Issued by Ministry of Agriculture and Land Affairs
5 April 2001
Chairperson, Honourable Members, Fellow South Africans,
As we meet here today, the ANC Youth League is meeting in Mangaung, Bloemfontein - the historic birthplace of the African National Congress - to chart the way forward and re-define their role in building our democracy. Among the issues being deliberated upon at that gathering is the role of the youth in agricultural development.
As a Ministry we are heartened by this focus as it reflects a continuation of engagement on strengthening youth participation in the agricultural sector. This indicates the maturity by our youth of understanding the importance of food security. The decisions taken at this conference will have a major bearing on policy and planning for food security in the future. It is our hope that other youth political formations and civil society organisations will indeed follow this good example.
The commitment of the ANC led government to an equitable and sustainable land dispensation is what we as a ministry have to fulfil in implementation of policy. It is however a critical challenges to acknowledge that our land reform policy addresses both social justice requirements in relation to asset allocation and compensation, as well as giving an impetus to meaningful economic development of our people through participation in the agricultural economy. This approach is clearly demonstrated in the Government's Programme of Action for the 2001 budget year.
In this context, the Ministry for Agriculture and Land Affairs has been assigned the strategic role of facilitating the achievement of the overarching government objectives of equitable access to land, land redistribution, security of tenure for the landless, sustained food security, maximisation of the contribution of agriculture to the economy, and ensuring the nurturing and wise use of our natural resources.
In order to achieve this, the Ministry through its two departments will spend the current budgetary resources to continue to focus on accelerated land delivery for quality human settlement and economic use, as well as to support the economic growth and the deracialisation of the agricultural sector. A second key thrust will be to act in such a manner as to actively contribute to Poverty Eradication, Rural Development and Urban Renewal.
Intergovernmental relations and civil society participation in this implementation is therefore critical and important.
As part of social mobilisation, the Ministry has been engaged in discussions with farmer's organisations, commodity groups and private companies, in order to build consensus on the critical actions for the country, in the agricultural sector. These discussions have led to an agreement in the Presidential Working Group on developing an agricultural sector strategy. This process will clarify individual and collective responsibility in implementation of the strategy, and determine the necessary level of investment required for the sector.
I would like to acknowledge input into this dialogue by NAFU, Agri SA, Grain South Africa, Capespan and other commodity organisations.
Within the land arena, we have undertaken consultation with the traditional leaders on the future of land administration in communal areas. This consultation has been necessary and will continue to be until we can find a balance that will accommodate the various needs for land use and development.
The Ministerial Land Indaba held last year, has in part built consensus around the various products of land reform, which will address human settlement, tenure reform and agricultural development. There was also acknowledgement that there is a need for continuous dialogue with the land NGOs in order to find a common ground around which we can work to address the needs of vulnerable communities who lack security of tenure. Clearly the tensions around access to land and for what purpose it must be used need to be managed through dialogue, particularly with those who are direct beneficiaries and also with local government representatives and the broader communities.
At a political level we have continued interactions through Minmec with the Provincial MECs to find a way in which we can co-ordinate our activities and support each other, in line with our co-operate governance system. Our understanding as this political leadership is that while we have concurrent powers and direct responsibilities for implementation it remains critical that we manage the agricultural sector as one system.
This collaboration has enabled us to monitor the implementation of our priorities, which were agreed upon in 1999. The way in which we have dealt with the outbreak of the Foot and Mouth Disease in KwaZulu-Natal, Mpumalanga and Northern Province is a lesson worth sharing with everyone and demonstrates the value of co-operative governance.
All the MECs and their officials were ready to support and in actual fact gave their personnel from the veterinary services to the command centre particularly in KZN, Mpumalanga and the Northern Province.
I must say that myself, the Deputy Minister and Cabinet were heartened by this kind of solidarity, which clearly demonstrated our commitment to our country, as a nation. I am confident that all of us seated here indeed would like to give praise to all the MECs and their staff for the way in which they have made us proud as a nation.
So it is it is true that co-operative government can indeed work. Clearly our financial resources at the national level should support the work that is done by the Provinces in three ways.
Firstly, in order to keep agriculture as a national system, norms and standards should be set and monitored. Secondly, it is the interface with international organisations in order to find support for the work that we perform and also the opening of trade markets out of our borders. Thirdly, where there are programmes that have a national character, a single financial mobilising strategy should be used. We can all agree that the success of Land Care as a programme is an example of this third area of spending national funds.
It is in this context that programmes in the budget of both departments of land and agriculture reflects in Votes - 24 and 28 will indicate where our resources will be allocated. Central to this, however, is ensuring that work continues to review, improve and expand on the scope of government programmes necessary to ensure an improved quality of life for all in South Africa.
Deputy Chairperson, Honourable Members, you will recall that last year, in addition to outlining our programme for land reform, we highlighted a number of areas where we proposed new programmes as well as policy changes.
We had identified the lack of a clear link between land delivery and development, as one of the major shortcomings of previous land reform policies. We have remedied that anomaly with the introduction of the Integrated Land Reform for Agricultural Development Programme (LRAD).
Land Reform for Agricultural Development Programme
The LRAD is essentially a programme of farmer settlement through land reform. Through the programme, the government through the Department of Land Affairs grant on a sliding scale would assist beneficiaries ranging from potential small-scale producers, through medium-scale farmers, to large-scale farmers.
It is acknowledged that these entrepreneurs will also make an own contribution. The Departments are finalising an agreement whereby the Land Bank and possibly several commercial banks will assist with regard to the management of some of the disbursement of project funds as well as the provision of top up loans for the beneficiaries.
We are proud to announce that the first phase in our implementation will be the disposal of agricultural state land in Port St Johns in the Eastern Cape. The proposed disposal will ensure that successful farmers will acquire land with title and the Department of Agriculture in the Eastern Cape will give extension support. For the year 2001, we intend to dispose of 669 000 state land nationally.
The strategy for acquisition through the land and agricultural development programme will be undertaken though targeting available land preferable in the areas where there is high potential. Through working with commodity organisations such as Capespan, Grain South Africa, Wool Growers Association we will be able to support in the implementation of services.
Furthermore, a large district-based land reform implementation project to which the DLA has committed R15 million is currently underway in the area administered by the Amatola District Municipality in the Eastern Cape. This is aimed to strengthen local government structures in the implementation phase.
The number of approved projects in the past year within the land redistribution programme has indicated growth as well as change quality which seeks to address the needs of the various beneficiaries. It is however, worth noting that some of these projects date back 97/98 financial year. The reason for this was the delay, which arose in the reviewing of all these projects in order to ensure their sustainability.
One of the difficult challenges that we still have to confront however is the time lag between approval and actual spending. Honourable members will realise when they look at the financial results, that the figures will indicate under- spending. This is because of the accounting system, which only records amounts that have been transferred. Whereas in effect approved projects and committed funds are not reflected.
The Director General and the Chief financial officer are working at a system that seek to shorted this time line which will help us to correct this anomaly in the coming year.
The tenure reform programme is another high priority area, especially in the light of the challenge of addressing the issue of tenure insecurity in communal areas within the context of the Integrated Sustainable Rural Development Strategy (ISRDS).
Some significant progress in developing policies for land administration and tenure reform in communal areas is being realised and legislative amendments are also being effected to allow for more effective implementation.
Existing laws affecting farm dwellers such as the Extension of Security of Tenure Act, 62 of 1997 (commonly known as ESTA) and the Labour Tenants Act, 3 of 1996 are being consolidated. Furthermore, a National Conference on Land Tenure Reform in Communal Areas and Land Rights is scheduled to be held in Durban during the third quarter of this year.
Within the context of the ISRDS, the DLA will in its Redistribution Programme target vulnerable groups such as farm workers and labour tenants for support through grants for settlement and productive purposes.
In order to ensure that these beneficiary groups are also brought into the framework of developmental land reform, the LRAD grant and project structure will also be used in respect of these groups. The DLA is also working closely with the NDA and the Department of Housing, around a programme for the resettlement of these beneficiary groups in agri-villages and to assist with the acquisition of land to support urban renewal initiatives.
Restitution of land rights
The Restitution Programme has in recent months been characterised by a phenomenal increase in the number of settled claims. This progress has been achieved as the result of the change from a purely legalistic to an administrative approach effected in 1999.
Out of 67 531 claims lodged by the cut-off date of 31 December 1998, only 41 claims had been settled by June 1999. By March 2000, this figure had risen to 3 916 and by the end of January 2001 a total of 8 289 claims had been settled.
Currently, i.e. as of 22 March this year, the number of settled restitution claims stands at 12 093. This amounts to 18 per cent of the total claims lodged. The provincial breakdown of settled claims is as follows:
Eastern Cape: 2898
Free State: 405
Gauteng: 3382
KZN: 419
Mpumalanga: 2
North West: 388
Northern Cape - 409
Northern Province - 330
Western Cape - 3860
This good trend of delivery in restitution is set to continue, and in fact accelerate, as more claims are on the verge of finalisation. This means that if this trend continues, the programme will be wound down in the near future.
The process of validating all claims in the books of the Land Claims Commission, currently underway, and which is to be completed in December this year, will also give a good indication of the size of the remainder of our task in restitution.
So far this process has resulted in a total of 220 claims being rejected. This is an important exercise that will result in more clarity as regards the actual number and location of valid restitution claims, in order to facilitate investment in those portions of land that are found to be unencumbered by claims.
Expenditure trends on the Restitution Programme also show a marked increase, with R198 million having been spent in the 2000/2001 financial year. During the entire period of implementation since 1995, R182, 3 million has been spent on land restoration and R260, 6 million on financial compensation, which gives a total of R464, 7 million.
On another positive note Commissioners have been appointed to all offices of the commission including the Mpumalanga and Gauteng/North West Provinces.
It is significant to note that, in compliance with our injunction as expressed in the policy directions we gave in February 2000, there has been a meaningful increase in the number of rural claims involving large numbers of people currently living under conditions of poverty.
Also significant in the same vein, is the fact that a considerable proportion of this land is situated in areas with high agricultural potential.
Accordingly, the Commission on Restitution of Land Rights, the Department of Land Affairs and the National Department of Agriculture are under instruction to ensure that the necessary process of providing infrastructure, support services, and training is implemented timeously and effectively.
Through the landmark Chata settlement made in Keiskamahoek in the Eastern Cape in October last year, the Restitution Programme now stands poised to address the painful legacy of forced removal that took place within the context of the so-called "Betterment" policy that was implemented in the former native reserves and bantustans.
Spatial Planning and Information
Shifting to spatial planning and information, Honourable Members will agree that for some time now, spatial planning has not been as developed as it should be. As we all know, development planning becomes a very difficult and imprecise undertaking where no clear spatial plans are in place. We aim to change that as from the 2001/2002 financial year.
Since the spatial planning function is located within the DLA, this Department will implement an action plan that will begin with accelerating the process of finalising the development of relevant legislation, as this is critical for the support of all development initiatives of all spheres of government.
The DLA took up a daunting task of reviewing the country's spatial planning legislation, with the view of making our planning system an instrument to achieving more integrated development.
Most importantly, spatial planning needs to be effectively co-ordinated within the various spheres of government. Local government is the most important sphere in this regard. The DLA is thus working closely with the Department of Provincial and Local Government and the two departments have established a task team to look into ways in which the planning work can be effectively co-ordinated within the context of co-operative government.
Surveys and Mapping in support of the Integrated Rural Development Strategy has placed greater focus on the provision of more up-to-date maps and aerial photography in the rural areas, as well as the provision of a new precise positioning system, based on satellite technology, over the whole of South Africa
Honourable members, it is important to emphasise that to realise the increased productivity, it is imperative that all the land initiatives be linked with agricultural development.
Agricultural Sector
The transformation process of the Agricultural Sector has moved to higher platform with the decision of Cabinet to identify Agriculture as being a sector "That requires special attention because of its potential to contribute specially to the objectives of higher economic growth"
Gross farm income from all agricultural products amounted to R43 381 million for the year that ended on 31 December 2000 which is 2,9 % lower than the previous year. Of this the relative contribution of the different sub sector was as follows: - 44% from the livestock sector, 29,4 % from the field crops and the horticultural sector contributed 26,2 %.
Increases in income were observed largely in the animal products [8,3%] and a slight increase in field crops [0,5%]. The horticultural sector experienced a decrease in income of almost 2,7 %.
Major issues of for concern include the fact that the trend seems to be that the prices that farmers are paying for their inputs are rising more rapidly than the prices the farmers are receiving for their goods.
Based on the experience in terms of developing and implementing policy on land reform and agricultural transformation since 1994 and taking into account the complexity of the challenge to deracialise the agricultural sector through amongst others land reform whilst ensuring economic growth, the need for increased competitiveness and productivity - the decision to focus on agriculture as one of the four targeted growth sectors in the integrated economic growth framework of government is demonstration of a firm step of progress.
It is within this context and the current trends in profitability that resulted in the re-introduction of the diesel fuel rebate, albeit in the face of global trends in oil prices, as a first step in confronting the challenge of reducing the cost of inputs in agriculture.
Furthermore we have embarked on a very comprehensive process to ensure that the complex but critical set of issues that affect agricultural development are addressed. The critical areas include:
The Department of Agriculture through the six programmes will implement the strategic objectives of the attainment of national and household food security, ensuring risk management through agricultural disaster management - [insurance scheme]; ensuring quality assurance; food safety and ensuring national plant and animal health.
I would now like to briefly reflect on some of the activities, which have been budged for.
Agricultural Support and Development
One of the great events of the past year was the Female Farmer of the Year Competition, with the theme "A millennium free of hunger-women's role in promoting food security".
The aim of the competition, which is held annually over the past three years, is to raise the profile of female farmers and to recognise their role in feeding the nation and building the economy.
This year we are happy to announce a new programme partner in this venture, namely South African Breweries, who will bring to the table the experience and capacity that supported the Women in Rural Areas Programme. It follows therefore that when the event is held this year, the establishment of the Association of Business Women in Agriculture will accompany it.
Agricultural Production
The outbreak of foot-and-mouth disease during the latter half of the year posed a big problem with serious implications for the export of meat. The matter has, however, been dealt with successfully in the areas where the disease occurred.
These events have led the Department to embark upon the Animal Heath System Reform Programme in this financial year. The first draft document of this programme is under consideration by the Provinces now.
The Animal Health Reform Programme will in the long term ensure that every magisterial district has access to primary animal health care.
Large sections of the veterinary fence bordering the Kruger Park along the southern bank of the Crocodile River from Kaapmuiden to Komatipoort were damaged during floods in February. The Department of Agriculture regularly makes available resources to repair the fence, of which the main purpose is to prevent the spread of foot-and-mouth disease, tuberculosis and other diseases from the park.
In the light of increasing investments by the tourism sector, in wild life farming, the Department in collaboration with the Department of Environmental Affairs and Tourism, National Parks Board will look at sustainable systems for fence management.
Agricultural Trade and Economic Policy Analysis
The establishment of a new crop estimates committee, in response to unacceptable variability in the crop estimates of 1999, resulted in an immediate improvement in the quality of data.
The 2000 annual farm survey was undertaken and information available on the emerging farming sector will be made available for the first time this year.
Export quotas for South African entrepreneurs under the SA/EU agreement were allocated timeously and utilisation of quotas is monitored on an ongoing basis.
Outstanding areas of the agreement remain the finalisation of the Wine and Spirits Agreements
Attention is now being given to capacity constraints with regard to guaranteeing the health status and quality of South African products. This arose out of specific concerns in the dairy industry and more recently the growth of risks in the red meat industry in Europe.
This capacity to manage our regulatory standards is crucial for the trade, but also for ensuring the safety of food on the domestic market.
In collaboration with the National Agricultural Marketing Council a facilitating committee has now been established for new initiatives that are required to open up access to markets. In the course of this financial year we expect to consider options for market opportunity in the grain and the horticultural sector.
Collaboration and finance were secured from the FAO in developing marketing skills at provincial level. The training of officials will be completed this year and transfer of skills to farmers accelerated.
The Marketing Act will thus be reviewed in the course of this year so that we have a clear definition of the desired state and define the alternative measures necessary to make our industries competitive nationally, regionally and globally.
Sustainable Resources Use and Management
In honouring its responsibility to ensure that the necessary control measures are in place to protect the country's agricultural natural resources, the Department of Agriculture has implemented and expanded the LandCare programme, to encompass soil, water and bush care, and introduce a greater emphasis on income generation.
Approximately 800 ha potential agricultural land were rehabilitated through Soil Care projects in the Eastern Cape, Mpumalanga and KwaZulu-Natal, whereby approximately 1 786 jobs were created.
Altogether 25 LandCare projects were implemented in the North West Province, resulting in the rehabilitation of about 10 000 ha of agricultural land and the creation of 640 temporary jobs. Junior LandCare projects were established in various provincial departments. In this financial year a total of R25 million is earmarked for expansion of the LandCare Programme.
A number of databases were incorporated in AGIS (Agricultural Geographic Information System) in order to enhance the scope and quality of the information system. AGIS will also be used as a tool for information dissemination and decision support mechanism in the Integrated Rural Development Strategy.
A total of 1 610 new applications for subdivision of agricultural land and 409 applications for rezoning were dealt with while 1 501 consents were issued.
Agricultural consideration is essentially about awareness and technical information being available to facilitate targeted interventions.
We have now compiled a pamphlet and distributed it to inform and educate the general public about problem plants and their detrimental effect on the natural resources of the country. Control operations involved approximately 249 ha of Nassella and 8 250 ha of Queen of the night infestations. These are declared alien invasive species.
In addition in this year we are working closely with the Departments of Water Affairs and Forestry and Department of Environmental Affairs and Tourism to reorient the Working For Water Programmes to take in a more comprehensive approach to land and water resources management and conservation. Altogether 750 boreholes were drilled successfully to provide water for household purposes and livestock.
Regulations and guidelines for the Genetically Modified Organisms Act, 1997, were finalised and the GMO Council is fully operational. Our implementation experience is serving as a basis for improving on the quality.
Partnerships were established with AVCASA, and Trees for Africa, which have resulted in participation in Edu Plant in linking LandCare to Food Security.
The policy, procedures, norms and standards for transfer and development of a revitalisation plan for the rehabilitation of 103 irrigation schemes in the Northern Province have also been finalised.
In this financial year 11 projects have been identified for attention. This is in addition to the eight areas where work started in previous years. The complexity of funding lasting solutions has necessitated the finalisation of a long-term agreement with an international organisation with world-class experience in irrigation development.
Financial Management
I am proud of the developments in the area of financial management, which has enabled us to meet the control and reporting requirements of the PFMA.
Computerised asset inventories were compiled and updated. LOGIS was implemented at decentralised outside offices. The handling of revenue collection and reporting were streamlined with the books and submission of year-end statements closed timeously.
Work procedures were adjusted, where necessary, according to the new financial framework. Training takes place on an ongoing basis.
The draft Agricultural Debt Management Act (ADMA) has also been finalised and will soon serve before Cabinet.
Inputs for budgetary planning are now compiled within the limits of the Medium-term Expenditure Framework. Reports on the state of expenditure are co-ordinated and the new budget procedures were implemented. Our challenge remains to use the public sector budget resources to leverage other private sector resources in order that we increase the overall level of investment in the agricultural sector.
Financial inspection services performed all audits as approved by the Audit Committee in the financial year and also conducted and approved all ad hoc financial inspections at departmental offices and tried to reduce losses in the Department. The risk management assessment for the operations of the department will be undertaken as of this month in order to identify the areas of potential vulnerability.
Madam Speaker, with all these systems in place, I am confident that both Departments are well prepared for the responsible and judicious implementation of all of our programmes with momentum and accelerated speed.
The consultative process led by the President and also ongoing at the MinMec level, will usher a new form of co-operative governance in terms of working together with provinces, local government and the private sector to advance growth, competitiveness and remove the negative effects of the legacy of the past.
Madam Speaker, we feel honoured to be faced with the challenge of restructuring this sector and we are proud that we are starting to make inroads into job creation, growth and a meaningful contribution to the overall economy.
I would like to thank all my staff, the two DGs, the Deputy Director Generals and all the MECs present here.
I thank you