Monday, January 21, 2008

EC Housing MEC announces low-cost housing plan

EASTERN Cape Housing MEC Thoko Xasa has responded to a tongue lashing from her national counterpart, by announcing a low-cost housing delivery turnaround plan for the province.

Recovering from a stern warning issued late last year by Housing Minister Lindiwe Sisulu that "somebody's head will be cut off" if the Eastern Cape Government did not create the capacity to spend its full housing budget, Xasa said this week her department would in the new financial year, beginning April 1:

  • Build 26000 quality houses of at least 40m2 each;
  • Repair badly built houses that are falling apart;
  • Continue to upscale the tempo and quality of housing delivery;
  • Win back the R500 million her department had to hand back to national government due to a lack of capacity in spending it;
  • Build a new database of material suppliers and emerging contractors;
  • Overhaul material supply chains; and
  • Create new payment options to eliminate cash flow problems.

Xasa made the announcement at a provincial housing summit at the Regent Hotel last week, which was attended by both building material suppliers and emerging contractors.

She vowed to win back every cent of the budget forfeited to build quality low-cost houses.

Xasa said 26000 units was a low target, but her commitment was also to repair houses that were badly built and even bulldoze them if necessary.

Xasa also met with suppliers during a morning-long session last Thursday to discuss high prices, the quality of building material and a process to standardise prices.

She urged all building material suppliers to register with the provincial government in terms of the National Home Builders Registration Council (NHBRC) in a bid to pull all stakeholders together to achieve her goal of getting housing in the Eastern Cape back on track.

This would mean that every part in the supply chain material suppliers, contractors and sub contractors would now be regulated in terms of the NHBRC.

Last year Sisulu tore into the Eastern Cape Housing Department for what she called a dismal effort in building houses.

At the time she said housing in the province was in a crisis.

The R500m she took from the department was redirected to the Northern and Western Cape as the two provinces had demonstrated capacity to use their budgets effectively.

Xasa said yesterday national government would make good on the promise she received from Sisulu that her department would be reimbursed when they have built the capacity to spend their budget.

Xasa warned municipalities who were showing little success in housing delivery programmes.

We will take it back (the money and contracts to build houses at local government level) and reallocate funds. The payment of suppliers and contractors will also be overhauled in consultation with both groups.

New supply chain options for both suppliers and contractors are being finalised at the moment and will be ready for implementation with the new provincial housing building plan by April 1.

The Democratic Alliance in the province congratulated Xasa on her initiative to invite stakeholders to a planning strategy. - Daily Dispatch

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