to enable them to do their work. 
                         
                        In addition to other measures aimed at increasing the 
                          numbers of police personnel, the South African Police 
                          Service will give all required assistance to the Metropolitan 
                          Councils to enable them to establish their municipal 
                          police services where these do not exist.  
                        The National Directorate of Public Prosecutions and 
                          our courts will also continue with the measures they 
                          have already adopted to reduce and eliminate the unduly 
                          large backlog of cases that have not been tried.  
                        Similarly, work will continue to find a solution to 
                          the problem of overcrowding in our prisons caused especially 
                          by the large numbers of awaiting-trial prisoners.  
                        The criminal justice system will also further intensify 
                          its offensive against corruption among its own personnel. 
                          This will include the introduction of a new leadership 
                          at Correctional Services, an increase in intelligence 
                          resources dedicated to the fight against corruption 
                          and, where necessary, the expansion of the existing 
                          anti-corruption units.  
                        Last July, the Minister of Safety and Security placed 
                          a moratorium on the use within the Police Service and 
                          the release of crime statistics. This was because of 
                          serious problems about the integrity and reliability 
                          of these statistics which, among other things, made 
                          it very difficult to design accurate and optimal operational 
                          plans in the fight against crime.  
                        The point needs to be understood that perhaps more 
                          than anybody else, the Ministry and the Police Service 
                          constantly need accurate and up-to-date information 
                          on the incidence of crime to ensure proper deployment 
                          of human and material resources.  
                        Accordingly, extensive work has been and is being carried 
                          out to ensure the availability of this information. 
                          This has included and will include the training of over 
                          3,000 people and the recruitment of about 600 people 
                          to specialise on the issue of crime information.  
                        At this moment, it is expected that the moratorium 
                          will end at the end of June.  
                        The criminal justice cluster will also intensify its 
                          efforts to encourage further community involvement in 
                          the fight against crime and corruption. This will include 
                          the recruitment of 30,000 reservists especially in the 
                          already identified high-crime areas.  
                        Once more, this emphasises the importance of popular 
                          involvement in the common effort to change our country 
                          for the better.  
                        The challenge of ensuring the effectiveness and efficiency 
                          of the structures of government extends beyond the criminal 
                          justice system. It affects the entirety of government. 
                         
                        The strengthening of the system of local government 
                          is one of the priorities the government has set itself. 
                         
                        We are also focusing on the improvement of the quality 
                          of service delivery and efficiency in the use of public 
                          resources in all areas of Government, among other things 
                          to overcome the problem of under spending which continues 
                          to plague us.  
                        The gradual introduction of e-government will assist 
                          us greatly to overcome these problems.  
                        The sustained implementation of the governments 
                          human resource development programme to improve management 
                          and other skills as well as to enhance respect and observance 
                          of the principle of Batho Pele is also of critical importance 
                          to the achievement of our objectives.  
                        We will soon convene a strategy meeting to assess progress 
                          and problems with regard to the fight against corruption, 
                          in particular, to ensure the implementation of decisions 
                          reached in the Summit held about two years back. We 
                          will continue to take all necessary steps to limit this 
                          unacceptable practice.  
                        This will include thorough audits of some of the outgoing 
                          municipal councils after which decisive action will 
                          be taken against those found to have abused their positions 
                          for corrupt purposes.  
                        As Parliament and the country are aware, a successful 
                          Public Service Job Summit was held at the end of last 
                          month.  
                        I would like to quote some excerpts from the Preamble 
                          of the Framework Agreement arrived at, to show the commitment 
                          of the Government and the public sector unions to serve 
                          the people of South Africa.  
                        "The parties to the Public Service Job Summit 
                          meet at a time in the history of our country when the 
                          challenge of managing a transformation process in the 
                          public service is upon each of us. It is a time when 
                          the parties face the twin challenge of transforming 
                          the public service to improve the reach, depth, efficiency 
                          and quality of social service delivery, whilst at the 
                          same time improving the conditions of service, quality 
                          and sustainability of jobs for employees of the public 
                          service.  
                        "The parties acknowledge that they share a common 
                          commitment to a broader interest of serving the South 
                          African nation. Accordingly the parties record their 
                          commitment to respect in words and deeds one another, 
                          and to live by the spirit and letter of this agreement 
                          which shall govern the objectives, principles and procedures 
                          for the management of the transformation process." 
                         
                        The Government applauds these sentiments and commits 
                          itself to honour the agreement it has entered into. 
                         
                        Furthermore, we salute these freely agreed positions 
                          because they contain the important lesson for all of 
                          us that we need to unite in action to bring about the 
                          changes our country requires.  
                        I am very pleased that we have among us the former 
                          Minister of Intelligence, the Hon Joe Nhlanhla, a principled 
                          and loyal patriot. The cruel misfortune of ill-health 
                          brought about by pressures of work has deprived all 
                          of us of his dedicated service.  
                        I am certain that you all join me in wishing him the 
                          speediest recovery possible so that we could, once again, 
                          draw on his considerable talents.  
                        We have entered the 21st century having resolved and 
                          declared to ourselves, as Africans, and to the rest 
                          of the world that, primarily, none but ourselves can 
                          extricate us and our Continent from the curse of poverty, 
                          underdevelopment and marginalisation.  
                        The majority of people present in this Chamber are 
                          South African. Outwardly we are a people of many colours, 
                          races, cultures, languages and ancient origins. Yet 
                          we are tied to one another by a million visible and 
                          invisible threads.  
                        We share a common destiny from which none of us can 
                          escape because together we are human, we are South African, 
                          we are African.  
                        We have worked together for a decade to make of our 
                          country what for 300 years it was not. As a country, 
                          undoubtedly all of us will have made mistakes as we 
                          sought to build what had never been there, and will 
                          make yet more mistakes.  
                        But we were right and did not make a mistake when we 
                          agreed together that we will transform this common troubled 
                          motherland and set about the task of transforming it 
                          into a country of democracy, peace, equality and prosperity. 
                         
                        Many on our Continent and elsewhere in the world were 
                          pleased to count this infant South Africa as one of 
                          the jewels on the African crown.  
                        As these Africans of many races and colours we will 
                          and must work with the rest of our Continent and our 
                          partners across the globe to give life to a new Millennium 
                          African Recovery Programme.  
                        Together, we must turn into reality a new internationalism 
                          that does not permit of the coexistence within human 
                          society of opulence and grinding poverty, of a thriving 
                          modernity and a dehumanising underdevelopment.  
                        The burden of our prayer to you today has been that 
                          all of us must hold firm to the correct course we have 
                          chosen and hold firm to our resolve to walk that road 
                          together.  
                        Ahead of us is a new century and a new millennium. 
                         
                        We march into the new era of the African Century as 
                          Africans who have made the determination that this century 
                          will be a hundred years in which we cease to be victims 
                          of our circumstances but victors.  
                        By what we do, we will ensure that wars, disease and 
                          underdevelopment are no longer seen as being synonymous 
                          with Africans.  
                        Through our own actions we will ensure that poverty 
                          gives way to prosperity.  
                        As we strengthen the bonds of friendship and solidarity 
                          with our fellow Africans we have an obligation to help 
                          ensure that, in our country and everywhere else on our 
                          Continent, no African child should ever again walk in 
                          fear of guns, tyrants and abuse; that no African child 
                          should ever again experience hunger, avoidable disease 
                          and ignorance; that no African child should ever again 
                          feel ashamed to be an African.  
                        Our Government, democratically elected by the people 
                          of South Africa, will do its best to live up to these 
                          injunctions. We know it as a matter of fact that all 
                          men and women of conscience at home and everywhere else 
                          on our common planet will, themselves, take no other 
                          road but this one, for which many across the oceans 
                          describe ours as a land of hope.  
                        Thank you. 
                         
                         
                         
                        
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