Department of Agriculture, Forestry and Fisheries budget and strategic plan: briefing

NCOP Land Reform, Environment, Mineral Resources and Energy

13 April 2010
Chairperson: Ms A Qikani (ANC, Eastern Cape)
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Meeting Summary

The Department of Agriculture, Forestry and Fisheries presented its Budget Vote for 2010/11 to the Select Committee on Land and Environmental Affairs. Its comprehensive presentation included an analysis of its strategic plan and expenditure. The integration of the three components, agriculture, forestry and fisheries, into the new Department had come to effect on 01 April 2010. The transfer of the Marine and Coastal Management division had encountered some difficulties. However, all constraints had since been resolved. Expansion of market access for South African and African agricultural, forestry and fish products both domestically and internationally was also highlighted.  The Department would establish and strengthen cooperative governance and functional relations with local and international stakeholders. It would also provide effective audit, investigation and legal, human resources and financial risk management, and would improve service performance through the implementation of quality standards under the Batho Pele principles. The Department would review legislation on agriculture, forestry and fisheries activities as well as on state-owned entities. The Department would engage provinces and other industry stakeholders in order to insure monitoring of expected outcomes on a continuous basis. Furthermore, a policy framework would be developed and implemented for fishing rights allocations in the commercial sector. Also, a strategy would be put in place for abalone and hake. New funding options and models included engaging the Land Bank and international donors as well as the Industrial Development Corporation and commercial banks. The Department would provide incentives for the establishment of private sector micro-financing institutions in rural areas; implement a comprehensive scarce skills development programme involving domestic and international partners; and expand exports through enhancing inter-Africa trade by introducing a technical assistance programme for special markets. The Department gave details of the Comprehensive Agricultural Support Programme and the Ilima/Letsema campaign allocations for the year 2010/11 financial allocations to provinces for the year 2010/11. It also gave details of LandCare South Africa allocations. The Extension Recovery plan was included in the Comprehensive Agricultural Support Programme allocations.

The Committee was upset about the alleged illegal auctioning of agricultural equipment in the Eastern Cape. It was apparent that most of the agricultural infrastructure was in a dilapidated state through years of neglect. The extent of soil erosion was of deep concern to the Committee. Members also discussed the deployment of unqualified personnel. Because of lack of time the Chairperson asked that responses be given in writing and forwarded to the Select Committee.


Meeting report

Chairperson’s opening remarks
The Chairperson alerted the Committee and the Department of the alleged auctioning of state agricultural equipment in the Eastern Cape. She requested an informal discussion on the matter before commencing the meeting. She expressed her unhappiness about the absence of the Minister or the Deputy Minister.

Strategic Plan: Department of Agriculture, Forestry and Fisheries
Mr Peter Thabethe, Acting Director-General, Department of Agriculture, Forestry and Fisheries (DAFF) announced that the integration of the three components, agriculture, forestry and fisheries, had come to effect as from 01 April 2010. The Marine and Coastal Management division transfer had encountered some difficulties. However, all constrains had since been resolved. He stated that the proposed DAFF structure had undergone the required consultation procedure and was in a process of implementation, with emphasis on the contribution of the new organisational structures contribution to achieving Government’s five key priorities.

Mr Thabethe announced the Department’s vision. Its mission would be achieved through developing and sustaining a sector that contributed to and embraced economic growth, development, job creation, rural development, sustainable use of natural recourses and food security. Its values were driven by the aim to deliver excellent service with an attitude that was ambitious, passionate and a reliable with a dedicated workforce, while focusing on people, economic and rural development.
The Department sought to increase the profitability of the production of food, fibre and timber products in all categories of producers (subsistence, smallholder and commercial farming). It aimed at improving production systems anchored in commodities with a competitive and comparative advantage in each province while coordinating the Government’s food security initiative and developing comprehensive support systems for rural development.

The Department aimed at a sustainable management of natural resources by promoting environmentally sustainable production systems.  The Department also aimed at ensuring the protection of indigenous genetic resources and increasing the contribution of ‘green’ jobs in order to improve livelihoods. The Department was to embark on effective national regulatory services and risk management systems in order to promote safe food by managing the level of risks associated with food, diseases, pests, natural disasters and trade while also establishing and maintaining effective early warning and mitigation systems.
Another goal of the Department was to create a transformed and united sector that would increase equity, ownership and participation of Previously Disadvantaged Industries (PDIs). Enhancing effective support systems of assets utilisation and improving social and working conditions in the sector were highlighted. The Department would also provide leadership and support in research, training and extension of the sector.
With regards to the sector’s contribution to economic growth, Mr Thabethe stated that the Department would increase income and sustainable job opportunities in the value chain while also increasing the level of public and private investment in the sector. Expansion of market access for South African and African agricultural, forestry and fish products both domestically and internationally was also a feature in the Department’s goals.  The Department would establish and strengthen cooperative governance and functional relations with local and international stakeholders. It would also provide effective audit, investigation and legal, human resources and financial risk management, and would improve service performance through the implementation of quality standards under the Batho Pele principles and general legislative mandate.
 Mr Thabethe announced the Departments key outcomes: comprehensive rural development linked to land reform and food security, the speeding up of growth and transforming the economy in order to create decent work and sustainable livelihoods. Another outcome would be a massive programme to build economic and social infrastructure while using sustainable resource management. He indicated the Department’s programmes.

The Department would review legislation on agriculture, forestry and fisheries activities as well as on state-owned entities (SOEs). The rationale was to ensure harmonisation, rationalisation and alignment in order to improve the functional integration and efficiency for improved management and regulation of the sector. A sum of R414 million would be provided for Human Resource Development and management. That allocation would enable the department to secure a skilled and capable workforce.

The Department would engage provinces and other industry stakeholders in order to insure monitoring of expected outcomes on a continuous basis. Functional activities of production, producer support and technical advisory services should be executed by provinces in partnership with the private sector. The Department would increase the number of commercial farm employees from 780 000 to 800 000 by the year 2015. The number of smallholder farmers would be increased from 200 000 to 250 000 by 2015. The percentage of small farmers producing for sale would be increased from 4.07% to 10% by 2015. The envisaged outcomes were increased wetlands rehabilitation and decreased deforestation.

Furthermore, a policy framework would be developed and implemented for fishing rights allocations in the commercial sector. Also, a strategy would be put in place for abalone and hake and reviewed continuously in respect to research, management and compliance. New funding options and models included engaging the Land Bank and international donors as well as the Industrial Development Corporation (IDC) and commercial banks. The Department would also provide incentives for the establishment of private sectoral micro-financing institutions in rural areas.

The Department would implement a comprehensive scarce skills development programme involving domestic and international partners in the next three to five years. The programme would deploy agriculture, forestry and fisheries sciences technicians, environmental sciences, agriculture engineers, microbiologists and food technologists.

The Department would expand exports through enhancing inter-Africa trade by introducing a technical assistance programme for special markets. A committee of social, economic and scientific experts would be appointed to oversee certification of imports and exports to safeguard national interests.

Mr Thabethe gave details of the Department’s Comprehensive Agricultural Support Programme (CASP) financial allocation to provinces for the year 2010/11 (slide 31); the Ilima/Letsema campaign allocations for the year 2010/11 (slide 32); and the LandCare South Africa allocations (slide 33). The Extension Recovery plan was included in the CASP allocations (slide 34).

Discussion:
Mr D Worth (Free State, DA) informed the Department that the Select Committee had undertaken an oversight visit to the Eastern Cape. The Committee had discovered that in an inland abalone farming plant completed five years previously there had been no products for the market. He noted that the IDC was also involved; however, he asked if the Department had overlooked occurrences of that nature. He observed that in the Eastern Cape there were extensive cases of soil erosion, and asked what the Department was doing about it.

Mr G Mokgoro (Northern Cape, ANC) stated that he was a subsistence farmer in the Northern Cape. He stated that there was a lack of assistance on all levels on the part of the Department; he challenged the Department’s vision of excellence. Then he asked as to why the infrastructure already in place was not used by the grassroots people even though they lived in close proximity. He asked why irrigation systems such as the Spitskop Dam did not serve the people living around them. He pointed out that most of these infrastructures were in a dilapidated state. He asked how in the auctioned farming equipment in Qofumvaba, Eastern Cape, would be replaced.

The Chairperson informed the Department that on the Committee’s oversight visit to the Eastern Cape the people on the ground who were said to be in charge of giving farmers information, advice and assistance had no such skills and were dismally ignorant of their responsibilities; however, they enjoyed funds provided by the Government without rendering services in return.

Due to time constraints the chairperson asked that responses be given in writing and forwarded to the Select Committee.

The meeting was adjourned.


 


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