SPEECH BY THE MINISTER FOR AGRICULTURE AND LAND AFFAIRS, HON. LULU XINGWANA (MP)

LAUNCH OF THE REPORT ON LAND OWNERSHIP BY FOREIGNERS IN SOUTH AFRICA

SHERATON HOTEL, PRETORIA

14 SEPTEMBER 2007

Programme Director

Deputy Minister for Agriculture and Land Affairs, Adv. Dirk du Toit

MECs present here today

Directors-General and their deputies

Members of the African National Congress

Members of the Congress of South African Trade Unions

Members of the South African Communist Party

Representatives of the National African Farmers Union

Members of the media

Ladies and gentlemen

There has been a widely held concern that the phenomenon of foreigners owning South African land, especially coastal and inland prime tourism and game reserve land is materially influencing effective land reform.

Every area of land owned by a foreigner and all coastal land, used for game ranches or golf estates detracts from land available to previously disadvantage South Africans who surely must have the first claim to that land.

If this trend continues unabated, Government’s ability to meet its Constitutional duties to deliver land reform, housing and access to related resources such as water, health, food and social security will become increasingly difficult. Instead of benefiting, the previously disadvantaged South Africans will be the losers, not only in respect of access to land and these resources, but also concerning the dignity and self-worth resulting from an effective service delivery.

The unabated trend will also further restrict the ability to lift the poorest of the poor out of existing poverty trap. Food sustainability, among other things, will also be affected detrimentally. Another possibility, less direct but no less important consequence, is the effect that this trend is having on the land market, including the nature of elitist property developments and the accompanying cost of all developments, at the expense of our intended beneficiaries. Government would be failing in its duty if it did, nothing about this phenomenon.

Against this background, Government has been engaged in the process to address ownership of land by foreign citizens so that we can fairly address these concerns which were also raised at the Land Summit in July 2005.

Following the Land Summit, a Panel of Experts was set up to guide this process and the report is now ready for wide consultation.

It is important to note that the Report presents the findings and makes recommendations to the Ministry for Land Affairs, which can be used to inform South African Policy on the issue of foreign land ownership.

As the Report indicates, management of foreign ownership of a country’s land is evident in many countries worldwide. We would be even more culpable against this background; our Government would be even more negligent if no steps were taken in the light of these threats. Whatever Government decides on, it must be responsible and take account of all possible consequences of that

action, including the implications for macro-economic factors and foreign investment.

Further is should be noted that Government is committed to protecting land rights to all South Africans, with particular emphasis on previously marginalized communities to enable increased income levels and job opportunities, facilitate access to productive land use and well-planned human settlements.

The land question in South Africa is central to the actualisation of the core Constitutional values of human dignity, the achievement of equality, the advancement of human rights and fundamental freedoms, non-racism and non-sexism.

Programme Director, I am well aware that equitable access to land is a yard stick for measuring the worth of citizenship and how rights, freedoms and responsibilities are distributed in South Africa.

Progress in resolving the land question is an important barometer for measuring the manner in which South Africa is consolidating its democratic gains. If not attended to, the unregulated ownership of land by foreigners may impact on housing and therefore contribute to the lack of readily available and affordable land for land reform.

As the Minister responsible for Land Affairs I will consider both findings and recommendations of the Report and public submissions received in making a policy proposal on foreign land ownership in South Africa.

As we consider both the findings and recommendations of the Report we need to ask ourselves the following questions:

• Does Government need a comprehensive policy and legislative framework contributes to the acquisition, use and investment in land by non-South African citizens?
• Should Government monitor and intervene by policy, legislative and other means, in monitoring and preventing any possible negative consequence of land acquisition/use by non-South African citizens; through an inter-ministerial/departmental oversight committee?

Programme Director, the Report provides useful comparative international/foreign practices (laws, policies, impact, etc) on the issue of land ownership by non-citizens (for example: Singapore, Indonesia, Canada, USA, Brazil. What is being recommended in the report is therefore not unique to South Africa. There is already an international precedent to this.

The Report recommends improvements on disclosure of information to improve the national statistics on this type of ownership. It also deals with the issues of the impact on the property markets on land acquisition and use by non-South African citizens by:

o Distinguishing between land use for residential, commercial, agriculture, eco-tourism/tourism/ game lodge and golf course purposes;

o Proposals for disposal of certain changes in land use to foreigners

As matters stand and as the Minister for Agriculture and Land Affairs, I now call for constructive comments on the Report and Recommendations by the Panel of Experts on the Development of Policy regarding Land Ownership by Foreigners in South Africa.

Programme Director, for those people who want to make their comments on the Report the following measures have been put in place:

· The report is available in the Government Gazette and on http://land.pwv.gov.za/

· A period of sixty (60) days will be given so that the public and stakeholders can read the report and provide their written submissions to the Department of Land Affairs or by e-mail: [email protected]

· A toll free number (0800 00 70 95) will be made available for people to call and submit verbal submissions.

· There is an abridged version of the report, which has been translated into all official languages for your convenience.

This launch is the first step in giving effect to Cabinet’s directives which is what we intend doing. Cabinet advised that the drafting team under the aegis of an interdepartmental task team be set up to give effect to recommendation number one, dealing with compulsory disclosure requirements for all past, present and future registration of titles, along the Financial Intelligence Centre Act (FICA) requirements by way of amending Regulation 18 of the Deeds Registries Act, 1937 (Act No. 47 of 1937) and the Deeds Registries Act itself.

Furthermore, Cabinet also advised that a permanent inter-ministerial departmental oversight committee consisting of at least the departments of Agriculture, Provincial and Local Government, Environmental Affairs and Tourism and Housing be set up to monitor trends in foreign land ownership and changes in land use and to recommend to Government appropriate corrective action.

Finally, Cabinet’s directives were that the rationalization and harmonization of land-use should be planning and zoning laws through the enactment of linking national legislation to provide some certainty, minimum standards and that order be prioritized. It is comforting to note that the Land Use Management Bill gives effect to this Cabinet instruction.

In this launch we therefore highlight Government’s call for all concerned to obtain and study the report and to provide constructive comment on the subject, so as to better inform Government’s resultant balanced policies and strategies.

I thank you.