ATC140311: Second Report of the Portfolio Committee on Rural Development and Land Reform [B54 – 2013] (National Assembly– sec 75), dated 11 March 2014.

Second Report of the Portfolio Committee on Rural Development and Land Reform [B54 – 2013] (National Assembly– sec 75), dated 11 March 2014.

The Portfolio Committee on Rural Development and Land Reform having considered the Property Valuation Bill [B54 - 2013] (National Assembly – sec 75), classified by the Joint Tagging Mechanism as a section 75 Bill and referred to it, reports the Bill with amendments [B54A – 2013] as follows:

The Portfolio Committee tabled a first report on an amended Property Valuation Bill to the National Assembly. The first Report was published in the Announcements Tablings and Committee Reports, on 27 February 2014.

On 6 March 2014, the National Assembly considered the amended Protected Valuation Bill and the Portfolio Committee’s report thereon and recommitted the amended Bill to the Portfolio Committee due to an omission to NA Rule 251(3 )( ii).

CLAUSE 1

1. On page 3, after line 32, to insert the following definitions :

"Chief Operating Officer" means the individual appointed as Chief Operating Officer in terms of section 10; "Constitution" means the Constitution of the Republic of South Africa, 1996;

2. On page 3, in line 35, to omit "includes" and to substitute "means".

3. On page 3, from line 35, to omit the definition of "market value" and to
substitute:

"market value" means the estimated amount for which the property should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion: Provided that in determining market value for purposes of section \2(\)(a), prices paid by the State for any acquisition of property must be excluded: Provided further that in the event that no other credible data is available, prices paid by the State for any acquisition of property may be considered;

4. On page 4, in line 7, to omit "and".

5. On page 4, in line 9, after "property;" to insert "and".

6. On page 4, after line 9, to add the following paragraph:

(c) a right in or to such property, including an unregistered right recognised and protected by law;

7. On page 4, from line 20, to omit paragraph (a) and to substitute:

(a) process of estimating the value for a specific purpose of a particular interest in property at a particular moment in time; and

CLAUSE 2 1.

1. On page 4, in line 37, to omit "this".

CLAUSE 6

1. On page 5, in line 14, after "Office" to insert "of the".

2. On page 5, in line 26, to omit "(e)" and to substitute "(d)".

PART 2

1. On page 5, in line 39, to omit "Deputy Valuer-General" and to substitute "Chief Operating Officer".

CLAUSE 8

1. On page 5, after line 48, to insert the following subsection:

(3) In the event of a vacancy in the position of the Valuer-General, the Minister must, subject to subsection (2), appoint an acting Valuer-General.

CLAUSE 9

Clause rejected.

CLAUSE 10

1. On page 6, in line 13, to omit "and Deputy Valuer-General".

2. On page 6, in line 21, after "officer" to insert "and the accounting
authority".

3. On page 6, in line 22, after "officer" to insert "and accounting authority".

4. On page 6, from line 26, to omit paragraphs (c), (d) and (e) and to
substitute:

(c) income and expenditure of the Office of the Valuer-General;

(d) assets and the discharge of all liabilities of the Office of the
Valuer-General; and

(e) proper and diligent implementation of the Public Finance Man­
agement Act.

5. On page 6, from line 33, to omit subsection (4).

NEW CLAUSE

1. That the following be a new Clause:

Appointment and Responsibilities of Chief Operating Officer

10. (1) The Minister must, subject to the provisions of the Public Service Act, appoint a Chief Operating Officer.

(2) The person appointed as Chief Operating Officer must be a
South African citizen and have sufficient experience and knowledge
relating to—

(a) public administration;

(b) public finance; or

(c) legal and constitutional matters affecting public administra ­
tion .

(3) The Chief Operating Officer is responsible for—

(a) the organisation, control, management, effective utilisation
and training of all staff;

(b) maintenance of discipline; and

(c) the performance of such powers and duties delegated to him
or her in terms of section 19 excluding a power or duty
relating to valuations.

CLAUSE 11

1. On page 6, from line 50, to omit paragraph (b) and to substitute:

(b) to assist in the conduct of a valuation may be a person with non-valuation qualifications, experience and competence, to the extent that such a person is necessary for assisting with any valuation.

2. On page 6, in line 54, after "valuer" to insert "and a person contemplated
in subsection (2 )( b)".

CLAUSE 12

1. On page 7, in line 4, after "12" to insert "(1)".

2. On page 7, after line 10, insert the following subsection:

(2) A written notice must be delivered to the owner or person in charge of a property that has been identified in terms of subsection (1), within seven working days of such identification.

CLAUSE 13

1. On page 7, from line 12, to omit subsection (1) and to substitute:

(1) When performing a valuation contemplated in section 12(1) ,
an authorised valuer may, subject to any legal rights—

(a) make extracts from documents, written or electronic records
or information;

(b) question any person about, any such document, written or
electronic record or information;

(c) require the owner, tenant or occupier of the property, or the
agent of the owner, to provide the authorised valuer, either in
writing or orally, with particulars regarding the property
which the authorised valuer reasonably requires for purposes
of valuing the property;

(d) direct a person to disclose, either orally or in writing, any
information that may be relevant for the valuation, and
question any person about such information relating to the
land or property;

(e) direct—

(i) a person to disclose information or to give answers to questions in terms of this subsection in writing or under oath or affirmation; or

(ii) that any such information or answers be recorded, relating to the property.

2. On page 7, after line 30, to insert the following subsection:

(2) When performing a valuation contemplated in section 12, an
authorised valuer must be in possession and on request produce
the identity card referred to in section 11(3).

3. On page 7, in line 31, to omit "(2)" and to substitute "(3)".

4. On page 7, from line 36, to omit subsection (3) and to substitute:

(4) An authorised valuer may not enter the property contemplated in subsection (3)—

(a) unless the owner or occupier of such property or such has consented thereto in writing, after being informed; or

b) in the event of such owner or occupier refusing or failing to grant consent contemplated in paragraph (a), the valuer may obtain a court order authorising such valuer to enter such property, including any building thereon, for purposes of conducting a valuation.

CLAUSE 15

1. On page 7, in line 53, after the first "must" to insert "within six months of
the date of the notice referred to in section 12(2) or such extended period as
may be approved by the Valuer-General on good cause shown.".

2. On page 8, in line 5, to omit "property and" and to substitute "property, ".

3. On page 8, in line 6, after "determined" to insert "and the methodology
utilised in determining the value. ".

CLAUSE 19

1. On page 8, from line 40, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

2. On page 8, in line 45, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

3. On page 8, in line 47, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

4. On page 9, in line 1, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

5. On page 9, in line 2, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

6. On page 9, in line 14, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

ARRANGEMENTS OF SECTIONS

1. On page 2, in line 7, to omit "this".

2. On page 3, in line 4, before "Valuer-General" to insert "Appointment of".

3. On page 3, in line 4, to omit "Deputy Valuer-General" and to substitute
"Chief Operating Officer".

4. On page 3, in line 6, to omit "Deputy Valuer-General" and to substitute
"Responsibilities of Valuer-General".

5. On page 3, in line 7, to omit "Responsibilities of Valuer-General and
Deputy Valuer-General" and to substitute "Appointment and Responsibili ­
ties of Chief Operating Officer".

6. On page 3, in line 26, after "title" to insert "and commencement".

PREAMBLE

1. On page 2, in third line, to omit "state" and to substitute "State".

2. On page 2, in the eight line, to omit "state" and to substitute "State".

The Committee reports further as follows:

During the processing of the Bill, the Democratic Alliance (DA) raised objections to the process and a number of provisions in the Bill as follows:

(i) On the first day of the clause by clause consideration of the Bill, the DA objected to the process because it wanted a list of amendments proposed by the Department when it responded to the public submissions received. However, the view of the majority was that the proposed amendments were documented in the report circulated and presented by the Department; these amendments would then be integrated into an A- list after the Committee has deliberated and agreed on them.

(ii) Clause 1 of the Bill defines land reform to mean “land redistribution, land restitution, land development, and tenure reform”. The DA proposed that the Bill should define “land development” to provide clarity. However, the majority accepted that land development, in terms of the International Association of Surveyors, is defined as building of new infrastructure, the implementation of construction planning and the change of land use through the planning permission and granting of permits. In addition, inclusion of the land development in land reform fits perfectly with the programmes like the Rural Infrastructure Development (RID) and the Spatial Planning and Land Use Management which are fundamental to post settlement support to ensure productive use of farms transferred to claimants and beneficiaries.

(iii) Clause 8(i) provides that the Minister (responsible for Rural Development and Land Reform) must, subject to the provision of the Public Service Act, appoint the Valuer-General. The DA objected to this clause. Alternatively, it proposed that the Valuer-General should be appointed through a parliamentary process and should report to the Minister of Public Works in order to ensure his/her independence. The view expressed by the DA suggested that if the Valuer-General was appointed by the Minister, there could be conflict of interest because he/she would be reporting to the same minister. The majority of Committee Members did not support the DA’s proposal. The primary role of the Valuer-General would be to value land reform related transactions and possibilities of voluntary valuations to other government departments. The majority further argued that this Bill is aimed at assisting to accelerate the pace of land reform and should avoid adding more tedious processes to delay land redistribution.

(iv) The DA further wanted guarantees to financial institutions because a just and equitable compensation may lie below market value. They argued that the failure of the Bill to cater for the cost of credit would have negative implications for food security and agricultural development. Therefore, its proposal was that government should guarantee the difference to credit providers where property was used as a security and where purchase price is below the market value. This view was rejected by the majority because the proposal was still trying to bring back the pure market-based land reform without consideration of section 25(3) of the Constitution.

(v) On 27 February 2014 the Committee concluded its process by considering the amendments in the B-list and verifying them against the A-list of the Bill. Having completed the processes to consider the Property Valuation Bill, the majority of the Committee Members voted in favour of the Bill with additional amendments. The Committee also agreed that the final version of the Bill would be circulated to all Members for approval before the supply of the copies to be presented to the National Assembly is requested, and in that process the DA participated as it registered that they were satisfied with the final version of the Bill. However, the DA requested the Committee to record that it reserved its right to vote in favour of the Bill.

The Portfolio Committee reports that the amended Property Valuation Bill is referred back to the House for decision.

Report to be considered.