Speaking during debate on the draft legislation, Deputy Agriculture and Land Affairs Minister Dirk du Toit said the land question was at the core of many of South Africa's problems.
He said the Bill represented a new order in land rights.
"Today we bury the heart of apartheid and colonialism, and the new order of land rights can be born," he said.
One of the bill's main objectives is to provide those living on communal land with greater security of tenure.
ACDP MP Cheryllyn Dudley said the draft legislation would begin the positive process of resolving land tenure problems in the former homeland areas.
"Finding solutions to these complex issues presents many challenges, and whether or not the bill provides appropriate solutions only time will tell. However, the urgent necessity for such a bill is obvious to all".
She said the key to transforming the former homelands was private property rights for farmers.
"These areas in fact have the most potential of all land in this country, being the most fertile, and having the highest rainfall in a country with severe water shortages".
Dudley said the traditional leaders had an important role to play, which should not be undermined.
"The ACDP shares the hope of many that this bill will not unnecessarily undermine traditional authority, but will help alleviate poverty and hardship and bring prosperity," she said.
The Democratic Alliance said it welcomed the bill, but wanted to know if government was planning to introduce race classification on title deeds.
DA MP Dan Maluleke called on Land Affairs Minister Thoko Didiza to say if this would be the case.
He questioned why the government would need such information.
"Will it, in the long run, be used to influence national policy, or will it impact on individual land deals by private citizens?" he asked.
United Democratic Movement Chief Whip George Madikiza said the intention behind the bill was noble, but cautioned there was far too much criticism of the measure for Parliament to approve it.
He said the Bill would help almost 15-million people gain access to the formal economy.
"Without property to offer as security, these people remain on the fringes of the economy, unable to access formal sector financing".
"We believe that the process of drafting this legislation should be restarted, with wide public consultation with all the affected stakeholders".
However, despite these concerns, the UDM would support the bill, he said.
Meanwhile, the National Land Committee said in a statement yesterday that the bill heralded the end of democracy for 15 million rural South Africans.
The committee said it was difficult to understand why the bill was being rushed though, when the department had said it could not implement it before 2005.
"The vast majority of the 15-million people who will be affected by the bill still know nothing about it".
The process around the bill had denied rural people the opportunity to debate a law that would directly affect their lives.
The bill will now go to the National Council of Provinces. – Sapa.
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