Supporting the local sphere: The role of the National and Provincial Spheres

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Supporting the local sphere The role of the
National and Provincial Spheres

• Presentation by
• Ms Lindiwe Msengana-Ndlela,
• Director-General,
• Department of Provincial and Local Government
  (dplg)

21 September 2004
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Content

• Introduction
• The challenges of the 2nd Economy
• The place of local government within
  the intergovernmental system
• Engaging and supporting municipalities
• Assigning additional responsibilities to
  municipalities
• Conclusion

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1. INTRODUCTION
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Introduction

• First part
• Constitutional duty on national and provincial
  government to support municipalities.
• Second part
• Intergovernmental relationship of local
  government to provincial and national government.
• Third part
• Duty of other two spheres to support
  municipalities.
• Fourth part
• Examination of regulatory framework, principles
  and procedures governing the assignment of
  additional functions to municipalities.

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2. CHALLENGES OF THE 2ND ECONOMY
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Challenges of the 2nd Economy

• 1st Economy is at the cutting edge, globally
  integrated and has the capacity to export primary
  commodities, services and manufactured goods.
• 2nd Economy exists at the edges, consisting of
  large numbers of unemployed and unemployable.

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Challenges

• Features of 1st Economy
• Farm areas, townships and informal settlements
  reflection of some characteristics of the 2nd
  Economy -

• kwaGxagxa
• eJoe Slovo
• eKanana
• eLusaka
• eNewrest
• kwaVukuzenzela

• kwaLanga
• eNyanga
• eGugulethu
• eKhayelitsha
• eBarcelona
• eBoystown
• eEurope

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Challenges

• Municipalities are required to play important
  role in South Africas war on poverty and
  under-development.
• Next 5 years every effort to be made to direct
  government support to the consolidation of local
  government.
• Some communities still do not have access to
  basic services such as clean water, adequate
  sanitation, food security and appropriate shelter.

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Challenges

• According to Stats SA
• Khayelitsha
• 64.4 households live in informal dwellings
  compared to national average of 15.6.
• Motherwell
• 61.3 households live in informal dwellings
  compared to 41.8 in Inanda and 30.9 in
  Alexandra.

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3. PLACE OF LOCAL GOVERNMENT WITHIN THE
INTERGOVERNMENTAL SYSTEM
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Place of local government within the
intergovernmental system

• Total transfers to three spheres
• National government received approximately 37
• Provincial government 58 and
• Local government approximately 5.
• Policy and legislation has been enacted since
  1996
• The Intergovernmental Fiscal Relations Act
  (1997)
• The Local Government White Paper (1998)
• Municipal Structures Act (1998)
• Municipal Demarcation Act (1998)
• Municipal Systems Act (2000)
• Municipal Finance Management Act (2003)
• Municipal Property Rating Act (2004)
• Traditional Leadership Framework (2004) and
• The Division of Revenue Act (2004).

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4. ENGAGING AND SUPPORTING MUNICIPALITIES
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Engaging and supporting municipalities

• Municipalities throughout the country to become
  sustainable institutions.
• Have an understanding an appreciation of service
  delivery backlogs local municipalities face.
• Need to understand available policy instruments
  and institutional mechanisms designed to address
  these backlogs.
• Ensure individually and collectively to
  practically engage and support municipalities to
  meet objectives by government.

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Engaging and supporting municipalities

• Ugu District Municipality
• Population approximately 687 000.
• Population is predominantly rural.
• 15 in urban coastal strip.
• 15 on commercial farms.
• 70 in traditional rural areas.

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Engaging and supporting municipalities

• IDP process following phases
• Analysis
• Development of strategies
• Identification of projects
• Integration of programmes, sector alignment and
  establishment of a sustainability framework
• Public comment and Council approval
• Implementation, Monitoring and Evaluation.

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5. ASSIGNING ADDITIONAL RESPONSIBILITIES TO
MUNICIPALITIES
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Assigning additional responsibilities to
Municipalities

• Constitution permits national and provincial
  government to assign additional powers and
  functions to municipalities.
• Assignment has lasting implications for municipal
  stability and service provision.
• Assignment not a solution to service delivery
  challenges or undertaken for reasons of
  administrative convenience.

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6. CONCLUSION
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Conclusion

• Many challenges can be successfully addressed if
  municipalities receive direct support and engage
  directly with the other two spheres.
• Assist managers to understand the nature of the
  IGR system, place and role of local government.
• Our mandate and mission is clear.
• Thank you.