1. Comments on FFC Annual Submission for 2006/07

2. BASIC PRINCIPLES The Constitution commits government to take reasonable measures,within its available resources to ensure that all South Africans have access to adequate housing, health care, social welfare and access roads and public transport services

3. BASIC PRINCIPLES Local government is uniquely placed to analyse and understand power dynamics within a community, and ensure that those who tend to be excluded and marginalised can become active and equal participants in community processes and the transformation of the settlements where they live.

4. HEALTH CONDITIONAL GRANTS SALGA support the recommendations of FFC regarding the conditional grants in question Recommendations contained on annexure 82 from previous submissions should be revisited because: –Environmental health services is under funded at the local level and those municipalities with weaker fiscal capacity such as districts continue to be compromise.

5. HEALTH CONDITIONAL GRANT The inclusion of EHS to basic services will compromise the national definition of 'basic services" and may lead also to proposal for inclusion of other services such social welfare.

6. FINANCING SOCIAL WELFARE SERVICES In setting norms and standards for funding of delivery of social welfare services government must take into account the following: –That municipalities have the constitutional power to provide child care facilities, and may provide grants to associations for this purpose in terms of the Child Care Act. –That municipalities currently tend to link the delivery of social welfare services to their own indigent programmes.

7. ASSIGNMENT OF POWER AND FUNCTIONS The powers and functions of local government should be exercised in a way that has a maximum impact on the social development of communities - in particular meeting the basic needs of the poor and on the growth of the economy. As much as SALGA supports recommendations is chapter timeframe should be Set with regard to the finalisation of the framework

8. FUNDING FRAMEWORK FOR HOUSING DELIVERY Recommendations as set out in 3 must clearly indicate that no funding gap should be allowed in any accredited municipalities and government must consider transferring allocated funds in periodic installments which must reflected in DORA of each year. Additional recommendation should be made that the accreditation process should be subject to the procedures for assignment as outlined in Municipal Systems Act

9. Transport funding Issues provided for in recommendation one should be attached timeframes. When developing funding framework for roads government must take into account that schedule 5 (Part B) of the Constitution determines that municipal roads are a functional responsibility of the local government sphere and in this context, consideration will be given to assigning a percentage of the fuel levy to local government.

10. TRANSPORT FUNDING Vehicle licensing function is assigned on agency basis to municipalities in some provinces –the challenge is that provinces are not prepared to adjust the agreements entered into in order to Cater for actual Costs of rendering the service –thus some municipalities are forced to absorb the u~funded portions of actual expenses incurred in rendering this function.

11. THANK YOU