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Viewing cable 09CAPETOWN201, DEMOCRATIC ALLIANCE LAUNCHES NEW HOUSING POLICY

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Reference ID Created Released Classification Origin
09CAPETOWN201 2009-09-09 16:10 2011-08-24 01:00 UNCLASSIFIED Consulate Cape Town
VZCZCXRO1644
PP RUEHDU RUEHJO
DE RUEHTN #0201 2521610
ZNR UUUUU ZZH
P 091610Z SEP 09
FM AMCONSUL CAPE TOWN
TO RUEHC/SECSTATE WASHDC PRIORITY 3197
INFO RUEHSA/AMEMBASSY PRETORIA 6509
RUEHJO/AMCONSUL JOHANNESBURG 2177
RUEHDU/AMCONSUL DURBAN 3319
UNCLAS CAPE TOWN 000201 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM SF
SUBJECT: DEMOCRATIC ALLIANCE LAUNCHES NEW HOUSING POLICY 
1. (U) On September 8, Poloff attended the launch of the Democratic 
Alliance's (DA) new national housing policy. Party leader and 
Premier of the Western Cape, Helen Zille, DA Shadow Minister for 
 
Human Settlements, Butch Steyn and DA Deputy Shadow Minister for 
Human Settlements, Archibold Figlan presented the plan at the DA's 
Parliamentary offices in Cape Town.  Premier Zille was quick to 
point out that this housing plan is what the DA intends to do "when" 
the DA wins the national election.  Zille also stated, "in all my 
years in government nothing is more complex than formulating housing 
policy."  Zille also said she prefers spreading limited resources to 
a wide group of beneficiaries, and "would rather see a lot of people 
get a little than a few people get a lot." 
 
2. (U)  The DA outlined the current housing crises saying that more 
than seven million South Africans live in desperate circumstances in 
shacks, backyards, derelict buildings or on the streets.  Zille 
highlighted the failures of government to provide adequate housing 
for its citizens and said the reality is that the ANC cannot meet 
this need without empowering people and communities to make key 
decisions on housing for themselves.  She stressed that formal 
housing remains a core component of the DA housing policy, but 
rather than offering one lump sum subsidy, the DA will introduce 
three possible subsidy vouchers which will allow people to choose 
the alternative which most closely suits their personal 
circumstances.  The three options the DA proposes are: 1) a plot of 
land with installed basic services, 2) a plot of land with a state 
provided house already built, or 3) a rental subsidy. 
 
3. (U) The DA also laid out its plan for inclusionary housing zones 
as part of its aim to increase opportunities for the poor. Around 
the world well-conceived inclusionary housing zones have been shown 
to create more integrated neighbourhoods without negatively 
affecting property values.  On the question of integrated housing 
projects, Steyn said that it made no sense to place low-cost housing 
alongside million rand properties. He added that the DA was not 
opposed to integrated housing, but that a proper consultation 
process was needed before integration could take place. He said that 
no one benefits from a sudden devaluation of property due to low 
cost housing moving in to the area. He stated that the DA found 
there has been very little consultation with host communities 
leading to ill feelings and distrust among the existing neighborhood 
and the newcomers. Steyn reiterated that the government could not 
meet its housing obligations unless it empowered its citizens to 
make their own decisions regarding which housing option is best 
suited for them. 
 
4. (U) Although most of the presentation was geared towards the DA's 
national housing policy, Zille did give a few examples of housing 
problems in the Western Cape.  She said there are currently 250 
informal settlements on unsecured land as a result of land invasion 
in the Western Cape.  The cost of servicing this land would be 30 
billion rand, which is more than the province can afford.  As an 
example, the city of Cape Town's budget is only 3 billion rand per 
year.  Zille will be meeting with President Zuma on September 16 to 
discuss service delivery to the Western Cape.