13 May 2008
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Transcript of 13 May 2008
FINANCIAL AND NON FINANCIAL INFORMATION – 2007/08 FINANCIAL YEAR AND THE BUDGET FOR 2008/2009 MICRO PRIORITIZATION
13 May 2008
TABLE OF CONTENTS
• EXPENDITURE ON CONDITIONAL GRANTS• NON FINANCIAL INFORMATION
• MICRO PRIORITIES FOR 2008/2009 BUDGET
EXPENDITURE ON CONDITIONAL GRANTS
QUARTER EXPENDITURE PAYMENT SCHEDULE VARIANCE % VARIANCE
1ST Quarter 386,533 330,535 55,998 17%
2nd Quarter 456,070 633,232 (177,162) (28%)
3rd Quarter 781,116 604,232 176,884 29%
4th Quarter 1,005,794 979,224 26,570 3%
Subtotal 2,629,513 2,547,223 82,290 3%
EXPENDITURE ON CONDITIONAL GRANTS CONTINUED
Expenditure vs Transfers
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Apr-07
May-07
Jun-07
Jul-07 Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Month
Ran
d (R
'000
)
Actual Expenditure
Cashflow - Payment Schedule
EXPENDITURE ON CONDITIONAL GRANTS CONTINUED
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08
Actual Expenditure
Monthly Average
NON FINANCIAL INFORMATION
PROGRAMME SUB PROGRAMME
PERFORMANCE MEASURE
OUTPUT YEAR TO DATE
APR – DEC 2007
OUTPUT
JAN – MAR 2008
Housing Development Implementation
Individual Housing Subsidies Number of properties transferred or bonds registered
49 44
Number of beneficiaries approved 49 44
Number of sites serviced 49 44
Number of units completed 49 44
Housing Finance Linked Number of properties transferred or bonds registered
91
Number of beneficiaries approved
91
Project Linked Subsidies Number of serviced sites 16,212 393
Number of houses built and delivered to beneficiaries 7,341 410
Number of projects approved 61 11
NON FINANCIAL INFORMATION
PROGRAMME SUB PROGRAMME
PERFORMANCE MEASURE
OUTPUT YEAR TO DATE
APR – DEC 2007
OUTPUT
JAN – MAR 2008
Housing Development Implementation
Project Linked Subsidies Number of subsidies represented by approved projects 11,718 4,218
Number of houses completed 14,402 5,921
Phase 1 – Planning and Services
Number of stands serviced and delivered 2,656
Phase 2 – Housing Consolidation Number of houses 5,948
People’s Housing Process Number of subsidies represented by approved projects 3,210
Number of houses completed 1,270 569
Informal Settlement Upgrading
Number of units transferred 912
Number of serviced stands 1,018 6,452
Number of houses completed 2,722 1,761
NON FINANCIAL INFORMATION
PROGRAMME SUB PROGRAMME
PERFORMANCE MEASURE
OUTPUT YEAR TO DATE
APR – DEC 2007
OUTPUT
JAN – MAR 2008
Housing Development Implementation
Consolidation Subsidies Number of houses completed 7,113 1,927
Affordable State Rental Accomodation
Number of units upgraded 225
Number of units converted 1,249
Housing Property Management Maintenance
Number of houses maintained 51 213
Sale and Transfer of Rental Stock
Number of properties transferred 233
Number of properties sold 76
Enhanced Extended Discount Benefit Scheme
Number of residential properties transferred to households 9,403 2,924
NON FINANCIAL INFORMATION
PROGRAMME SUB PROGRAMME
PERFORMANCE MEASURE
ANNUAL TARGET
2007/2008
ACTUAL DELIVERY
2007/2008
Mixed Housing Development
Eradication of Informal Settlement
Project Linked Subsidies Number of subsidies represented by approved projects 31,794 16,611
Number of houses completed 36,498 29,221
Individual Subsidies Number of sites serviced 352 93
Number of properties transferred
70 91
Phase 1 – Planning and Services
Number of stands serviced and delivered 4,107 2,656
Phase 2 – Housing Consolidation Number of houses 6,384 5,948
People’s Housing Process Number of houses completed 1,504 1,270
Informal Settlement Upgrading
Consolidation (CBP)
Number of serviced stands 1,660 7,470
Number of houses completed 1,392 4,483
Number of houses completed 1,298 9,040
NON FINANCIAL INFORMATION
PROGRAMME SUB PROGRAMME
PERFORMANCE MEASURE
ANNUAL TARGET
2007/2008
ACTUAL DELIVERY
2007/2008
Alternative Tenure
Housing Assets Management
Affordable Rental Accommodation
Number of units upgraded 1,920 225
Number of units converted 886 1,249
Backyard Rental Number of beneficiaries assisted
750 761
Transfer of Rental Stock Number of properties transferred
4,004 233
Sale of Rental Stock Number of properties sold 300 76
Devolution of Rental Stock Number of houses and properties devolved to municipalities
950 98
Discount Benefit Scheme Number of residential properties transferred to households
32,500 10,792
TOTAL ACHIEVEMENT
Serviced stands achieved: 26,830
Houses Delivered: 63,487
Gauteng Province Micro Priorities for 2008/2009 Financial Year
PORTFORLIO COMMITTEE ON HOUSING
CONTENTS1. INTRODUCTION
2. HOUSING DELIVERY IN THE CONTEXT OF GPG STRATEGY
3. 2008/9 STRATEGIC OBJECTIVES
4. CURRENT PLANNING CONTEXT
5. STRATEGIC ANALYSIS OF THE OPERATIONAL ENVIROMENT
6. HOUSING DELIVERY TARGETS
7. BUDGET CONSIDERATION
8. CONCLUSION
1. INTRODUCTION
• In developing our strategy we recognized that the emphasis of housing delivery in Gauteng and indeed South Africa had moved beyond the issue of numbers to the enhancement of quality and building of thriving communities while at the same time trying to turn around the apartheid spatial development patterns that we had inherited
• We take cognizance of the June 2007 Provincial Exco Lekgotla resolutions which emphases the need to accelerate service delivery while reducing the cost of doing business
• We also note our achievements informed by the GPG Mid-term report which provides an indication that the department is on track to achieve its targets for the 5 YEAR TERM
2. HOUSING DELIVERY IN THE CONTEXT OF GPG STRATEGY
Sustainable Economic
development
Growth and Development Strategy
Social Development Strategy
Sustainable Development Strategy
Key Provincial Strategies
Gauteng Provincial
Government Departments
GPG 5 year plan of action
Susta
ina
ble
Other Provincial strategies
HRD Strategy
Gauteng Province
Economic growth and job creation
Reduced poverty and safe, secure and sustainable communities
Deepened democracy, nation building and citizenship
Healthy, skilled and productive people
Effective, responsive and caring government
Sustainable Economic
development
Growth and Development Strategy
Social Development Strategy
Sustainable Development Strategy
Key Provincial Strategies
Gauteng Provincial
Government Departments
Gauteng Provincial
Government Departments
GPG 5 year plan of action
Susta
ina
ble
Other Provincial strategies
HRD Strategy
Gauteng Province
Economic growth and job creation
Reduced poverty and safe, secure and sustainable communities
Deepened democracy, nation building and citizenship
Healthy, skilled and productive people
Effective, responsive and caring government
3. 2008/9 STRATEGIC OBJECTIVES
• To consolidate the Department’s efforts towards the conclusion of the strategic plan cycle
• To develop strategic interventions aimed at optimising performance (accelerating delivery)
• To realign the Department’s interventions to the strategy, housing demand, current back logs, budget and resources available
• To develop a basis for the formulation of plans that will be implemented by the Department beyond the current strategic plan cycle – Vision 2014
4.CURRENT PLANNING CONTEXT HOUSING OUTSTANDING BUSINESS BASED ON 2004/9 DEPT PRIORITIES
AND LEKGOTLA RESOLUTIONS
1. Mixed Housing Development-acceleration of land acquisition to promote new integrated settlements-reduction of long planning process in order to meet government priorities-acceleration of eradication of apartheid settlements -increased involvement of private sector investment
2. Eradication of Informal Settlements-more resources to meet 2014 targets- utilization of Alternative Building Technology to fast track development and usage of other energy sources-enhancement in the implementation of By-Laws-managing implications of rapid in-migration/urbanisation-de-linking subsidy from beneficiaries & other policy review
CURRENT PLANNING CONTEXT CONT…
3. Alternative Tenure-Conclude and implement strategy for lower income rental-Extend backyard rental programme to more municipalities-Mobilise alternative funding model for hostel redevelopment; upgrade 60 hostels-Role of SHI’s alternatives to SHI’s
4. Urban Renewal Programme-Increase pace of development -massify housing and infrastrucuture development-ensure local economic development
5. 20PTP-Synchronise budget provision across spheres of government-Drive integrated planning-Ensure targets and Premier’s timeframes are met
5. STRATEGIC ANALYSIS OF THE OPERATIONAL ENVIROMENT
Difficult conditions within the environment which is characterised by the following:
• Access to well located land• An acute housing demand which is exacerbated by urbanization and in
migration• Severe delivery capacity constraints i.e. material supply constraints,
capacity pressures on the construction industry, institutional constraints of the State
• A lack of systems aimed at up-scaling alternative building technologies as well as supporting rapid delivery
• A legal framework which is “unresponsive” to the needs of the Department i.e. a legislative framework which is largely compliance and procedurally based
• A constrained housing development process which requires that beneficiaries are linked to projects/ units ahead of actual delivery
• Create an enabling environment for the creation of integrated, sustainable human settlements.
Sub-Programme Key Measurable Objectives Performance MeasuresYear 1 2008/2009(target)
Mixed Housing Development and Formal Housing
To focus on the development of Flagship Projects, well located, integrated, higher density housing
Number of stands built 30000
Number of houses built FLISP 2500PROJ LINKED 27500
Eradication of Informal Settlement
To formalise and eradicate Informal Settlements No of subsidies approved(CBP, PHP, Formal Housing)
Number of houses built
Number of stands serviced
35406
26000
Alternative Tenure Provision of alternative tenure options through rental accommodation to alleviate the backlog and addressing the non-qualifiers
Number of hostel units
Number of social housing
Number of Backyard Rental
9500
4500
1000
Urban Renewal Coordination of high visibility projects in the historical rundown localities
Bekkersdal
Alex
Evaton
60 projects
90 projects
70 projects
20 PTP Rehabilitation of old townships for socio economic growth
Renovations/ Refurbishment of facilities
150 projects
6. HOUSING DELIVERY TARGETS
• As we strive towards the realisation of the 2014 vision, as a Department
we have identified issues that need immediate attention such as;* reducing the cost of doing business with government, * improving the commitment and upgrade skills of civil servants,
* improving communication with stakeholders and the public and focus all our projects to fight against poverty and unemployment.
• To this end, the Department had restructured its organisational structure and design with the view to strengthening it’s support plan in terms of fast tracking delivery from an integrated, all-inclusive approach.
• Based on the Conditional Grant allocation received from National, it is evident that the Conditional Grant allocation has grown substantially over the past two years, as well as into the MTEF period.
• However, the operational budget, in order to support the payment towards compensation of employees in terms of new recruits, has not grown in proportion to that of the Housing Subsidy Grant.
7. BUDGET CONSIDERATION
• Serious intervention between the National Department of Housing,
National Treasury, Provincial Treasury and Housing Sector at large would need to review the Baseline Allocation with regards to the operational Budget in order to have a meaningful inset on Housing Delivery and the quality thereof.
• Whilst this formula is outdated and not in line with the new Comprehensive Plan for the Department of Integrated Sustainable Human Settlements, the National Department of Housing is in the process of reviewing the formula for possible implementation in the 2009/2010 financial year.
• However, in response to the challenges of meeting one of the key political pronouncement of eradicating Informal Settlements by 2014, the financial forecasts and funding trend has indicated that this may not be achieved. Funding allocation of three times the existing rate would need to be availed in order to achieve the said target of 2014.
• Within the context of the Gauteng Department of Housing the forecasts resulting from possible scenarios is depicted hereunder. The Department has worked out three scenarios on the basis of which the priorities of the Department can be delivered, namely:
BUDGET CONSIDERATION
9. CONCLUSION
• Continuous engagement with both municipalities and private sector on resource mobilization needs to tightened.
• Greater emphasis to be dedicated to programmes that would yield high impact, high visibility housing delivery.
• Intensification of service delivery should match with greater spending and not conform to the indicative allocation.
• Continue to operate outside the confined current status quo such as de-linking beneficiaries to the product.
• Our situation demands a unique approach to respond to the needs of the majority of our citizens who have been disenfranchised
• We are confident that our government is on the right track in crafting mechanisms to ensure adequate shelter for deserving people of Gauteng.
THANK YOU
Questions and/or Points of Clarification