THE DA is extremely alarmed that for the upcoming three financial years the housing budget allocation for the Ugu District will drop by R50 million.
Due to massive urbanisation and population increases in wards 12, 17, 18 and 20 (greater Port Shepstone) this budget cut will have a massive impact on housing provision to the homeless.
Hibiscus Coast Municipality (HCM) is an implementing agent in housing delivery. Thus failures in housing delivery fall on both HCM and the Department of Human Settlements.
It’s clear that the Department of Human Settlements and the HCM do not have a plan to meet the housing challenges in Hibiscus Coast Municipality. The state of housing development at present is deplorable, – DA KZN spokesman, Dr Rishigen Viranna
During the 20 years of the Merlewood housing project, only 69 houses had been handed over. Despite being announced in the premier’s 2014 100 day plan, the Masinenge housing project has still not been completed. Despite waiting for six years, the people of Mkholombe still have not seen the next phase of the Mkholombe housing project.
“In light of the failure of the municipality and the Department of Human Settlements in their ability to effectively deliver on housing development projects, and the proposed housing allocation budget cut which will amplify the housing crisis, it is evident that the ANC-led government is out of touch with the reality of the thousands of people who are desperately in need of a home,” said Dr Viranna.
The DA will thus move for the MEC of Human Settlements to provide a comprehensive report on the stalled housing projects on the Hibiscus Coast.
In response to the drop at Ugu District, the KZN Department of Human Settlements’ spokesman Kiru Naidoo said the department had consistently met its delivery targets with 27 115 units delivered in the past financial year. “At the end of 2015, KZN Human Settlements was allocated a further R306m from unspent funds in other provinces.”
He added that, broadly, budgets are allocated according to population subject to project readiness.”This means approximately seven percent is allocated to Ugu which currently has 22 projects in construction or planning. Last year we spent R379m in Ugu, approximately R100m more than its allocation,” said Mr Naidoo.
He added that Ugu would continue to receive special attention. Cost containment for all government departments would see a drop in the housing budget by R290m.
MEC Ravi Pillay was, however, confident that they would manage this by refocusing on alternative delivery instruments including serviced sites, rental houses and subsidy offers for the gap market of those earning between R3 501 and R15 000 per month.
He also rejected criticisms that the budget cut would negatively affect municipalities, describing this as “petty politicking when the KZN housing delivery record is recognised as the best in the country”.
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