DOCUMENTS

How Cape Town delivers to the poor - DA

Party says addressing poverty has been a key strategic focus

Democratic Aliance, "A City for all the People: The DA's record of delivering to the poor in Cape Town 2006-2011", April 5 2011

Introduction:

The City of Cape Town under the DA has made delivery to the poor one of its highest priorities. Only by ensuring that the poorest people have access to free services and opportunities to improve their lives can we begin to speak about providing for all the people.

Cape Town is a city that belongs to all of its citizens. Part of the DA's vision of an open, opportunity society for all is the understanding that in order for all people to truly reach their full potential, those who need a helping hand must get one. An individual cannot create opportunities for themselves or benefit from the opportunities provided if they are trapped in a cycle of poverty from which they have little hope of emerging.

Addressing poverty is a key strategic focus for the DA. Our vision of Cape Town, and indeed of South Africa, is one where we can truly create a future that belongs to everyone. But to build that future, we must face up to our past; acknowledge it; and address its structural inequalities.

The fight against poverty has been waged on two fronts by the DA: poverty alleviation and poverty reduction. Both work in tandem to create the opportunity society for all, the most advanced stage of which is the creation of an economic environment that creates opportunities.

But the first step is alleviating the most direct forms of poverty to help people. For the past 5 years, the City of Cape Town under the DA has been doing that. Through a multi-faceted campaign fought on many fronts, the DA has been ensuring that Cape Town delivers to everyone and especially the poor.

This document discusses that record of delivery by focusing on several key areas.

The first section is the City's indigent policy which has been the vehicle of the DA's pro-poor package of services. It illustrates the success and extent of providing basic services for free to the poorest registered households.

The second section deals with the City's record in delivering services to those who are not registered but often form the largest population groups of South African cities: the residents of informal settlements. It demonstrates that even where the City has been faced with the challenge of providing services to constantly shifting and changing communities it has been able to deliver by prioritizing delivery to informal settlements according to several strategic objectives.

The third section deals with health care. Under a DA administration, the City has had an excellent record of providing basic healthcare facilities to all residents. The clinics which are staffed and paid for by the City are a critical element of social service provision to the poor.

The fourth section deals with the City's housing record. Since the advent of democracy in 1 994. the provision of adequate housing for citizens has been one of the major challenges of various South African governments across different spheres. This section demonstrates the strides the City has made under the DA to accelerate the rate of basic housing provision and also initiate new and innovative polices which have specifically allowed for the upgrade of existing settlements and communities.

The final section provides a case study of the City's ability to deliver services to a particular community and focuses on Khayelitsha, specifically the City's role as the service provider for the Urban Renewal Programme (URP) with other partners and the effects of the City's Violence Prevention through Urban Upgrading (VPUU) Programme in conjunction with other partners and stakeholders.

The DA's track record in delivering for the poor has been supported by various independent sources. In 2009, data providers IHS Global Insight, ranked Cape Town the top metro in South Africa in terms of household access to water, sanitation, refuse removal and electricity. Empowerdex, the BEE Ratings Agency, found that "Cape Town is clearly the best city in the country for service delivery".

According to the National Department of Local Government and Traditional Affairs' Universal Household Access to Basic Services (UHABS) survey, local authorities across the Western Cape were last year ranked number one out of all nine provinces for service delivery in the UHABS Index.

And according to an independent 2010 survey done by the South African Institute of Race Relations (SAIRR), Western Cape municipalities provide more free basic services like water, sanitation and waste removal than anywhere else.

These endorsements and the information contained in this document point to a city that is inclusive and caring and a DA administration that has fulfilled its pledge to deliver to the poor and truly make Cape Town a city for all the people.

Indigent Policy:

At the centre of this focus is the City's indigent policy. In the 2010/2011 financial year, the City spent almost Ri .16 billion on providing services to the poor. The City has two working definitions of poverty: the first applies to households where the income is less than R3000 a month.

The second is where the value of the property is below a certain value. The qualifying property value varies per service so that certain categories receive all free services while others receive certain services for free. These qualifications affect the total rates rebates for services according to the following criteria:

Rates rebates:

  • Rates - Houses valued at under R200 000

Free water provision:

  • Water & Sanitation - Houses valued at under R300 000

Free refuse collection:

  • Households valued at under R100 000 (100% rebate)
  • Households valued at under R150 000 (75% rebate)
  • Households valued at under R350 000 (50% rebate)
  • Households valued at under R400 000 (25% rebate)

People do not necessarily apply to be beneficiaries of the city's indigent policy. The property value qualification is applied automatically. Anyone who wants to apply under the household income qualification has to apply at a City cash office. There is no waiting period.

In total, 161 045 households receive the total package of free indigent services. Those are the figures for households who benefit from the total indigent package. For those who receive other free services, the number even is higher.

The most recent figures for all services for all households in the City (Both formal & informal, not only poor households):

Water supply:

  • Piped water inside dwelling: 714 000
  • Public tap at least at minimum service level: 190 000
  • Total households receiving water: 904 000

Sanitation:

  • Flush toilet connected to sewage: 812 000
  • Chemical toilet 16 000
  • Ventilated Pit toilet 2 000
  • Other toilet > minimum service level 50 000
  • Total at minimum service level and above 880 000

Refuse collection:

Households receiving at least once weekly service: 904 000

Households receiving Free Basic Services

Water:

  • 6kl/month 505 000
  • 10.5 kl/month 209 000
  • Public tap 190 000

Sanitation 880 000

Electricity (S0kWhrs/month) 449 000

Refuse removal (free or subsidised) 481 000

For all beneficiaries of the indigent policy, services are provided free. Rebates are credited automatically to peoples' accounts.

The free provisions of the policy are:

  • Water & sanitation: 10500 L/month (=350 L/day)
  • Electricity: SokWhrs/month
  • Refuse: 1 bin/week/household

Once people reach their allotment of free water and electricity, they then have to pay the required tariff if they want additional services. However, no domestic property that legitimately cannot pay for services has their electricity or water cut off. Indeed, the water flow system regulates the amount of additional water ensuring that those who cannot pay still have access to water.

This policy has been made possible by the City's drive to distinguish between those people who genuinely could not afford to pay rates and those who could afford to but would not. From 2006, the City began a strict credit control policy whereby 300 000 letters were sent to those who had not paid their bills, reclaiming money from 130 000 people who could pay.

This distinction has allowed the City to deliver services to the poor. Indeed, the operating revenue the City of Cape Town is expending on free services for 2010/2011 financial year is as follows:

  • Water 427 195 000
  • Sanitation 274 789 000
  • Electricity 180 955 000
  • Refuse 275 019 000
  • Total R 1 157 958 000

For the 2011/2012 financial year, the DA administration has proposed spending R1.26 billion on poor residents.

Some key changes in the proposed 2011/12 budget include:

  • Reclassifying old age homes as residential not commercial properties, thus reducing their rates
  • A new rates rebate category whereby all poor households with income levels between R3 000 and R4 000 per month will receive a rates rebate of 50%. Currently, indigent households with a combined income of less than R3 000 per month qualify for 100% rates rebates.

Informal settlements:

The provisions of the indigent policy apply to services provided to formally registered properties and households. Indeed, all formal registered properties have access to water, sewage, electricity and refuse removal. In informal settlements, however, basic services are still provided to the following national standards:

  •  Taps within 100 m of households,
  • Toilets of at least 1 per 5 household
  • High mast lighting
  • Bagged refuse collection

Specifically concerning informal settlements, in May 2007 the City Council approved the Informal Settlements Master Plan. According to this plan, the City identified the following essential services for provision:

  • Sanitation services. The current standard is to provide one toilet facility for every 5 dwellings.
  • Potable water services. The current standard is to provide one standpipe facility for every 25 dwellings.
  • Area (mast) lighting services. A system is to be provided for every settlement. The City has also provided electrification for areas that actually fall under Eskom's jurisdiction, such as Happy Valley and Site B in Khayelitsha.
  • Solid waste removal services. A system is to be provided for every settlement.

This plan identified 222 Informal Settlements across the metro and prioritized the provision of essential services to these areas. Since its operation, it has had some significant achievements as reported by updated figures from 2009:

  • Number of toilets provided- 20 388
  • Number of standpipes provided for potable water- 4290
  • Number of settlements with complete mast lighting system- 93
  • Number of settlements that now have a waste removal system: 223
  • Number of new housing opportunities provided- Over 20 000

Sometimes, however, it is not always possible to achieve the desired standards due to the density and lack of space in some settlements. Every effort is made to subscribe to these standards and ensure the success of the informal settlements policy so that all citizens can enjoy services from the City.

Health care:

The City operates 4 Community Health Centers, 86 Fixed Clinics, 18 Satellite Clinics and 5 Mobile Clinics.

The total expenditure for health over the past five years is as follows:

  • 2005/2006: R299 620 127
  • 2006/2007: R 333 938 047
  • 2007/2008: P394 657 675
  • 2008/2009: R469 010 398
  • 2009/2010: R656 819 419

In the past year, the total expenditure of the City on healthcare per region, was as follows:

  • Eastern: R 64 835.429
  • Khayelitsha: R 68 954 493
  • Kilpfontein: R 60 049 136
  • Mitchells Plain: R 74 039 028
  • Northern: R 44 810 320
  • Southern: R 71 523 648
  •  Tygerberg: R73 403 571
  • Western: R 70 403 522

Over the past 5 years, the City has built the following new health clinics:

  • Delft South Clinic 05/06
  • Dr Ivan Toms Clinic 06/07, Mfuleni
  • Bothasig Clinic 07/08
  • Wesbank Clinic 08/09. Mitchell's Plain
  • Town 2 Clinic 09/10, Khayelitsha
  • Eerste River Clinic 10/11 - in progress

The focus on investment in primary health care and those who staff the City's facilities has yielded tangible results for the people of Cape Town, especially the poor.

Historically, Cape Town has been faced with particular health challenges, especially the extent of Tuberculosis (TB) in the city. A pilot project in Khayelitsha undertaken by the City, in conjunction with the Provincial Government of the Western Cape and Medicins Sans Frontieres, has provided a model of how local governments can effectively combat this disease.

The Khayelitsha model treated multi-drug resistant (MDR) sufferers at home and at primary health clinics rather than at central hospitals. This has been the patient- centred approach of the project since 2007. The results have been a resounding success. Not only has there been a marked decline in MDR-resistant TB in the area, but the time between infection and treatment of the disease has been dramatically reduced.

This pilot project is not the only success the city has had in dealing with TB, however.

Last year the City, in partnership with the provincial government and the TBIHIV Care Association, received an award from the United Nations (UN) in recognition of achievements in the global fight against TB.

This award was just the latest in a trend of successes for the city against TB. This year, the city reported that it had managed to secure an 80% cure rate for smear patients, the best of any metro in South Africa.

The City's Infant Mortality Rate has also improved. Across the metro, there has been a decrease from 22, 28 deaths city-wide in 2003 to 20,76 deaths in 2009 per 1000 births.

Housing:

The City of Cape Town has also made great strides in providing housing opportunities to the poor. Under the DA administration, new housing opportunities have doubled per year. Recently received accreditation from the National Government will mean that the City will be even more efficient in providing houses to the poor as the primary service provider.

However, the housing policy has also seen innovations that have allowed for the provision of housing across a range of options. Noteworthy in this regard are the 210 ha of land purchased for the medium term Housing programme at a cost of R154 million. In previous years, under a different administration, no new land had been acquired for housing purposes.

The first phase of the Community Residential Unit (C RU) Upgrade Programme, which refurbishes rental units in townships, will benefit 7775 families over the next 5 years. It will cost an estimated R900 million. This is part of the City's Informal Settlement Upgrade Strategy which is part of the broader approach of providing services and living environments to informal settlements.

Since 2006, the City has done much to improve the housing of poor people and those who live in informal settlements. As of April 2011, these achievements have included:

  • Informal settlements master plan: 227 informal settlements with little or no basic services have been brought up to the nationally prescribed standard since 2006.
  • CRU upgrade: Ri ,2 billion is being spent on 11 projects, namely Scottsdene, Scottsville Houses, Uitsig Houses, Woodlands Flats, Connaught Estate Flats, Manenberg Flats, Kewtown. Hanover Park, Ottery, The Range and Heideveld.
  • Land restitution: A number of claims have been settled whereby council has resolved to transfer parcels of land to the claimants, namely in Constantia. Rondebosch East. Richmond Park, Wingfield and Tramway Park in Sea Point.

Khayelitsha:

The policy initiatives undertaken by the City of Cape Town, both by itself and with other partners including the national and provincial governments, have had a direct affect on the lives of people living in poor communities. Khayelitsha, one of the largest population densities in the metro, provides an excellent case-study of the impact the City's dedication to the provision of services and investment in poor communities has had on ordinary peoples' lives.

Perhaps one of the greatest interventions of the City in Khayelitsha has been through the Urban Renewal Programme (URP). In conjunction with its partners in the National Government, the local community and the private sector, the City has acted as the major service provider for the strategy of urban improvement in Khayelitsha.

This strategy has focused on a number of projects with a view towards urban improvement. They include:

  • The Khayelisha Central Business District (CBD). in partnership with the National Government, which is now mostly completed and has had a budget of R600 million, and will provide a business and community centre for the people of Khayelitsha.
  • The Khayelitsha Rail Extension Project, in partnership with the National Government, which is now completed and had a budget of approximately R430 million. The project extended the existing railway line from Khayelitsha station to Chris Hani station in Makhaza by 4,2 km. This extension was a project between the City and the South African Railway Commuter Corporation (SARCC).
  • The Housing Development Project, in partnership with the National Government, which has had a budget of approximately R41 5 million. This has been a key focus of the housing policy and the informal Settlement Master Plan and has provided for the upgrade of existing informal settlement areas.
  • The development of the Kuyasa Public Transport Interchange, in partnership with the National Government, which has commenced with an estimated budget of P310 million. This project is primarily to provide public transport to the people of Khayelitsha.
  • The Khayelitsha District Hospital, being built by the Western Cape Provincial Government in partnership with the City, with an estimated budget of R500 million. This hospital will provide between 230 and 300 new hospital beds for the community.

Apart from the URP, the City of Cape Town, in conjunction with its partners in the SAPS, metro police, community and foreign governments and donors, has made the people of Khayelitsha safer through the Violence Prevention through Urban Upgrading (VPUU) Programme.

This last programme has perhaps been one of the city's most lasting legacies. This programme is designed to reduce crime by improving the overall environment in a community. This is done with better infrastructure, including safe walkways and area lighting, introducing area patrols and creating partnerships with community and other organizations to improve access to services. These organizations include the SAPS, neighbourhood watches, metro police and community leaders.

With international funding, the city has already invested R50 million in this project in Harare. Khayelitsha, and its most recent introductions in Kuyasa and Site C in Khayelitsha.

Some of the elements delivered in Harare. in Khayelitsha. include:

  • A rape crisis office, which has resulted in 70% of rape survivors laying formal charges with SAPS. This is significant as a large proportion of rapes are usually not reported.
  • VPUU has also partnered with UWC and set up a law clinic / free legal aid at the Khayelitsha Court.
  • Community patrols have been set up and coordinated via the CPFs with 150 patrols active, including on weekends
  • As a result of the VPUU interventions there has been a reduction in murder and other contact crimes
  • To date within Harare, Khayelitsha, approximately R50 million has been invested in the following types of infrastructure with a view creating a safe environment:

1. Safe and well-lit pedestrian walkways and cycle routes
2. Speed humps and traffic calming at schools
3. Community buildings
4. Formal and informal sports facilities
5. Informal trader infrastructure

Conclusion:

South African cities face multiple challenges because of the divisions of our past that gave rise to massive inequalities and spatial planning that divided people in myriad ways. It has been the challenge of government in the democratic era to address these problems and the poverty that they have engendered.

The DA made service delivery to the poor one of the central platforms of its election campaign in 2006 and its strategy of government for the 5 years following that.

Building on our foundation of good and efficient government for all, our tenure in Cape Town since 2006 has changed peoples' lives, especially those of the poor, for the better.

Issued by the Democratic Alliance, April 5 2011

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