Minister of Rural Development and Land Reform Budget speech & responses by ANC and DA

Minister of State Security, Mr Gugile Nkwinti gave his Budget Vote Speech on the 26 April 2016.

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INTRODUCTION

The National Development Plan (NDP) views agriculture as critical to employment and food security. It is estimated that agriculture would potentially create a million jobs by 2030. Vision 2030 of the NDP calls for an inclusive rural economy wherein: rural communities should have greater opportunities to participate fully in the economic, social and political life of the country. People should have access to high-quality basic services that enable them to be well nourished, healthy and increasingly skilled. Rural economies will be supported by agriculture, and where possible by mining, tourism, agro-processing achieved through successful land reform, job creation and poverty alleviation. The 2030 vision speaks of the inclusivity and integration of rural areas, through successful land reform, job creation and poverty alleviation, and places agriculture as the driving force behind this vision.

The NDP identifies the following as key catalytic interventions: expansion of irrigated agriculture, supplemented by dry-land production, where feasible. In areas of low economic potential, the NDP speaks of the importance of basic services such as basic education, health care and social security to support the development of human capital.

Agri-Parks will serve as important mechanisms to execute the NDP’s proposed rural development strategy due to their potential for supporting small-scale agricultural production and stimulating agro-processing in rural areas. One core element of this approach is conducting commodity and value-chain analyses and mapping exercises to establish Agri-Parks based on the growth potential of value-adding commodities. As such, each Agri-Park will focus on specific prioritized commodities that have the highest prospect of succeeding in their region. This is directly in line with the NDP’s approach of targeting high value commodities (most of which are labour intensive) to stimulate industrial growth, accompanied by measures that ensure sustainable production on redistributed land and an improved institutional support system.

In this regard, the NDP identifies certain agricultural sub-sectors that have the most potential for development, which are categorized into large labour-intensive industries, smaller labour-intensive industries, and large existing industries with significant value-chain linkages. For instance, small-scale labour intensive agriculture, including macadamia, pecan nut, rooibos tea, olive, fig, cherry and berry industries, are found to have the greatest expansion potential due to the significant market demand for these products. The NDP projects that approximately 80 000 jobs can be created by further developing these particular areas of small-scale agriculture. By providing the necessary inputs, facilities, institutions, market-linkages and partnerships, Agri-Parks can enable producers and rural residents to create new and expand existing enterprises in these industries, which will have positive growth impacts on the rural economy.

Agri-Parks have been identified as one of the key drivers in revitalizing the agriculture and agro-processing value chain. During the course of last year, the Department of Rural Development and Land Reform (the Department) started planning and coordinating the implementation of this programme in all 44 Districts of the country.

This is in line with the pronouncements of his Excellency, President J G Zuma, during his State of the Nation Address, 2015, when he pronounced on the Nine Point Plan to ignite growth and create jobs. One of these catalysts, was identified as the revitalization of agriculture and the agro-processing value chain.

In this regard, the President stated that  “Agriculture is a catalyst for growth and food security. We are working with the private sector to develop an Agricultural Policy Action Plan (APAP) which will bring one million hectares of underutilized land into full production over the next three years. Among key interventions this year, we will promote the establishment agri-parks or co-operatives and clusters in each of the 27 poorest district municipalities to transform rural economies. An initial funding of R2 billion has been made available for the agri-park initiative”.

All 44 district municipalities have since been included in this programme.

THE POLITICAL ECONOMY

South Africa is an open, middle income developing economy. Like most post- colonial economies, it is a commodity-based export economy, with a dependency relationship with its former imperial power, Britain, and its trading partners, especially Western Europe, Canada and North America. This renders it extremely vulnerable to even the slightest disturbance in these countries' economies. Historically, mining and agriculture were the main drivers of the economy. Later on, manufacturing and financial and other services sectors became prominent as well. 

But all these industries and services are situated in what used to be exclusively 'white areas' of the country. Even where raw materials happened to be located in the 'black spots', they were owned and controlled by white monopoly capital, employing black labour recruited from the then exclusively 'black spots' or ethnic homelands. These two contrasting, but mutually dependent 'white/black spots' - the former well developed, wealthy and internationally connected, and the latter underdeveloped, poor and isolated, define the enduring legacy of South Africa's unique variant of colonialism, Colonialism of a Special Type (CST). In its seminal document, The Road to South African Freedom, 1962, the SACP had the following to say in this regard:

The African Reserves show the complete lack of industry, communications, transport and power resources... Non-White South Africa is the colony of White South Africa itself... Real power is in the hands of monopolists who own and control the mines, the banks and finance houses, and most of the farms and major industries... These monopolists are the real power in South Africa. The special type of colonialism in South Africa serves, in the first place, their interests. 

It is this CST legacy which must be fundamentally and radically transformed. Part of what we have to do to reverse this situation is to craft a rural socio-economic infrastructure master plan around the District Agri-Parks. The strategy is the Rural Economy Transformation Model (RETM). THIS WORK HAS BEGUN!

THE MEDIUM TERM STRATEGIC FRAMEWORK (MTSF 2014 - 2019)

The Medium Term Strategic Framework (MTSF 2014 - 2019) emanates from the governing party’s Manifesto (2014 – 2019) and the National Development Plan: Vision 2030 (NDP). It is a medium-term plan of government for the current electoral cycle. The MTSF has 14 Outcomes that must be implemented by Government (2014 – 2019). The Department of Rural Development and Land Reform is responsible for leading Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all. The new financial year marks the second year of implementing the current MTSF.

The following are the six priorities of the MTSF:

1. Improved land administration and spatial planning for integrated development in rural  areas. (DRDLR): The Spatial Planning and Land Use Management Act (SPLUMA).
2. Sustainable land reform (agrarian transformation) (DRDLR): The Rural Economy Transformation Model (RETM).

1. Improved food security.(DAFF/DRDLR): Agricultural Policy Action Plan (APAP)/Strengthening Relative Rights of People Working the Land (50/50 Policy Framework) (SRR).

1. Smallholder farmer development and support (technical, financial, infrastructure) for agrarian transformation.(DAFF/DRDLR): One Household, One Hectare.

1. Increased access to quality basic infrastructure and services,         particularly in education, healthcare and public transport in rural areas. (Various departments lead; DRDLR  supports): The National Development Plan.
2. Growth of sustainable rural enterprises and industries characterised by strong rural urban linkages, increased investment in agro-processing, trade development and access to markets and financial services resulting in rural job creation. (DSE leads DRDLR supports): The National Development Plan.

PRONOUNCEMENTS FROM THE STATE OF THE NATION ADDRESS (2015): THE 9-POINT PLAN

Honourable members, ladies and gentlemen, in his previous State of the Nation Address, that of February 2015, His Excellency, President Zuma, introduced a 9-Point plan to boost economic growth and create jobs. Due to the transversal nature of rural development, almost all these nine points link up with the work of the Department, particularly the one on revitalising agriculture and the agro-processing value chain.

Below, we report on progress on the implementation of the President’s announcements:

PROGRESS ON THE SONA
Pronouncements	Progress
Promote the establishment of Agri-Parks or Cooperatives and clusters in each of the 27 poorest district municipalities to transform rural economies. An initial funding of R2 billion has been made available for the Agri-Park initiative.	q  44 District Municipalities identified as the Agri-hub sites. q  Site analyses  completed; and, Governance structures established in each District. q  Completed 36 district business plans  q  District Agri-Parks Management Councils (DAMCs) established and presented at SPECIAL Minmec in November 2015. q  Agri-parks construction commenced in seven sites (Farmer Production Support Units and Agri-hubs). (Chris Hani, Ngaka Modiri Molema, Nkangala, Cape Winelands, West Rand and Sedibeng District Municipalities). Provincial Project Management Units established at National Office  and in four provinces.
Regulation of Agricultural Land Holdings Bill	The Bill limits the extent of hectares owned by individuals and entities; and, terminates ownership by foreign nationals. Bill has been taken through the Socio-economic Impact Assessments process. It is currently awaiting a pre-certification opinion from the Office of the Chief State Law Advisor. The Bill will be published for 30 days for public comment during May 2016, including the NEDLAC process. Should be submitted to Parliament during June, 2016.
Re-opening the second window of opportunity for the lodgement of land claims.	A total of 143 720 claims have been lodged by 31st March 2016 with 27 696 claims lodged through the mobile lodgement offices.
Strengthening Relative Rights of People Working the Land (50/50 Policy Framework).	q  10 transactions have been finalised, with about 540 beneficiaries, covering 7 642 hectares. q  More than 50 submissions from farmers and organisations have been received thus far.

BUDGET POLICY SPEECH 2015/16: Some Highlights On Performance

(Appendix)

THE POLICIES AND LEGISLATION

The Department has embarked on an extensive programme of fundamental institutional transformation. In this regard, the following policies and draft bills have been developed:

Policy	Bill	Progress
Communal Land Tenure Policy	Communal Land Tenure Bill	Awaiting pre-certification from the Office of the Chief State Law Advisers, whereafter it will be submitted to Cabinet and published for public comment during June 2016 before submission to Parliament in July, 2016.
Electronic Deeds Registration Policy	Electronic Deeds Registration Bill	Approved by Cabinet for public comment. Public comment received. To be submitted to Parliament during May, 2016.

 

In respect of the Policy on Exceptions to the 1913 Cut-off Date to Accommodate the Khoi and San People, Access to Heritage Sites and Historic Land Marks, the Department continues to refine the policy. A task team, consisting of representatives from the National and Provincial Houses of Traditional Leaders, CONTRALESA, the National Khoi and San Council, the National Khoi and San Reference Group, and other relevant Government Departments, is assisting the Department to finalise the policy framework for the programme. The Department is also in the process of establishing a multi-disciplinary, multi-cultural research team that will identify heritage sites and all historical landmarks for all of South Africa’s indigenous peoples that should be considered in the policy.

CHALLENGES AND MITIGATION THEREOF

In the main, the following challenges are being experienced by the Department:

1. Institutional challenges;
2. Limited strategic capacity in the Department; and,
3. Instances of fraud, corruption and/or maladministration.

In respect of institutional challenges faced by the CPAs, trusts and other landholding legal entities, the Department is mitigating this challenge through political interventions and amendments to the Extension of Security of Tenure Act (ESTA) and the Communal Property Associations Act. These Bills aim to, amongst other things, strengthen governance of communal property institutions and to ensure greater accountability of committees to the households. The Department is furthermore providing legal and mediation support for land reform beneficiaries to promote security of tenure through the Land Rights Management Facility (LRMF). In many instances, households resort to Courts for relief as fights and conflicts escalate among beneficiaries.

To better understand the capacity challenges faced by the Department and develop an informed response, I have called for a professional review of the Department’s organisational structure and a skills audit. Initial findings point to a misalignment of both the Department’s structure and its skills base. Furthermore, due to government-wide budget cuts on the compensation of employees, some non-critical posts will not be filled. The Department is currently implementing cost-cutting measures in line with the SONA, and the Budget Speech of the Minister of Finance. The Department will implement the recommendations of the professional review, taking cognisance of the current fiscal environment.

In respect of instances of fraud, corruption and/or maladministration uncovered in various programmes and projects, the Department has established a Panel of Lawyers to conduct pre-disciplinary investigations; and, where cases of fraud, corruption and/or maladministration have been identified, disciplinary actions are taken.

PROGRAMMES AND PRIORITISED CATEGORIES FOR 2016/17

The Department has identified the following social categories for prioritisation in land distribution and redistribution: women, youth, agricultural graduates, military veterans, people with disability, farm dwellers and labour tenants. R140 million will be utilised in this regard in the new financial year.

The implementation of the programme on Strengthening of Relative Rights (SRR) of People Working the Land (50/50 Policy Framework) will be expedited. R500 million has been set aside for this purpose in the new financial year.

The Department is rolling out the “One Household, One Hectare” programme with an aim to eradicate poverty and create a class of black smallholder farmers, producers and agro-manufacturers. It is targeting particularly state-owned and what could at best be described as traditional communal land. The “One Household, One Hectare” initiative will be rolled out and aligned to the Agri-Parks development programme; thus, providing the participant households with a solid outlet for marketing their produce. Initially, each one of the 44 Agri-park Districts will have 5 x One Household One Hectare Sites. This will amount to 220 Sites in the 2016/17 financial year. A minimum of 50 Households will participate in each Site. This will therefore touch the livelihoods of over 10 500 rural households. The department has set aside R100m for the initial year of implementation through its Recapitalization and Development Budget.

We are moving to the next phase of implementation of the Agri-Parks Programme across 44 district municipalities for food production, design and construction of new infrastructure. R2 billion has been set aside for this purpose for the new financial year.

In accelerating the pace of land reform we are allocating land to smallholder farmers and providing protection to vulnerable communities, including farm labourers and people working on farms. In this regard, an amount of R89 million has been allocated for providing legal and mediation support for land reform beneficiaries to promote security of tenure. An amount of R791 million has been set aside in this financial year for land acquisition in line with this objective.

The Department continues with the implementation of SPLUMA by, inter alia, providing support to rural Municipalities. Cabinet has, however, taken a decision to place the management of this Act in the Presidency. Transfer modalities are under way.

The Department will recruit 2 700 NARYSEC and 500 Interns in the new financial year. In respect of the internship programme, an amount of R21.7 million has been allocated and in respect of the NARYSEC programme, an amount of R337 million has been set aside.

BUDGET ALLOCATION 2016/17

MTEF Budget Allocation 2016/17

 

Provincial Breakdown of the Budget Allocation for the current financial year

CONCLUSION

By 2030, South Africa should.

Experience more integrated, vibrant, equitable and sustainable rural-urban (Rurban) communities (rural towns and agri-villages) with viable and bustling markets, small, micro and medium enterprises and industries, employing millions of people, supported and facilitated by requisite logistics, social and economic infrastructure (including research, innovation and information and communication technology), development finance institutions (DFIs) and credit facilities.

I thank you. 

APPENDIX

BUDGET POLICY SPEECH 2015/16: Some Highlights On Performance

Geospatial and Cadastral Services

The following are some of the highlights:

• Research report on the National Spatial Development Framework (NSDF) finalised.
• 164 municipalities supported to implement the Spatial Planning and Land Use Management Act (SPLUMA). (Annexure A)
• Six provinces: Free State, Gauteng, Limpopo, Mpumalanga, North-West and Northern Cape were supported to develop Provincial Spatial Development Frameworks (PSDFs).
• 979 240 deeds and documents were registered.
• 273 maps of the national map series were produced/ reviewed. (Annexure B)

Rural Development

The following are some of the highlights:

• 48 projects were implemented in rural communities to improve production, in support of improved food security (12 759 beneficiaries). (Annexure C)
• 116 socio-economic infrastructure projects were coordinated and facilitated (9 736 households benefited). (Annexure D)
• 31 infrastructure projects were facilitated in 44 districts to support Agri-Parks development. ( Annexure E)
• A National Agri-Parks Advisory Council (NAAC) and District Agri-Parks Managament Councils (DAMCs) in all 44 District Municipalities have been established to facilitate the establishment, management and operations of Agri-Parks.
• 451 projects of the Animal and Veld Management Programme (AVMP) were implemented (2 206 smallholder farmers benefited). (Annexure F)
• 24 projects were implemented in support of the River Valley Catalytic Programme (RVCP) (1 460 households benefited). (Annexure G)
• 216 rural enterprises were supported in rural development initiatives with special focus on 27 District Municipalities (2 943 beneficiaries). (Annexure H)
• 9 664 skills development opportunities provided to support rural development initiatives.
• 3 066 skills development opportunities were provided to NARYSEC youth. (Annexure I)
• 198 Agricultural graduates were deployed in rural projects. (Annexure J)
• 6 132 jobs created.

Restitution

The following are the highlights:

• 615 land claims were settled; and, of these 561 were finalised. A claim is considered as settled when the Minister or the court make an award on behalf of the claimants and is considered as finalised once the land had been transferred to the claimants or all the financial compensations has been paid to the beneficiaries.
• 81 phased projects were approved.
• 2 557 claims, lodged prior to 1998, were researched and are ready for further processing
• An additional two 4x4 Mobile offices were registered and successfully rolled out throughout the country.  This is over and above the four previously reported on. The campaign for the lodgement of new land claims is on a roll!

Land Reform

The following are some of the highlights:

• 240 940 hectares were acquired and allocated.
• 46 District Land Reform Committees (DLRCs) were established and are working.
• 57 farms were acquired in support of the Agri-Parks Programme.
• 408 farms benefitied under the Recapitalisation and Development Programme (The Recap).
• 2 266 jobs were created in land reform projects through the Recap.
• 14 Pro-active Land Acquisition Strategy (PLAS) farms were identified for the incubation and training of agricultural graduates.
• 203 Communal Property Associations (CPAs) were supported to be compliant with legislation.

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Budget Vote: Department of Rural Development and Land Reform SPEECH BY DEPUTY MINISTER SKWATSHA
 
26 April 2016
 
Honourable Speaker, 
Honourable Minister, 
Honourable Members, 
Manene, nani manenekazi, bahlali belizwe lakowethu 
Distinguished Guests,
 
“The gods are cruel, and one of their cruelest acts of omission was that of giving us no hint that in very much less than a quarter of a century all those hundreds of heads of cattle, and sheep and horses belonging to the family would vanish like a morning mist.
“They might have warned us that Englishmen would agree with Dutchmen to make it unlawful for black men to keep cows of their own. The gods could have prepared us gradually for shock.”

Sol Plaatje “Native Life in South Africa”
 
INTRODUCTION
 
Our people were robbed of their birth right, robbed of their identity, robbed of their traditions, robbed of their wealth, robbed of their freedom, robbed of their dignity.
 
After more than 350 years of protracted struggle, through courage, strength, determination and resilience, with outstanding leadership, the “robbers” agreed to surrender.
 
After our victory 22 years ago, we began to right the wrongs, to bring justice to our divided land. We have not done to those who robbed us of our land, what they did to us. Instead, in the moment of our victory, we acknowledged their rights as well. 20 years ago we passed a constitution which applies to all.
 
In Section 25 it says,
 
“4 a. the public interest includes the nation's commitment to land reform, and to reforms to bring about equitable access to all South Africa's natural resources; and ...
 
“5 The state must take reasonable legislative and other measures, within its available resources, to foster conditions which enable citizens to gain access to land on an equitable basis...
 
“8. No provision of this section may impede the state from taking legislative and other measures to achieve land, water and related reform, in order to redress the results of past racial discrimination...”
In the twenty-two years we have been building this new home for our people. One brick at a time, the foundations and walls are being put together of this home we are building called, “Free South Africa”.
 
We have not built a complete house yet. But we now have these years of experience, which have shown us which of our tools work, which need to be sharpened and which don't work at all.  
 
THE ROAD AHEAD
 
Much work lies ahead.
 
Only when the dignity of all who were forced off their land and separated from the graves of their ancestors has been restored, will we be able to rest.
 
But even then, even when we are finished the job of land reform, and enjoying our rest, we know that we won’t be able to rest for long.
 
For, restoring the fabric of a nation, that had its soul ripped apart by 350 years of conquest and oppression, will take generations.  
 
GOVERNMENT IS IN IT FOR THE LONG HAUL
 
We’re not Johnny-come-lately populist politicians, promising instant pudding and destroying our institutions, facilities and national integrity.
 
And nor are we colonial apologists who seek to use the Constitution only to the extent that it protects the apartheid status quo we inherited in 1994.
 
We’ve been opposing the Natives Land Act since the year before its enactment, since the formation of the ANC 104 years ago, in 1912.
 
It is our view, and has been since before the drafting of the Freedom Charter more than 60 years ago, that South Africa – including the land – belongs to all who live in it.
 
Land reform is not a nice-to-have; it is a national imperative. When South Africa truly does belong to all who live in it, all will benefit from the stability and security that will ensue. 
 
WILLING BUYER-WILLING SELLER
 
Government is sharpening the tools at its disposal to add momentum to the process.
 
For example, we initially hoped that landowners would buy into the prioritization of land reform, so we pursued a policy of willing buyer-willing seller when it came to land expropriation.
 
We did not want anyone to feel forced to participate in the process.
 
But humans being humans, the owners demanded top prices for the land – that government couldn't always afford to pay.
 
Many felt it unfair that the same owners who profited from the exclusion of the original inhabitants of the land, should profit again on selling it back to the people.
 
By holding out for higher prices, the landowners were effectively putting a brake on land reform.
 
That’s why government dropped the willing buyer-willing seller policy. We need to speed up.
 
There are no plans to forcibly remove any white farmers. But nor can we sit on our hands and wait for the desperation of our people to mount to the point that drove farm invasions to the north of us.
 
But instead of the buyer and the market determining the price alone, the price is now determined by what is fair and equitable, as required by the constitution. This is why, as we said we would do, we established the Office of the Valuer-General and appointed Mr Chris Gavor from the 1st of September 2015. From that date his office has been playing a key role in all the land we have acquired. 
 
STRENGTHENING THE RELATIVE RIGHTS OF PEOPLE WORKING ON FARMS
 
Another instrument we’ve been sharpening is “Strengthening the Relative Rights of People Working the Land” popularly known as the 50/50 Policy Framework which was announced by the President in the State of the Nation Address last year.
 
The policy framework seeks direct redress for farmworkers whose sweat and toil built a powerful agricultural sector in our country. Redress for those who have never profited from their labour, and whose welfare has never been considered. Government is buying them a share as co-owners and managers in the farms they have helped to build, through an equity injection into these enterprises. This is the most lasting solution to farm evictions.
 
Despite the outcry from those who don't want to see change and the rights of farmworkers to be affirmed, including many on the other side of this House, more than fifty commercial farmers expressed an interest in becoming part of this program.
 
10 proposals are finalised and being implemented, with about 540 beneficiaries on 7642 hectares of land.
 
We are sure that many more progressive farmers will prove the doomsayers and reactionaries wrong and become part of this program, as they come to realise that we are all together in building our new nation.
 
LAND CLAIMS
 
On 30 June 2014 the President assented to the Restitution of Land Rights Amendment Act paving the way for deserving persons and communities to lodge their land restitution claim, for a period of five years.  To date, in excess of 140 000 new land claims have been lodged with the Commission on Restitution of Land Rights which is almost double the 79 696 claims lodged over a period of 4 years in the previous window, confirming that reopening the Restitution process was indeed the right thing to do. The past year has seen an escalation in the communication drive to solicit even more claims from those dispossessed of their rights and in order for those to be lodged before the new deadline of 30 June 2019.
 
The Commission prioritises claims lodged before 31 December 1998, to investigate those claims, and to resolve through negotiations and mediation. This has been prioritised through their Annual Performance Plan shows how those claims will be prioritized and finalized.
 
The settlement of claims will be supported by a development programme, implemented by the Department, aligned to the Comprehensive Rural Development Programme; and through the three-pronged strategy for rural development set out in the National Development Plan. This will speed up the settlement of land claims.
 
In this year 2016, which marks the 50th anniversary of the declaration by the National Party regime that District Six would be a whites only area, leading to the forced removals of more than 60 000 residents, it is our democratic government which has brought hope to the people of District Six. Development of the land is taking place there as I speak.
But even once all those claims have been settled, we must acknowledge that many of our compatriots lost their land in the period of colonial conquest prior to the enactment of the 1913 Natives Land Act – and that these losses fall outside the terms of the present law.
 
THE ROLE OF DISTRICT LAND REFORM COMMITTEES TO DRIVE ACCELERATED AND SUCCESSFUL LAND REFORM 
In my budget speech last year, flowing from the National Development Plan, I announced that we would be establishing District Land Reform Committees (DLRCs) in all 44 Districts of the country. This has been done and we have also completed a training program for these committees so that they will be able to,
 
Identify farms suitable for acquisition by Government (the target is 20% of strategic agricultural farming land in the country by 2030);
Identify and interview potential candidates for farm allocation;
Advise the Minister on the strategic support needs of identified farms
Advise the Minister on the strategic support needs of recommended candidates; and
Advise the Minister on resolving land rights conflicts.
All the 44 DLRCs and their interim secretariats are now ready to preside over the 2016/17 land acquisition and allocation applications. All DLRCs have also finalized their annual calendar of meetings for 2016/17.
 
All applications for the acquisition and allocation of land, and Recapitalization and Development will be presented to these committees in all the 44 Districts before they go to the National Land Allocation and Recapitalization Control Committee (NLARCC) at head office for approval.
 
All the Beneficiary Selection Committees have been established. They will select and screen suitable candidates for land allocation. The DLRCs have also established panels of experts for the assessment and evaluation of business plans for the Recapitalization and Development applications.
 
We have also finalised the categories of beneficiaries to be targeted for land allocation. These will be chosen by the Beneficiary Selection Committees.
 
Category 1: Households with no or very limited access to land. We aim to address food security and social justice and provide the very poor with the opportunity to gain initial access to land to make a start with farming.
Category 2: Small-scale farmers who are farming for subsistence purposes and selling part of their produce on local markets. This may be land located in communal areas, on commercial farms, on municipal commonage or on church land. These are people who are producing for subsistence purposes on small plots of land, but who want to expand their operations.
Category 3: Medium-scale commercial farmers who have already been farming commercially at a small-scale and with an aptitude to expand, but are constrained by land and other resources.
Category 4: Large-scale or well established black commercial farmers who have been farming at a reasonable commercial scale, but who are disadvantaged by location, size of land and other resources or circumstances.
In addition, other specific groups to be targeted for land allocation and to receive strategic support by the State are:
Agricultural sciences university and college graduates;
NARYSEC participants;
Agricultural para-professionals;
Youth with experience or qualifications in the field of agriculture;
A “Special Category” of more vulnerable people, consisting of women, people with disabilities, farm workers, farm dwellers, labour tenants and military veterans;
Beneficiary Selection will be a public and transparent process. Notices requesting expression of interest will be put up at municipal notice boards and other public spaces frequented by people. Advertisements will be placed in the local media and information will be disseminated at farmers' meetings. The District Beneficiary Selection Committee will screen all beneficiaries in the district and make recommendations to the DLRC and NLARCC. 
 
MILITARY VETERANS
 
Speaker, the injustices of the past were deep and left many scars on our people. We have a nation to heal. There are those who took the ultimate decision to be prepared to lay down their lives in the cause of bringing democracy and freedom and returning the land to our people. Those are the Military Veterans. All countries throughout the world recognise their military veterans and hold them in the highest esteem. If we were to ignore them, it would be at our own peril. I want to recognise some of my comrades who military veterans who are listening to this debate today.
 
In recognition of this imperative the Minister has established a task team, which I head, to prioritise military veterans as beneficiaries of land reform. This is in spite of the fact that some veterans have already benefited through the normal application process of the department. This will result in a special dispensation to look after them. However the full terms of the law will still be followed.
 
In the past year we have acquired 8 farms for military veterans. We have also received numerous applications from military veterans, which we are busy processing.
 
The Chief-Directorate: Strategic Land Reform Interventions, has commenced with project visits to each of the farms acquired for military veterans to make an assessment of what further support they require. 
 
RECAPITALIZATION AND DEVELOPMENT PROGRAMME
 
The recapitalization program assists black farmers in all provinces of South Africa, on both state and privately owned farms. The program has recapitalised and developed land reform farms since the 2010/2011 financial year. The total amount spent on Recapitalization and Development in last financial year is estimated at R836 million.
 
There are 1 496 farms making up more than one million hectares under the programme in terms of the five year funding model. In the financial year 2015/2016 some of them were also assisted with drought relief.
 
There are currently 651 strategic partnerships secured to provide technical, financial and infrastructure support to farmers. The support varies from production inputs, infrastructure, machinery and implements. The program has managed to create 7 731 jobs of which 3 389 are for women. The programme has also managed to capacitate 2 937 farmers of which 1 306 are women through training in agribusiness.
 
SUPPORT TO FARM WORKERS FACING EVICTION
 
We remain concerned about evictions of farm workers from farms. In many cases farm workers are evicted because they do not know their rights under the Extension of Security of Tenure Act (ESTA), or the procedures to be followed to get assistance when they are evicted. Amongst the problems in assisting farm workers facing eviction are:
 
Most incidents are reported by community workers and constituency offices, instead of the legal procedures from the Courts
 
Courts are unaware of legislative procedures and do not inform the department of eviction cases they are dealing with.
 
Many occupiers are unable to report incidents due to fear of intimidation, distances from towns and lack of information
Many occupiers leave farms without being aware of their rights in terms of the Act;
 
The Police are unaware of the procedure for illegal evictions
 
Lack of alternative accommodation for occupiers that were evicted
The provinces have started the process of reviving the ESTA forums. These forum will serve as a platform for the sharing of information on ESTA matters, including information of reported cases.
 
I want to encourage farm-dwellers and their organisations to participate in the coming weeks in the public hearings the Portfolio Committee is currently busy with on the ESTA Amendment Bill.
 
I ask members of this august House to also publicise the anti-Evictions toll-free number 0800 007095 which allows farm-dwellers to access free legal and mediation assistance through our Land Rights Management Facility if they are facing eviction.
 
NATIONAL GEOMATICS MANAGEMENT SERVICES
 
The Land Audit Phase 2 project is complete. The report is being reviewed internally. The next step is to present the report to top management of the department for comments, inputs and adoption. It will then be submitted to the Minister for consideration and adoption before it is tabled to Cabinet.
  
The department has since 2008 been offering bursaries to aspirant students to obtain qualifications in Surveying. During the 2015/16 financial year, the department sponsored 473 students pursuing their studies in surveying of which 157 were females and 316, were males. The total bursary fund amounted to more than R34 million. In 2015, 69 students successfully completed their studies, 28 of which are female and 41 are male.
 
Due to financial constraints, the department aims to give out 30 new bursaries as compared to 98 the previous financial year. The bursary fund for 2016/17 amounts to R31 million.
 
Deeds
 
The Branch Deeds Registration is busy drafting a Business case to deal with the Modernization of the Deeds Registration System.The scoping of the work for this project is in the initial stages. A Project Management Office will be established in the Branch for this project. 
 
CONCLUSION
 
“While you are sitting happy and comfortable in your bright and wealthy homes, just give one thought to the hundreds of native families, men, women, and little children, even at this moment, being ruthlessly evicted from their humble homes, where perchance they were born, turned homeless, helpless, and hopeless, on to the roads - wandering in misery about the land of their forefathers in search of any wretched spot whereon to live and rest.
 
“And then, think you, that at the very moment this calamity is overwhelming them, your Government and your representatives actually come forward and block the way of these wretched people to raise for themselves a new home on any farm-land. And the farm-lands are nine-elevenths of the total surface of this Province. Why, I ask, should you treat us thus?”
 
Appeal to the British Public about The Native Land Act, 1913 by John Langalibalele Dube, President, South African Native National Congress.
 
Ubaw'omkhulu uDube owathetha lamazwi ngexesha lakudala, njenge nyange lesizwe ngoku,sikholelwa ukuba elele nje usathetha.

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BUDGET VOTE SPEECH BY DEPUTY MINISTER MASHEGO DLAMINI.

Madam Speaker, Ladies and Gentlemen.

In his address the Honourable Minister Nkwinti briefly touched on our Agri-Parks programme. This is a positive action, and a logical development in rural development - the latest manifestation of our longstanding goal of agrarian transformation, and as such it will both aid and benefit from existing initiatives aimed at the same outcome.

The individual Agri-Parks will each evolve around an Agri-hub that forms the centre of the model and from which the activities of a range of services will be coordinated. For example, animal handling facilities and warehousing, silos, processing plants and tanneries, and including social and retail services. The Farmer production support units will be the immediate link with farmers and will be complemented and strengthened, in various ways, by existing departmental programmes like the Animal and Veld Management Programme; the River Valley Catalytic Programme, and further aided by the Recapitalisation and Development Programme, evolving restitution efforts, initiatives to revitalise rural towns, not forgetting the earnest and dependable efforts of the members of the National Rural Youth Service Corps – NARYSEC.

Agri-Parks will provide a network of contracts between producers, markets and processors, together with the physical infrastructure required for the transforming of industries.  They will focus primarily on the processing of ‘agricultural products’, and successful outcomes are hugely dependent on the availability of viable agricultural land, in the sense of it being capable of supporting a range of productive agri-horticultural enterprises side by side, feeding off each other and helping each other grow.  Some progress has been made in the last financial year where work has happened in all districts regarding business planning; designs and the establishment of institutional arrangements to ensure improved governance and coordination of the Agri – Parks programme.  In some Districts, construction has already commenced on identified Agri-hub sites, for example bulk electrical works in Witzenberg in the Western Cape to unblock the hub development; construction of an abbatoir in Butterworth in the Eastern Cape amongst others.  In the new financial year 47 infrastructure projects will be completed in Agri-hub and farmer production support units across the country.  In addition 115 agricultural enterprises will be supported to ensure that there is sustainable production to support agro-processing at the hubs.

As highlighted in the NDP, there is a need to expand irrigated agriculture to increase production and transform the rural economy. It is therefore essential that agriculture is supported - by expanding irrigated agriculture; by the conversion of under-utilised land; by the elevation of land reform projects into commercial production ventures, by the introduction of product value-chains, by opening up more employment opportunities and by getting more support from better resourced players. In support of the Macadamia industry, the department has completed the construction of 11km bulkline in the Ncerha Macadamia Project in the Eastern Cape. The rising main and pumpstation are planned to be completed by the end of this financial year.

In KwaZulu-Natal, we have had several successful, transformative and catalytic projects that will have a significant positive impact on the production for Agri Parks. Last year we completed the upgrade of the Nsuze irrigation scheme, which extended to 300 hectares, and to 400 farming beneficiaries at a cost of R60m.

In this financial year, two major projects in KZN will improve irrigation schemes: The Mthandeni Irrigation scheme, at a total value of R40m, will benefit 150 farmers over a total of 310 hectares; and the Mooi River irrigation scheme – which is as extensive as 600 hectares - aids more than 500 farmers who will be benefitting from the scheme to the extent of a total cost of R37m.

In Mpumalanga, we will be upgrading the Dingledale and New Forest canals at a value of R16m and this will benefit 1000 farmers. At the Bushbuckridge Agri-park, we will be constructing a Farmer production support unit to the value of R12.3m for 40 farmers involved in vegetable production.

 

Revitalization of rural towns and industrial parks in townships are other important government objectives. One good example of this the completion of the construction of a runway in the small town of Somerset East in the Eastern Cape. The project will contribute significantly to:

• Employment of Youth
• Job Creation
• Regional Economic Development
• Strengthening Heritage
• Developing Tourism
• Creation of Industries

Linked to this project, the department is in partnership with the EC Provincial Department of Public Works and Roads in upgrading the first 20km of a 113km road project.  The project is expected at its height to create 200 jobs and will also unblock the agricultural and tourism potential of the area.The Department has further taken the challenge of agro-logistics to the next level by signing an Implementation Protocol with the Provincial Department of Roads and Public Works to upgrade rural roads that lead to strategic projects and give access to state farms in the province.

Similarly, in Limpopo we have completed the construction of a multi-purpose centre which provides community access to a library, an amphitheatre and administrative facilities for the community leadership. The next phase of the project will include recreational facilities and a swimming pool.

The NDP states that in rural areas the poor are marginalized; there is widespread inequality, limited access to land, water, education and skills, and poor infrastructure. Chapter 6 of the NDP, which deals with “an integral and inclusive rural economy”, highlights the importance of rural economies and the revitalization of rural areas. So the objective of the NDP, from a rural development perspective, is to combat poverty by providing rural areas with opportunities to fully participate in the economy. and ensure access to improved technology.  In the Eastern Cape, we are proud of the community of Radway Green who have worked with the department in constructing their own eco village.  The entire village has been built using renewable technology and hydroform building technology.  On Saturday last week the project received a commendation from PPC for community development.  The department intends to drive development of similar projects across the country in ensuring improved living conditions for people living on farms and rural town revitalization.  It’s very inspiring.

Madam Speaker, improved access to ict continues to play an important role in transforming the lives of rural children and communities.  In this financial year we will continue to roll out the i-school programme to 48 additional schools and in partnership with DST, we will establish 8 more digital doorways.  This year, in partnership with our i-school partner, we will be running a Rural School Music competition using the technology that is being made available to our children.

As far as deliverables are concerned, a process of prioritisation of all identified initiatives will begin to determine short to medium term initiatives, while the planning process will begin for long terms initiatives. The department will begin the process of having all plans approved by respective district municipalities and, at the same time begin to develop the remaining plans.

Let me give you a few figures at this point: During the past year:

• 48 projects were implemented in rural communities to improve production, in support of improved food security, and affecting 12, 759 beneficiaries;
• 116 socio economic infrastructure projects were coordinated and facilitated, to the benefit of 9, 736 households;
• 31 infrastructure projects were facilitated within the 27 priority districts to support Agri-Parks development;
• 451 Animal and Veld Management Programme projects were implemented, benefiting 2, 206 smallholder farmers;
• 24 projects were implemented in support of the River Valley Catalytic Programme, benefiting 1, 460 households;
• 210 rural enterprises were supported in rural development initiatives; again with special focus on 27 District Municipalities. There were 2, 943 beneficiaries;
• 9 664 skills development opportunities were provided to support rural development initiatives;
• 3, 066 skills development opportunities were provided to NARYSEC youth; and
• 198 Agricultural graduates were deployed in rural projects.

 

Madam Speaker, we have in the past reported on the growth of the rural arts and crafts cooperatives especially in the Eastern Cape, KwaZulu-Natal, Limpopo and Mpumalanga. In the past year we have continued with the capacity building initiatives focussing on skills needed for sustainable business management and co-operative governance. The Department has been working with a training partner who had originally introduced a business model for rural arts and crafts and significant progress has been made in skills and market access.  In addition, the Arts and Craft Primary Co-operatives in the four provinces have shown readiness to form Secondary Co-operatives at the district level. This will enable them to buy in bulk and so strengthen their bargaining powers.  They will still need further support in accessing markets and the training of the board members of the secondary co-operative in market information, auditing, product diversification and financial management, especially in pricing and selling.

In August 2015, the Co-operative Banks Development Agency, the CBDA, an Agency of National Treasury mandated with the promotion and regulation of Co-operative Financial Institutions in the country, entered into a Memorandum of Understanding with the Department of Rural Development and Land Reform in terms of which the CBDA is to provide capacity building support to the Arts and Craft Co-operatives’ prospective CFI. To date, the cooperatives have raised the required deposit of R100 000 and the CFI is to be registered by June this year.  The chosen name is Mzansi Rural Arts and Craft Club. 

To continue to strengthen the skills component of the NARYSEC programme; the Thaba Nchu NARYSEC College Upgrade has been allocated R 40 million, for planning, designs and upgrades which will benefit NARYSEC students  and become a base to conduct community training across the country.

The Department has also partnered with the ARC in establishing a training centre at the ARC campus in Pretoria, and this facility will in this year be utilised to continue with capacity building initiatives for smallholder farmers linked to the agri-para professionals to be deployed to the farmer production support units, as well as for youth development.

As Nelson Mandela reminds us, “Everyone can rise above their circumstances and achieve success if they are dedicated to and passionate about what they do”.

In the 2016/17 Financial Year, the department will continue to focus on the roll out of the Agri-Parks in all districts focusing on core infrastructure at the agri hub and the farmer production support units.  In addition we will facilitate support to 115 new Agricultural Enterprises and 50 new non-agricultural enterprises will be supported, and 94 existing agricultural enterprises and 25 existing non-agricultural enterprises. We are also plan to facilitate 10 000 skills development opportunities and 6000 job opportunities in this Financial year. In this Financial Year an additional 500 rural women in various districts in Eastern Cape, Mpumalanga, Limpopo, KZN, North West and Western Cape have been identified who will receive support and training in arts and craft, textile product design, producing and marketing.

Madam Speaker, honourable members, our rural development initiatives and activities are very diverse, yet very focused – focused on agrarian transformation that will lift our people up to the point where they can be productive in their own interests – thus energising both their own potential and that of the nation. We are succeeding.

St Francis of Asissi is reputed to have said: “Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible”.

I thank you very much

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Responses

 

Government’s Land Reform does not reflect Freedom, Fairness and Opportunity: Thomas Walters (DA) Shadow Deputy Minister of Rural Development and Land Reform

Honourable Chair, Honourable Members and valued guests,

The Democratic Alliance is the party that holds the concepts of Freedom, Fairness and Opportunity dear.

Let me unpack these concepts one by one to the Members and the guests present so that there can be no misunderstanding or misrepresentation of what we in the DA are about. Let me also do this in the context of Land Reform so that what we say and what we do regarding this crucial national priority is clear to all South Africans.

With Freedom we believe that no government or group should prevent you from owning land or try to control what you should do with your land. You should be free to pursue your dreams, using your talents and using enabling support from a facilitator state, to ensure that you are not beholden to anyone.

It is therefore of huge concern to the DA – as pointed out by my colleagues previously – that government consistently fails to transfer ownership of land to beneficiaries. It persists in maintaining state ownership and control over land, essentially turning beneficiaries of Land Reform into cheap labour for the state.

As another example of the mockery of freedom under the outgoing government, we can see how it persists in entrenching the Apartheid and Colonial tactic of using traditional leaders to keep itself in power. President Zuma encourages traditional leaders to claim land rather than asking individuals to do so and actively treating traditional leaders like the owners of tribal land, rather than allowing the South Africans living on such land to claim the land they use as their own.

Many traditional leaders see through that and want those communities they are associated with to be free, but the ANC government does not want them to treat South Africans living in communal areas as equal citizens. They want communal farmers to remain dependent ‘subjects’; perpetually dependent on government grants and locked in electoral bondage to the ANC. It is no surprise that the poorest South Africans live on potentially the most productive land in South Africa on the Eastern Seaboard of the Country. Where is the freedom in that?

A DA government would ensure that land obtained for land reform is actually owned by individual beneficiaries. We are the party that wants the poor to own land. Under a DA government, the former Ciskei, Transkei and Ingomyana Trust land will be the breadbasket of South Africa. A DA government will ensure that residents on communal land are affording their full constitutional rights and individually own land.

In this budget, Cadastral and Geometric services, The Land Claims Commission and farmer support is not oriented towards this end which brings us to the next DA Concept, Fairness. With Fairness, we mean that you have the same rights as the Guptas, or the President, whether you are a farmer, a farm worker, a farm dweller, a traditional leader or an occupant of communal land. This means that you can access your constitutional rights regardless of who you are.

That brings me to the issue of Land Claims. The ANC with great fanfare reopened land claims ahead of the 2014 elections, cynically using legislative processes, despite demands by the DA to ensure proper resourcing. It was in effect an elaborate election lie. It is common cause, underlined by a recent independent Human Sciences Research Council report presented to this committee, that the ANC government has simply failed to process new land claims. Not even the outstanding claims have been settled. It is clear that the ANC simply does not care about its election promises.

If you do not believe me as a DA politician, I invite all South Africans to read the HSRC research and read the committee report. The figures of the last 22 years show the ANC does not care about fairness enough to fund it.

This budget simply rewards failure and shows nothing new, except for the Agripark concept recently introduced. While one can theoretically support this much-vaunted Agripark concept, we suspect we know what is going to happen. Agriparks are associated with surprisingly quick transfers of money to this line item, just months before an election. This is without any genuine clarity as to who the management will be, how impact will be measured or final ownership. We suspect more election goodies and more ANC cronies will be the Agripark good story to tell a few years from now.

The Democratic Alliance does not believe this budget speaks to our notions of Freedom, Fairness and Opportunity. We therefore oppose this budget!

I thank you.

Speech by the Chairperson of Rural Development and Land Reform (Debate on vote: 39: Rural Development and Land Reform) NA Chamber

INTRODUCTION

Hon Chairperson
Hon Minister's
Hon Deputy Minister's
Ladies and Gentlemen

Section 26 and 27 sub section 4 pre-scripts that departments have to table the strategic plan which is a 3-5 years plan and the Annual Performance Plan at the beginning of the financial year to be considered by parliament as Parliament is responsible for appropriating money to the department to be able to execute its mandate.

POSTS

The department has been able to fill some critical positions such as the CFO and the DDG for corporate service as these positions were vacant for some time, furthermore the appointment of the Valuer General which was a step in the right direction, his appointment will assist in providing government agencies with advisory services related to property and real estate matters.

There is therefore a need for the department to review its organogram to make sure that the available human resources is able to execute the mandate of the department as there is a decrease in the budget of the compensation of employees. The department need also to finalise the human resources development strategy to ensure that employees are empowered to enhance service delivery.

PAYMENT OF INVOICES

To ensure compliance with government regulations and legal prescripts, the department has to ensure that the valid invoices are paid within 30 days, progress has been made for paying 91% in 2013/2014 to 92% in 2014/ 2015 of the invoices submitted on time but more still needs to be done to make sure that all services providers who submit valid invoices are paid on time.

The under expenditure in the transfer of payments to excluding entities such as:-

The National Agricultural Marketing Council
The National Wool Growers association
CSIR, MRTT and CTH is due to the late transfers which were done towards the end of the financial year which must be avoided, transfers must be done on time, and the transfer must not be regarded as fiscal dumping.
AUDIT FINDING

The previous year the department has been able to implement some recommendations made by the Auditor General. In 2013/14 the department has again obtain unqualified audit findings with matters of emphasis to be attended to avoid recurrence, we expect the department to take those recommendations serious and implement all of them.

In 2014/15 the department has been able to spend 98% of its allocated budget of R9.1 billion, but there is a need to align the expenditure with the targets that has been achieved and to ensure that there is value for money on each and every spending.

RECAP

The freedom Charter emphasised that government must help all those who work the land with implements, seeds, irrigation infrastructure and other material support.

It has been proven by the research done in Africa especially in Kenya and Mozambique and other countries that small holder farmers need to be supported for them to grow and improve production, the failure of small holder farmers was attributed to the lack of support.

The RECAP Programme was initiated in 2009 to assist land reform beneficiaries' who are distressed who need post settlement support to maximise production.

RECAP programme provided technical support, skills development and infrastructural development, from 2010 to 2014 (1 459 farms) were recapped to bring all the land reform farms into full production, to guarantee food security and create jobs in the agricultural sector and enable emerging black farmers to be fully fledge commercial farmers.

Although there were challenges experienced during the implementation of the programme such as:-

Late approval of business plan which impacts on the farming time frames.
Late disbursement of funds
Lack of communication between the department and beneficiaries.
Breaching of the contract by both beneficiaries, strategic partners and the department.
Criteria for selection which was not clear.
Lack of intergrated approach on post settlement support both by DAFF and Rural development and Land Reform.
The process of the intergrated funding model that is being considered by Treasury, DAFF and Department of Rural Development and Land Reform is mostly welcomed to avoid duplication. There is a need for this programme to be extended to the needy beneficiary's especially emerging and small farmers.

CRDP

In the 2014 Manifesto as the ANC we promised rural people that we will implement the rural development strategy focusing on meeting the basic needs, land strategy focusing on meeting the basic needs, land reform, and rural enterprise development. The department has implemented that through the CRDP

As the department is the facilitator, and the coordinator of the CRDP which was initiated in 2010 to ensure that there's intergrated and comprehensive rural development, and to bridge the gap that exist between urban and rural people with regards to service delivery.

The allocation which will increase in the MTEF period will create jobs, for the rural people and reduce poverty and improve the standard of living of rural people through service delivery in areas where it was implemented in Muyexe, Diyatalawa, Driefontein and Ntunda to mention but a few, the CRDP intervention will reduce the fragmented rural service delivery interventions.

It is the ANC that can improve the lives of all the people. Irrespective of their colour, race and gender.
The Challenges which requires the intervention of the community members is the vandalisation of infrastructure like in Muyexe, whereby all computers were damaged, in other areas theft it's a major challenge especially in rural schools. Communities have to work together with police to ensure that those involved must be brought to book. It is the responsibility of communities to protect and prevent any infrastructure from being damaged or stolen. The department has therefore being able to exceed most of the targets set for rural development which is the right thing to do. As the 52nd Conference has identified land and rural development as a priority.

The nine point plan talks about the revitalisation of agriculture and agro processing value chain, this has led to the establishment of Agri-Parks in the 44 districts, and the intergrated approach by various departments is mostly welcomed. The R2 billion that has been set aside for Agri-Parks will go a long way in mentorship, in the development of farm infrastructure and marketing.

Furthermore this Agri-Parks will bring under utilised land into full production.

Will develop rural economy by assisting small holder farmers to be part of the commercial stream by providing market for their produce.
Creating jobs for the unemployed
District Agri-Parks Management Council and National Agri-Parks advisory council be established on time for the structures to be able to function as expected.
We appreciate progress that has been done in all identified areas as 10 566 people will benefit from this Agri-Parks.

Involvement of small holder's farmers in the development, it's an indication that the department is using the bottom-up approach in development, people must speak for themselves what is it that they want. Agri-Parks is one way of strengthening support to cooperatives in marketing and supply activities to enable small scale producers to enter the formal value chain.

NARYSEC

In 2014/15 financial year the department was able to train 2 211 community members and 3 145 rural youth through NARYSEC Programme. We welcome the increase of the NARYSEC budget to R425.9 million for 2016/17 which is expected to increase to R451 million in 17/18, The increase will assist the department to recruit 2 700 young people compared to 2 500 intake in 2014/15 which is an increased by 200, through the NARYSEC programme young people will acquire skills which will make them employable or to be able to start their own business.

As the department is working together with other departments and SETA'S to make sure that young people get the skills which are required by the country. The number of corps intake is expected to increase over the MTEF period to reach a total of 15 000.

This programme has a positive impact in changing the lives of the young people, the only concern to be addressed is the delay in the issuing of statements of results or certificates, which deprives the NARYSEC graduate from seeking job opportunities as this programme is aimed at addressing the challenges of poverty and high rate of unemployment especially the youth sector. The exit strategy must be developed to enhance employability prospects of the youth.

RESTITUTION

On the 8th of January 2015 President Jacob Zuma on behalf of NEC re affirm the commitment of the ANC to return land to the rightful owners and need to accelerate land reform.

To prevent eviction
To improve the lives of farm workers and
Land development for range of uses including food
We appreciate the progress made by the Commission in addressing the legacy of the 1913 Native land Act. Although the pace is slow, but progress is being made. The commission has been able to spend 100% of its allocated budget of R2.9 billion in 2014/15 financial year and the targets were achieved.

The commission has been able to:

Finalise 372 claims
Settle 428 claims.
Researched 1 516 claims out of 2 660 targeted claims.
To approve 119 phased projects.
The budget increase of R3.2 billion for the commission will assist in fastracking the restitution process by.

Finalising 454
Settling 615
Researching 1 530
And approving 76 phased project, all these claims are claims which were lodged before 31st December 1998. Due to partnership with academic institutions and other service providers the number of claims that will be researched will increase, it means that more resources will be required to finalised the valid claims.
We commend the commission for ensuring that the limited resources allocated to it, are being used effectively, efficiently and economically.

The increase in the budget allocation for the department from R9.3 billion to R10.1 billion out of which R3.1 billion went to Restitution it's an indication that the government is serious about fastracking the land restitution programme which ensures that all people whose land was taken, get their land back; Land and Agrarian reform must be used to turn around the economy.

Re-opening of the lodgement as per Restitution of Land Rights Amendment Act, the 2014 SONA and Manifesto is going well as the services are brought nearer to rural people electronic lodgement is done, public awareness has being strengthened.

LEGISLATION: - The Constitution

ANC took a resolution that we need to provide a system that will provide for exception to the cut off done at 1913 as to accommodate the Khoi-San. We appreciate that the consultation process have started with regard to the development of the policy on the exceptions to the 1913 Native Land Act to accommodate the descendants of the Khoi and San, Heritage sites and historical landmarks. We will monitor progress to ensure that this policy is finalised.

CONCLUSION

Compliance to PFMA, treasury regulations and other legal prescripts must be a priority.

The committee will not tolerate

Any wasteful expenditure
Fruitless expenditure
Irregular expenditure
Any overspending
Any underspending. While people are waiting for services.
The department must ensure the effective use of the allocated resources for the benefit of the people especially the rural poor.

The accounting officer must take steps to prevent financial mismanagement as per section 38 sub section 1c of the PFMA and treasury 9.1 (nine point 1 point 1). Lot has been done to improve the lives of the South Africans but more still needs to be done.

As ANC we support the budget vote of the department of rural development and Land reform, working together we can move South Africa forward.

I thank you