SALGA NATIONAL CONFERENCE 2004

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1 APPENDIX 1 SALGA NATIONAL CONFERENCE 2004 CAPE TOWN DECLARATION We, the representatives of municipalities gathered in Cape Town under the auspices of SALGA, on the occasion of our Second National Conference convened from 26 to 30 September 2004, reaffirm our commitment to realising our developmental local government mandate and to achieving the Presidential targets as set out in the May 2004 State of the Nation Address. Inspired by the address of his Excellency, Mr Thabo Mbeki, the President of the Republic of South Africa, and appreciating the participation of members of the Cabinet, members of Parliament, Premiers and members of Provincial Governments, international partners, and representatives from civil society and business. We hereby adopt this Declaration in the firm belief that it paves the way towards improved and accelerated service delivery for the next decade. RECOGNISING: The prevailing levels of poverty & HIV & AIDs in our society, the duality of our national economy, and the critical role of municipalities in promoting and facilitating economic growth; The importance of gender equity and the empowerment of women, youth and the disabled in society; That the lack of access to basic household services remains an obstacle to achieving sustainable social and economic development. That accelerating service delivery to the most deprived is not simply a development challenge, but is the responsibility of government and society as a whole; The progress that has been made to date with regard to service delivery and the imperative of a peoples contract towards accelerating service delivery and deepening local democracy; That the creation of sustainable integrated human settlements is dependent on the integration and co-ordination of land-use planning, and housing, water, sanitation, electricity and social services policies that are streamlined; The advantages of integrating the public sector in order to enhance service delivery; That municipalities must be financially sustainable in order to accelerate service delivery; Final Draft 1

2 The responsibility of SALGA and its members to spearhead the NEPAD agenda and participate in the development of democratic local government through partnerships and other relationships in Africa and the world; The progress made in implementing the Mangaung Resolutions adopted at our First National Conference, in particular the restructuring and positioning of Organised Local Government and the strengthening of political leadership. WE THEREFORE RESOLVE THAT SALGA shall: 1. Serve as a focal point for tracking progress in achieving government targets for the sector; identifying blockages; and identifying the need for corrective action; 2. Ensure that the period prior to the Local Government election be utilised for consolidation to ensure consistent implementation of local government legislation throughout the sector, and to enable municipalities to entrench themselves structurally and operationally as constitutional governments; 3. Ensure that a set of principles be collectively developed to guide the future development and implementation of legislation impacting on local government; 4. Engage with national government to ensure MIG allocations and Equitable Share transfers that more accurately reflect municipal needs; 5. Undertake a comprehensive review of the legislative and policy framework impacting on local government with a view to identifying inconsistencies, lack of integration, contradictions and impracticalities, in order to take the necessary mitigatory steps; 6. Uphold the need for a Consolidated Capacity Building Grant; 7. Assert that planning for housing is the responsibility of municipalities thereby ensuring the synchronization of housing with the delivery of other basic services; 8. Actively promote the use of IDPs as a state-wide planning tool; 9. Continue its support for and commitment to realising the objectives of EDIR whilst also ensuring that the constitutional right and mandate of municipalities to reticulate electricity is protected; 10. Mainstream gender equity and promote the full implementation of the resolutions of Women s conferences; 11. Maintain that the principal objectives of public sector integration are to enhance service delivery by overcoming fragmentation across government structures; to facilitate the mobility of skills between spheres of government; and to improve integrated planning and co-ordination. 12. Actively build and strengthen the UCLGA in order to promote democratic and developmental local governance and a strong African leadership cadre; 13. Actively promote the establishment of South-South strategic partnerships, and in the SADC region in particular through participation in NEPAD programmes. Final Draft 2

3 Municipalities shall: 14. Ensure that they achieve the Presidential targets by identifying (a) blockages to delivery, (b) measures to address blockages, (c) capacity and support required, and (d) early warning monitoring mechanisms; 15. Ensure that quality levels of service are provided to all residents on a financially sustainable basis; 16. Commit to improve their revenue collection systems and to recover the cost of consumption in excess of the free basic allocation; 17. Ensure that through partnerships the economic agenda is systematically promoted towards: facilitating pro-poor economic development; bridging the gap between the first and second economies; supporting diversification of the local economy; and facilitation of investments and business expansion; through realistic planning based on local strengths and weaknesses. 18. Ensure that a fundamental instrument for sustainable job creation in the implementation of the Expanded Public Works Programme. SALGA, therefore, calls on the other spheres of government to: 19. Ensure that sufficient financial and other resources are provided from the national fiscus to facilitate acceleration of service delivery, in terms of both capital and operational expenditure, based on the service delivery targets of each municipality; 20. Apply the principle of finance follows function to functions already transferred and those to be transferred to local government; 21. Implement an integrated planning approach across sectors based on the IDP. 22. Give priority to the target of all schools having access to adequate and safe sanitation services by 2005, and in particular for the provincial departments of Education to work with municipalities towards realising this target. WAY FORWARD This Declaration is supported by the Resolutions of the National Conference which shall form the basis of SALGA s Programme of Action. SALGA will review progress made in implementing the provisions of this Declaration and the Conference Resolutions and shall issue progress reports for consideration by the National Members Assembly and popularise these resolutions and reports through forms of communication accessible to all. We affirm our full support for these common objectives and our collective resolve to achieve them. 30 th September 2004 Cape Town Final Draft 3

4 ANNEXURE 1: CONFERENCE RESOLUTONS 1. POVERTY ALLEVIATION AND JOB CREATION (LED) 1.1. That Municipalities prioritise the implementation of the Expanded Public Works Programme as a primary approach to Job creation. In so doing municipalities shall: Seek to increase the percentage of budgets (in addition to MIG allocations) directed towards labour-intensive projects Ensure that the economic impact of the EPWP is readily multiplied to ensure sustainability Ensure that skills development interventions are accelerated in response to local economic needs as well as establishing, at the level of SALGA, suitable capacity to deliver training Draw on the support of SALGA and the Department of Public Works That through Local Economic Development plans and strategies municipalities and other actors strive to bridge the gaps that manifest in the local economies. To this end: Municipalities must seek to make sector specific support and/or interventions to improve the performance of the targeted sectors the institutional arrangements must be responsive to the local perculiarities Municipalities must aim at achieving human development outcomes in addition to creating the enabling environment for local economic growth Municipal economic growth and development summits be convened at district level That municipalities seek to maximise efforts to eradicate poverty through: Implementation of indigent registers by June the integration of social security grants and indigent management systems and services, in cooperation with provincial and national departments the integration of Poverty alleviation and responses with health challenges such as communicable illnesses, HIV&Aids and Tuberculosis Active support to livelihoods and food security interventions taking into account land accessibility and ownership needs That Municipalities should seek to realise the objectives of Broad-based Black Economic Empowerment, growth and development as well as ensuring sustainable access to economic opportunities through, inter-alia: their procurement systems, development planning and service delivery recruitment, Infrastructure development and extension Support to SMMES and cooperatives 2. INTEGRATING THE PUBLIC SECTOR 2.1. That principles regarding the assignment of powers and functions should be endorsed with the proviso that: The principle of finance follows function be applied to both functions already transferred and those to be transferred These costs be factored into the processes aimed at reviewing the equitable share That the core objectives of the IGF Framework Bill be endorsed with the proviso that: The relationship between different spheres planning instruments and intergovernmental fiscal processes is made Mechanisms are developed to co-ordinate more effective service delivery beyond impact zones The role of OLG in intergovernmental relations be incorporated That the timing and sequencing of the inter-sphere planning cycle be finalised as a matter of urgency That the envisaged Public Administration Management Act (PAMA) be the overarching legislation aimed at instituting common norms and standards, with subsequent separate legislation governing sector specific issues. Final Draft 4

5 2.5. That PAMA should expand its focus beyond HR issues to include systems and operations vital to integrated delivery That the Policy Framework for the Transfer of Human Resources be endorsed with the proviso that: Its applicability to public/municipal entities be clarified The issue of incentives to be encourage transfer be further explored That a consultative instrument should be established forthwith to include all the stakeholders affected by the process, to give effect to consultation on the matter. 3. WOMEN IN LOCAL GOVERNMENT: GENDER EQUITY AND EQUALITY 3.1. SALGA national, provincial structures and municipalities must monitor and evaluate implementation of all the resolutions taken at the SALGA NGC 2002 and Women in Local Government Conferences held in 2002, 2003 and 2004 and that quarterly reports from provinces and municipalities are presented to SALGA National Executive Committee To adopt the 50/50 representation of men and women in all structures of local government and the 50% quota must be legislated as part of the SALGA constitution, and that SALGA must consult with the structures of civil society widely to ensure that this view is adopted The first SALGA National Executive Committee sitting after the conference, and municipal councils must adopt the proposed SALGA Gender Policy Framework SALGA and its member municipalities must set up well-resourced gender machinery/structures (Women s Caucuses, Gender Section 79 Committees and the gender focal points) to implement the SALGA Local Government Gender Policy To endorse the formation of the SALGA National Women s Caucus that will coordinate issues of women empowerment in local government SALGA must increase the representation and participation of women leadership in organized local government at provincial and national level in both the administration and political wings of local government SALGA must ensure continued capacitation, empowerment and development of women and youth in particular to ensure efficient succession and retention of women in local government. 4. SALGA S ROLE IN AFRICA AND INTERNATIONALLY 4.1. That SALGA actively participate in the governance and programmes of UCLGA and UCLG by providing political leadership and technical support wherever possible and actively seeking election to office That the inter-linking principles and objectives of developmental local government be actively pursued by integrating the activities of UCLG,UCLGA and NEPAD to this end That SALGA actively promote and pursue the African agenda through its continental and international participation That SALGA and its members actively engage in the global dialogue on the nature and the role of local government with a view to promoting decentralisation and democratisation in particular by advancing the South African model as an ideal That SALGA and its members, through engagement with the national government and through UCLG and UCLGA, shall promote and support the adoption by the UNO of those portions of the CARDOSO report relating to local government That SALGA implement a programme of action to actively encorage its members to develop South / South relationships in their international activities, with focus on relationships in Africa and the SADC region in particular That SALGA implement a program of action focused on ensuring that every municipality has a councillor and an official who include international relations amongst their responsibilities That SALGA in partnership with dplg and DFA develop and distribute to members a practical guide on all aspects of developing international relationships With regard to UCLGA and its founding congress: That SALGA actively oppose the location of the Headquarters in Morocco That SALGA actively oppose the entrenchment in the constitution of the role of the MDP. Final Draft 5

6 That SALGA implement a process to identify councillors to seek election to office in UCLGA and develop and implement a strategy to campaign for their election That SALGA identify the political issues for resolution at the founding congress and develop and implement a strategy to ensure they are adopted That SALGA facilitate a pre conference preparation workshop to promote unity of purpose amongst its members That SALGA develop and implement a committed programme of participation in the programmes of NEPAD, through the UCLGA and the activities of the member municipalities. 5. ACCELERATING SERVICE DELIVERY WATER AND SANITATION 5.1. SALGA should undertake a MIG audit on a quarterly basis to ensure proper use of the fund and to track implementation The role of innovative approaches in policy and project implementation must not be underestimated SALGA should lead and direct municipalities in order to assist them to meet their service delivery targets LGWSETA, DPLG, SALGA and DWAF should work together on the issue of capacitating municipalities and communities to avoid duplications. 6. ACCELERATING SERVICE DELIVERY - HOUSING 6.1. That SALGA endorses the (new) comprehensive integrated human settlement plan in principle and further subject to: The conclusion of the Department of Housing consultation with SALGA and municipalities by December The development of appropriate levels of capacity in municipalities The adoption of negotiated accelerated intervention mechanisms to resolve backlogs and challenges currently experienced by municipalities Securing a suitable funding protocol for the provision of social and related amenities and infrastructure in human settlements The introduction of a framework for the provision of temporary basic services in informal settlements SALGA introducing a housing peer support knowledge sharing programme in co-operation with the Department of Housing Municipalities, provincial and National Departments concluding a compact (framework) to ensure the appropriate prioritisation of publicly owned land in favour of housing. 7. ACCELERATING SERVICE DELIVERY - ELECTRICITY 7.1. That SALGA continues its support for, and commitment to, the EDI restructuring and must put mechanisms in place to ensure effective feedback to Provinces and Municipalities SALGA supports the need for ring-fencing of Municipal Electricity Units to prepare for a smooth transition to RED s Valuation of assets (after ring-fencing) must involve a weighted combination of asset value and income stream derived from assets/ business Municipalities must retain the income that they derived in the past from electricity distribution That, in line with the objectives of the EDIR, the option of Eskom s shareholding in the REDs be discouraged That, regarding the Section 78 processes in respect of the REDs, and in view of the urgency to conclude the EDIR process as well as the attendant cost implications, consideration be given to a general exemption from undertaking the Section 78 processes or, alternatively, the funding for the secion 78 processes be secured through the National Fiscus. Final Draft 6

7 7.7. That the Legal Status of REDs be closely aligned with municipalities (i.e. Municipal Entity with a board consisting of Municipal Managers) SALGA to advocate that the imminent EDIR legislation must be consistent with the constitution to protect the entrenched right and mandate of Municipalities as electricity reticulation authorities SALGA supports investment in electrical infrastructure to sustain networks and to engage with National Treasury and the Department of Minerals and Energy with respect to funding Recommends that Municipalities develop accurate programs and plans on Electrification for submission to the Department of Minerals and Energy based on accurate electrification needs That SALGA in, partnership with Eskom and other partners, develop a protocol to improve the relationship between Eskom and Municipalities in areas serviced by Eskom, until the REDs come into operation That SALGA seeks the alignment of Electricity tariff determination cycle with the municipal budget cycle SALGA seeks the conclusion and implementation of electricity tariff rationalisation That Municipalities, in recognising the paradigm on sustainable development, mainstream the sustainability issue with respect to alternative and renewable energy sources as well as give consideration to developing local Integrated Energy policies. 8. ENABLING THE LEGISLATIVE ENVIRONMENT 8.1. That SALGA (in partnership with other agencies as may be necessary) develop and implement a series of hands-on interventions targeting all member municipalities and aimed at improving knowledge and understanding of the legislative regime in which they operate That SALGA undertake a comprehensive review of the Local Government Legislative Framework with a view to identifying inconsistencies, lack of integration, contradictions and impracticalities, as well as any possible unconstitutional provisions That SALGA undertake a similar comprehensive review of all existing sector based legislation SALGA must develop a set of principles that must inform and guide the development and implementation of legislation for and affecting local government. These principles should relate to all legislation, including legislation that at first glance does not appear to impact on local government. These principles must be submitted to and endorsed by Cabinet and all provincial executive councils and consideration thereof must be demonstrated during consultations with SALGA. Consideration should also be given to the inclusion of these principles in the draft Intergovernmental Relations Policy Framework. The principles could include: An assessment of the potential financial and human resource effect of the proposed legislation on the administration of municipalities An assessment of the extent to which the executive authority of municipalities is supported and strengthened; Provision for the progressive implementation of legislation over time taking into account the different types of and levels of capacity within municipalities; An assessment of the capacity building needs of municipalities to achieve implementation (and progressive implementation) of legislation; Ongoing support and advice relating to the implications and implementation of legislation; Allocation of financial support for the implementation of legislation, specifically to address impacts and capacity building and the like (this may include financial allocations to SALGA to support implementation and provide ongoing support and advice); and Coordination of the planning and reporting requirements of legislation Assessment of the capacity of national and provincial departments given specific support and oversight responsibility in terms of legislation or proposed legislation. Final Draft 7

8 8.5. That SALGA facilitate the rapid finalisation of the provincial legislative rationalisation process, if necessary, through the medium of the Intergovernmental Forum (IGF) referred to below That SALGA promotes the establishment of a formal standing Intergovernmental Forum consisting at least of SALGA, dplg and provincial local government departments through which, inter alia, to: Oversee and implement the process in resolution 8.4 above Negotiate and promote the necessary legislative amendments, coordination and rationalisation emerging from the process in resolutions 8.2 and 8.3 above That SALGA seeks a better alignment of the municipal governance structures with those of the national and provincial spheres through defined separation between the executive and the legislative components That SALGA actively pursue the review of the basis of remuneration of councillors with a view to achieving a consistent approach across all spheres of government. Final Draft 8