The new draft Expropriation Bill is better, but is still bad, the Free Market Foundation (FMF) said on Wednesday.

"[The bill]... is better than its 2008 predecessor in one key way; it allows the courts, rather than the state, to decide the compensation payable for expropriated property," South African Institute of Race Relations special research head Anthea Jeffery was quoted as saying by the FMF.

"Although this seems like a major advance, in practice the gain is likely to be negated by other aspects of the bill; in particular, it allows hundreds of organs of state to take ownership and possession of property by simply giving notice to the owner and before any compensation has been paid."

Jeffery was speaking at an FMF media briefing in Johannesburg on Wednesday.

She said the 2008 Expropriation Bill was clearly unconstitutional and tried to prevent courts from deciding the compensation due.

By contrast, the current bill gave the courts the power to decide on "just and equitable" compensation based on market value.

However, it allowed expropriation to take place before the state had shown that all relevant constitutional requirements had been met.

"It fails to recognise that where expropriated property includes a person's home, any eviction requires the express authority of the courts. It also allows the state to take ownership and possession before any compensation has been made," Jeffery said.

"Hence, the option of applying to a court to decide a different measure of compensation is thus likely to benefit only those with deep pockets – the few who, despite the loss of their property to the state, can afford the cost of lengthy litigation with no guarantee of success."

She said the 2013 bill undermined the right of access to court.

The government claimed the bill was needed to speed up land reform and correct historical injustice. However, 92% of successful land claim beneficiaries had opted for cash rather than the return of their land, said Jeffery.

In addition, between 50% and 90% of land reform projects had failed.

"By its own admission, the government has spent billions in taxpayers' money to take hundreds of farms out of production, costing thousands of jobs and billions more in lost revenue. Such pointless waste must stop."

Instead of pushing ahead with the 2013 bill, the government should bring the Expropriation Act of 1975 in line with the Constitution, she said.