Ladies and gentlemen,

First I want to congratulate the families who are now moving into Newtown. Your common efforts and determination have made this cooperative housing project a success.

Following the abolishment of apartheid, South Africa and Norway started bilateral development co-operation in 1994. We entered into a new phase when a Declaration of Intent on enhanced co-operation and consultation was signed during former President Nelson Mandela's visit to Norway in February last year. We will work together in areas where Norway has specific expertise and experience to offer South Africa. One of these areas is cooperative housing.

After the Second World War there was a dramatic shortage of housing in Norway. Clear policy goals were therefore set.

We had to provide adequate dwellings for the entire population.

We had to make sure that no individuals profited from the housing crisis.

We wanted people to be able to own their own homes.

The solution was cooperative housing. The figures show that this was successful:

In Norway,with a population of 4 million, the cooperative housing sector has more than 570 000 members and more than 270 000 housing units.

When your former Minister for Reconstruction and Development, Mr. Jay Naidoo, visited Oslo in December 1994, he was introduced to the Norwegian cooperative housing model. His visit was followed by a study trip by representatives from the Ministry of Housing and various NGOs to learn more.

Norway was subsequently requested by the South African authorities to help introduce the concept of housing cooperatives in South Africa.

What characterises the Norwegian cooperative housing model? It is based on co-operation between the State Housing Bank and the private sector. The bank provides loans on affordable terms; municipalities provide affordable sites; and the housing cooperatives take care of planning, construction, management and maintenance. The result has been that the average wage earner, and even people in the lower income brackets, have been able to get a decent home.

One of the most important factors for the success of cooperative housing in Norway, has been the strong political support for the concept. The State Housing Bank was established soon after the war, and subsequent governments have made available sufficient long-term funding at below market rates. The municipalities have given housing high priority, and have made sites and services available on affordable terms.

I understand that in South Africa social housing is also high on the political agenda, and that a number of institutions have been established to implement government policies.

I have noted that South African policy-makers are familiar with the concept of cooperative housing and that there is considerable support for it.

I have been informed that this greater awareness of cooperative housing is a result of COPE's efforts to inform the public about the whys and hows of cooperative housing.

I am confident that cooperative housing will play a major part in solving the housing problem in South Africa. I am happy to announce that Norway is contributing an additional 5 million kroner to COPE's bridging fund.

I wish COPE every success in its future efforts. And to the people of Newtown: I wish you many happy years here.