Date: 13/04/2010
Source: The Democratic Alliance
Title: DA: Bosman: Speech by DA Member of Parliament, on the Agriculture budget vote, National Assembly

Honorable Chairman, Hon Minister, Hon Members of the House.

Honorable Minister in last year's budget speech I expressed the view that I sincerely hope that under your leadership agriculture will at last get the necessary attention it needed to again be recognised for the important role it plays in providing food and fiber for the nation, creating job opportunities and playing an important role in the economy of the country.

Die Staat, en dus u en u departement, speel ‘n belangrike rol in die sektor om suksesvolle ontwikkeling en mededingendheid te verseker. die skep van infrastruktuur en diensverskaffing om koste-effektiwiteit te verseker, navorsing- en regulatoriese ondersteuning om volhoubaarheid, mededingendheid en voldoening aan omgewing en verbruikers vereistes te verseker, maar bowenal moet ‘n beleidsbedeling vertroue inboesem wat rolspelers sal aanmoedig om Suid-Afrika as ‘n voorkeur bestemming vir investering te beskou.

Dit is met teleurstelling dat die landbou weereens nie deur die begroting as van uiterste belang vir die land se ekonomiese groei en stabiliteit uitgesonder was nie - the total appropriation to the Agriculture Forestry and Fisheries (AFF) sector amounts only to R3,658 billion. out of the total governmental budget of R 907 billion, a mere 0.4 % and far below the agreed 10 % of the African Union Maputo Declaration signed by South Africa a few years ago.

The Agricultural sector is also not sharing in the R 3.6 billion allocated to the Dept. of Trade and Industry for industrial policy interventions in line with the new Industrial Policy Action Plan simply because agriculture is left out of this plan and therefore not enjoying the benefits available to the labour intensive industries in moving on the new growth path indicated by the Minister of Finance.

Honorable Minister, the Democratic Alliance envisages and will work towards a profitable and sustainable agricultural sector in South Africa. Reality is that the recent global economic downturn is clearly beginning to show its impact on the agricultural sector. Farmers find it increasingly difficult to maintain profit margins as a result of high production costs and low commodity prices, resulting in a decline in nett farm income, cash flow, and again a rise in farm debt.

The DA believes that the following is critical for food security and that you as the responsible Minister should urgently give attention to the following issues:

Service delivery by the Department AFF:

From the budget it became clear that the current human resources, ICT capacity and budget allocation is not adequate to deliver the required level of management and services and the units that must render the support, are not on the required operational level and not adequately capacitated to render the required services.

I noticed, Minister that after a year in office, structures in the Department are still not in place - you are still operating with an acting Director General (DG) and acting Deputy Directors as well as many vacancies throughout the department. In short I believe that the Department is still dysfunctional as attention and feedback on important issues are not forthcoming resulting in the sector losing millions of Rands in export earnings and investment opportunities. My advice to you Minister is to implement a turnaround strategy as a matter of urgency.

Research & Development:

The mandate of the Agricultural Research Council (ARC) is to conduct agricultural related research and Technology transfer in order to promote agriculture production and ensure food security.

Taking in account the importance of research for the sector, it became clear that the ARC is grossly underfunded and that many posts are currently vacant. About 90 percent of the Parliament Budget is spent on salaries leaving very little for executing its research mandate.

It is estimated that about R 300 million is needed annually to help address the personnel and other constraints.

A further problem to be corrected is the fact that the agricultural research facilities are fragmented into Provincial Research Institutes under the control of Provincial Governments. They are mostly dysfunctional with scientists leaving the Institutes; while the ARC has no jurisdiction over the Institutions or the research they are allocated.

Onderstepoort Biological Products is rendering a world class service to the livestock industry but have to survive without any budgetary support from Government. The ageing buildings and research facilities needed a financial influx of between R 500 and R 800 million. The vital role that Onderstepoort plays has just been illustrated by the outbreak of Rift Valley Fever in the country, although the negligence was mostly on the part of the National and Provincial Departments of Veterinary Services. Again Minister, it sounds a warning of failure on your part to control the outbreak effectively.

The Sable import from Zambia:

The Directorates of Food Safety and Veterinary Services manage animal diseases and assists with negotiating protocols for importing and exporting animals and animal products to and from South Africa.

From a written question to you Minister, you admitted that as part of a bilateral agreement with Zambia, you intend to import Sable Antelope from Zambia, a country which is endemic infested with Foot and Mouth Disease (FMD).

The Democratic Alliance is opposed to this importation as this case is not only about the unnecessary importation of Sable from Zambia, but certainly about the necessity to meticulously implement existing national and international regulations in order to protect the local livestock industry's export and disease free status. Import permits must therefore be handled and issued with the utmost care and in compliance with legislation regulating it.

South Africa has, in terms of OIE regulations, a FMD free status, and such an import has the potential to jeopardize SA's status resulting in the closure of export of meat and other products to the EU and other importing countries, will have disastrous financial consequences to the farmers and the industry at large.

It has come to the DA's notice that the head of the National Directorate of Veterinary Services, Dr. Maja, as well as a number of senior staff members in the Directorate of Veterinary Services and Food Safety and Quality Control have either been dismissed or removed from their posts, apparently because you, Minister were not satisfied that they were opposed to the issuing of the necessary permits for the importation of the Zambian Sable.

This Minister, simply cannot be a coincidence and you need to explain today, firstly, why these people have been removed from their posts and secondly whether you have an interest, financially or otherwise, in the importation of the Zambian Sable.

Nationalisation of Farm Land:

As a result of Governments continuous confrontational stance to commercial agriculture, we have seen a huge disinvestment and a decline in employment, as well as an exodus of producers from this important sector to other countries in Africa.

The threats issued to South African farmers by Minister Nkwinti on an eNews programme, that they would be held responsible for a worse than Zimbabwe like situation if not working in support of transforming the land to historical disadvantaged people by nationalising it, is totally uncalled for and misplaced.

The DA's view is that nationalisation equals expropriation without compensation and would result in a demise of the cornerstone of the economy, resulting in total disruption of food production and disinvestment from the sector.

The further statement by Minister Nkwinti that the transfer of the land to small-scale emerging farmers would not threaten food security is contrary to his own admittance in Parliament that 90% of transformed land failed to maintain production and in most cases is not producing anything at all.

Ministers should stop making double talk statements to the detriment of the country? Food security is of utmost importance for continued growth of the economy and job creation in South Africa.

The Democratic Alliance would advise that:

Government should overhaul the failure of their land reform programs by ensuring that the new land beneficiaries have adequate post settlement financial and other support. People need to be identified with an interest in farming, they need to be trained and have proper mentorship programs and partnership agreements with former land owners in place, to ensure production to be maintained.
The Department‘s Extension Services have completely collapsed, resulting in the failures of the land transferred.
I believe that the extension services should be strengthened by commodity based mentorships through which great successes have been achieved. I am therefore pleased that the Department is signing agreements with commodity organisations in this regard.
Daar is ‘n behoefte aan ‘n landbouhandelsbeleid wat beter na Suid-Afrika se belange sal omsien: ‘n beleid wat ‘n balans moet handhaaf tussen enersyds die voedselbekostigbaarheids vraagstuk, teenoor die meriete daarvan, om die effek van onregverdige regerings gesubsidieerde invoermededinging met toepaslike invoertariewe te neutraliseer. WHO beleidsriglyne hiervoor bestaan reeds geruime tyd, maar dit word nie toegepas nie. Deur tariewe nié toe te staan nie, benadeel die regering uitbreiding van plaaslike produksie wat sou kon bydra tot verbeterde voedselsekerheid, werkskepping, landelike ontwikkeling en selfs uitvoere. Uit ervaring blyk dit in elk geval dat voedselinvoere nie laer voedselpryse tot gevolg het nie. Minister,huidig wag die koringprodusente steeds dringend op die uitkoms van 'n tarief aansoek by ITAC.

Landelike Veiligheid en Opruiende politieke uitsprake:

The fact that Min Sexwale is blaming the farmers for the millions of people living in more than 2600 squatter camps around the country because "many farmers chased millions of black people from their farms" is completely misplaced and is showing his ignorance of the facts.

Deputy President Kgalema Motlanthe has recently alleged that farmers "exploit foreign nationals by reducing them to cheap labour" resulting in farmers being killed out of anger and revenge. This statement is profoundly misguided and ignores the facts surrounding this sensitive issue.

The facts are that more than 3000 farmers have been murdered since 1990 - a trend that is still continuing and escalating. Very few, if any, of these murders were the result of foreigners employed on farms, instead there is a strong case to be made that a significant number are the consequence of inflammatory speech by political leaders, including Julius Malema stubbornly continuing to sing the "Kill the farmer, Kill the Boer" song.

Certainly a great many are the consequence of nothing more than inflamed hatred, as the gruesome circumstances surrounding many farm attacks attests to, also recently the unnecessary brutal murder of Mr. Eugene Terreblanche. This incident and the circumstances surrounding it, is harming internal reconciliation as well as the image of the country internationally.

In closure, Hon. Minister, the Democratic Alliance looks forward towards a more constructive relationship with the you, and your department in order to take agricultural development, food security and our country forward.

I thank you.