Report of the Portfolio Committee on Agriculture and Land Affairs on Pretoria Visit to Agriculture and Land Affairs, dated 17 September 2002:
The Portfolio Committee on Agriculture and Land Affairs, having visited the Department of Agriculture and the Department of Land Affairs and their parastatals in Pretoria from 29 July to 2 August 2002, reports as follows:
A. Background and objectives The Committee, having visited the Departments of Agriculture and of Land Affairs and its institutions at the beginning of the year (14 to 18 January 2002), unanimously agreed at its last meeting of the second term to undertake another visit to Pretoria.
The main objectives were:
1. To provide members with insight into the activities of the two Departments and their institutions at national level.
2. To monitor and assess progress made by the Departments and their bodies since the January visit. The Committee also proposed information sessions to engage the Departments on specific issues.
The delegation, under the leadership of the Chairperson, Mr N H Masithela (ANC), comprised of Dr E A Schoeman (ANC), Ms B M Ntuli (ANC), Ms O R Kasienyane (ANC), Ms N F Mathibela (ANC), Mr L J Modisenyane (ANC), Bishop M S Mogoba (PAC), Mr Z Kotwal (ANC), Mr M A Maphalala (ANC), Mr P H K Ditshitelo (UCDP), Mr D K Maluleke (DP), Mr G B Bhengu (IFP), Mr N W Mudau (ANC), Adv S P Holomisa (ANC), Mr J Ramrock (Committee Secretary), Mr S Makeleni (Committee Assistant), Mr A N Mthombeni (Parliamentary Officer) and Ms V Dlaku (Departmental Official).
B. Workshop on biotechnology The meeting was attended by the Minister for Agriculture and Land Affairs, Ms Thoko Didiza, with the Director-General: Agriculture, Ms B Njobe, who clarified the position of the government with regard to biotechnology. The Minister spoke of policy directions and challenges ahead in dealing with biotechnology issues in South Africa, the region and the continent. She reminded members of the pivotal role the agriculture sector plays in the economy of the country. South Africa is the only country in the region with a grain surplus.
The Director-General provided background on the Genetically Modified Organisms Act, 1997. There was agreement on a common approach and view that biotechnology was necessary. It was noted that people confronted with poverty and hunger, especially those in rural areas, do not have the luxury to choose between genetically modified and organic food.
Mention was made of experiences and benefits gained by countries in Asia during what was called the "Green Revolution". At present there are talks of a second one, this time worldwide.
Officials from Departments like Health and Arts, Culture, Science and Technology also made presentations. Members of the Portfolio Committees on Health and on Arts, Culture, Science and Technology participated in the workshop.
C. Policy options for Biotechnology Development in SA The Director for Genetic Resources, Dr Moephuli, made a presentation on policy options for Biotechnology Development in South Africa. He spoke about the challenges facing the country in dealing with biotechnology. South Africa has only 15% arable land, and a large rural sector. With an increasing population, the demand for food will become greater, resulting in reduced per capita natural resources and a declining fish population. Dr Moephuli also addressed members on National Imperatives, regulation of genetically modified organisms and trade policy on biotechnology.
Discussion points (a) Extent of research conducted by government on biotechnology and investments.
(b) Ethical and moral sides of biotechnology with regard to food security.
(c) Clarity on impact of Intellectual Property Rights to the poor.
(d) Clarity on known side effects of GMOs.
(e) Extent of awareness to public on benefits of GMOs.
(f) Clarity on arguments advanced by anti-GMO groupings.
(g) Political implications for GMOs.
1. Food control An official from the Department of Health, Ms F W Jansen van Rijssen, made a presentation on food control issues. She focused on:
* Interaction of Department with other affected Departments
* Food from GMO
* Definitions of GMO
* Foodstuffs, Cosmetics and Disinfectants Act, 1972, and its regulations
* Consultations
* Labelling
* SA's position on mandatory and voluntary labelling
* Context of "GMO-free" foods.
Discussion points (a) Labelling cost distortions and labelling segregation, which could cause "class" divisions among consumers.
(b) Compromise of food safety as a result of usage of analytical methods that are not reliable.
(c) Capacity to evaluate number of GMOs and evaluation of whether some were rejected because of health reasons.
(d) Labelling of products that undergo processing, and how to keep trace thereof until it becomes final product.
2. National Biotechnology Strategy for SA An official from the Department of Arts, Culture, Science and Technology, Ms M Pyoos, gave a perspective on the National Biotechnology Strategy for South Africa. The presentation focused, amongst others, on the background and objectives of the strategy, National Development Imperatives and the Implementation Framework. He also spoke about the Intellectual Property Rights Policy and what gave rise to it.
Discussion points (a) Explanation of 14% not supportive of GMOs in participation processes as organisations or individuals.
(b) Structuring of Science Budget Vote for research and development.
(c) Challenges for capacity-building of young science students.
(d) Room for strengthening research and development strategy.
(e) SA does not generate patents, resulting in dependency on other countries.
Resolutions (a) Need to have clear approach of communicating GMOs issues to public.
(b) Challenge of mandatory labelling would require capacity and therefore makes voluntary labelling an option as well.
(c) Convincing arguments on benefits of GMOs are essential, as no GMO crops currently available have any side effects.
(d) GM-produced food is as safe as food produced otherwise (according to the scientific presentation).
(e) The need to distinguish GM foods and biotechnology.
(f) Regulatory processes to prevent human cloning.
(g) Acknowledgement of political and technical aspects of biotechnology. Passage of GMO Act by Parliament was a case in point of political will. Recent Zimbabwe rejection of GM-food aid from USA indicates that more research and awareness are needed.
(h) Three South African non-governmental organisations that are anti-GMO must be engaged for clarity on their position.
(i) Discussions in respect of GMOs at interdepartmental level are encouraging and should continue.
(j) Strong need for research to produce vaccine against polio in SA to limit dependency on other countries.
In concluding the discussion, the issues of ethics and moral as well as the communication aspects were dealt with to cover some of the questions posed during the presentations. An understanding was reached that the ethics and morale debate is a life debate and a world-wide phenomenon.
D. Land Bank The CEO of the Land Bank, Mr Fandeso, gave the delegation a progress report. Some of the points he covered, included:
1. Update on the Strategic Plan for South African Agriculture. The Bank had 20 farms and sold 19 to black commercial farmers.
2. Development book, which targets loans to poor rural individuals.
3. Skills and capacity building.
4. Alliance and partnership. The Bank has a pilot youth farm project. An agreement has been reached with the National Youth Commission, involving four farms.
5. Funding. The Bank has a Skills and Development Fund that offers bursaries to students from previously disadvantaged communities. More than 20 students are benefitting from this at present.
6. Equitable access and participation strategy. The Bank established "Mobile Banking" facilities in rural areas, thus reaching many poorly resourced communities.
Discussion points (a) Extent of coverage of flood relief programme, for example in fire damaged areas.
(b) Farms to be managed by National Youth Commission.
(c) Proposed amendment to Land Bank Act.
(d) Spreading of satellite operations.
(e) Relationship between ABSA and Land Bank on assistance to farmers.
(f) Down-grading of Bank (concern over the recent Constitutional Court case).
(g) Development of programme for mobile banking.
(h) Land Bank programmes with Agri-Bank.
(i) Extent of Agri-SA assistance to (10) projects for emerging farmers.
(j) How does Bank market itself?
E. Workshop on Agricultural International Trade 1. This was presided over by the deputy director general of Agriculture, Ms Njabulo, with Ms Vangile Titi as co-chair.
2. Ms Vangile Titi presented a framework for bilateral and multilateral engagements.
F. NEPAD Ms M Nduli presented a document entitled "Towards implementing NEPAD". The focus areas of the presentation were:
* Challenges
* NEPAD priorities
* Key processes to date
* Focus on agriculture
* Future processes.
African Heads of State have selected agriculture, one of the high priority sectors for future investment, in view of it being the largest contributor to GDP and employment in most African countries. This will require, among others, increased productivity, market access and competitiveness of the agricultural sector. NEPAD will focus on six major constraints hindering progress in African agriculture:
1. The problem faced by rural population in getting access to markets and resources required for investment in agriculture relative to people living in urban areas.
2. Inadequate and inefficient agricultural systems.
3. Low purchasing power of rural people.
4. Climate uncertainty and lack of access to irrigation.
5. Weak institutional support (e.g. research and extension services).
6. Inadequate attention by donors and multilateral institutions to the agricultural sector.
The NEPAD goal is an agriculture-led development that eliminates hunger and eradicates poverty and food insecurity, thereby opening the way for expansion of exports and trade, putting the continent on a higher economic growth path within an overall strategy of sustainable development and preservation of the natural resource base.
Discussion points (a) Communication of NEPAD issues to rural masses.
(b) Government subsidy to agriculture to realise NEPAD goals.
(c) Mechanisms of developing our rural areas.
(d) Role of MPs relating to international trade agreements.
(e) Subsidies to farmers.
(f) Landholding systems for rural areas.
(g) Readiness of commercial farmers to compete globally.
(h) Need for development of agricultural products - strengthening of agri-processing.
(i) Equity transfer of agricultural skills in SA.
(j) Using NEPAD as vehicle for development of SA.
G. National Trade Policy Mr Francis Moloi, representing the Department of Trade and Industry, spoke on the SA Trade Strategy. His presentation focused on:
1. Multilateral strategy.
2. Areas of negotiation (agriculture included).
3. Possible areas of negotiation and possible areas of "new" negotiations.
4. Doha development agenda and its challenges.
5. Bilateral trade relations.
6. Africa and NEPAD.
7. Tools for multilateral strategy.
Discussion points (a) US farmers' subsidy.
(b) Doha Development Agreement.
(c) Transparency in negotiations.
(d) Lack of capacity in negotiation.
(e) Dumping issues.
(f) Market access.
H. Agricultural trade strategy Ms Ezra Steenkamp gave an overview of SA's agricultural trade strategy, the trends in SA trade, SA trade from 1988 to 2000 (imports and exports) and trends in world trade.
1. EU/SA Trade, Development and co-operation agreement Mr Reuben Moekwena addressed the Committee on the EU/SA Trade, Development and cooperation agreement. He outlined the main features of the agreement, agricultural tariffs and agricultural tariff quotas, implementation progress, issues under discussion by the Joint Co-operation Council, EU enlargement and agricultural trade trends between SA and the EU.
90% of trade between SA and the EU is duty-free.
70% of agricultural trade between SA and the EU will be duty-free after 12 years.
2. Wine and Spirits Agreement Mr G Muller, Deputy Director, made a presentation on the WTO Wine and Spirit Agreement. He informed the delegation that the agreement negotiations started in 1994 and was only concluded early this year.
3. SA/Mercosur Free Trade Agreement The SA/Mercosur Free Trade Agreement was outlined to members. Areas covered included existing trade relations, history of the agreement, government views and the proposed Department of Agriculture's approach to upcoming negotiations.
Discussion points (a) Levelling playing field regarding farmers protection
(b) Incentives for export
(c) Liberalised economy
(d) Impact of job creation caused by trade agreements.
Resolution In view of the ensuing discussions, it was resolved that a full-day workshop be convened in mid-October to deal specifically with issues of international trade and agreements. The workshop will need to unpack issues of equity and growth, production policy, farmers' subsidies, service delivery and fragmentation issues.
I. World Summit on Sustainable Development (WSSD) Ms Nduli, Deputy Director-General: Agriculture, gave an update on progress made by the Department in preparation for the forthcoming WSSD. She mentioned that one of the main activities of the Department was the development of a draft policy document on "Agriculture in Sustainable Development", together with a 10-year action plan and a "Farmers' Charter".
J. National Marketing Council (NAMC) The Chairperson of the NAMC, Mr Rathogwa, with the assistance of fellow council members, made a broad presentation on domestic marketing of agriculture. Out of the 14 original boards, only six remained (e.g. citrus, deciduous fruit, maize, winter cereals and wool), and the validity of the schemes extended to July 2003. The reason for the extension was to enable respective liquidation committees to finalise outstanding issues related to levies and asset ownership.
Discussion points (a) Lack of apparent progress since last visit.
(b) Fragmentation issues.
(c) Merger between farmers' unions.
(d) Communication of market access issues by Council to constituencies.
(e) Database of producers at grassroots level.
(f) Identity crisis and transformation issues.
(g) Advisory role of Council to Ministry.
The Chairperson of the Committee ruled that the Department and the NAMC would be invited to address the Committee on some of the concerns raised. The Minister for Agriculture and Land Affairs will also be asked to attend.
K. Agricultural Research Council (ARC) - Onderstepoort Veterinary Institute The delegation visited the ARC's Onderstepoort Veterinary Institute, where they met with and was addressed by the President of the Institute, Dr Tau-Mzamane, and some management members.
Dr Tau-Mzamane's briefing focused on:
1. History of Institution.
2. Challenges.
3. Vision and mission.
4. Research goals.
5. Previous and current structures.
6. Role of ARC in agricultural development.
7. Challenges of employees' reward system.
L. Briefing on importance of livestock, with emphasis on export potential and reaching out to rural areas
Discussion points (a) Building maintenance.
(b) Sources of funding and related constraints.
(c) Brain-drain and ageing scientists.
(d) Strategy to extend research to vast areas of SA.
M. Plant Protection Research Institute Members visited the Institute at Roodeplaat. Dr M Molope welcomed them and made a formal presentation together with other members of management. The presentation broadly covered:
1. Views about agriculture.
2. Role of agriculture in economic development.
3. Agricultural scientists and bureaucrats.
4. Redefining role of ARC in agriculture.
5. Competition in respect of land.
6. Climatic problems (snow, droughts, etc).
7. Risk management technology.
8. Climate and global market.
9. Broader economic, social and environment challenge.
10. WSSD.
11. Public support service.
Dr Helmuth Zimmermann of the Weeds Research Unit lent perspective on alien invasive plants, funding sources, their clients, achievements and reasons for loss of capacity.
Discussion points (a) Revitalisation of irrigation canals.
(b) Need for indaba on productive capacity of natural resources.
N. Department of Land Affairs Dr P Mayende, Director-General: Land Affairs, and other management officials, welcomed members and made a formal presentation on the quarterly review (1 April to 30 June 2002). The presentation also included targets set and reached in respect of the redistribution programme.
Discussion points (a) 1999 policy review.
(b) Communal land rights Bill.
(c) Percentage of delivery sentiments.
(d) 87% and 13% land ratio.
(e) 77 farms acquired by Land Bank.
(f) Land ownership by foreigners.
O. Deeds Office Mr Slothouber, Chief Registrar, presented the Deeds Offices' work-flow countrywide, including archives, organisational structure, gender and racial balance of personnel and history and registration volumes.
Committee request Submission of break-down of personnel ratio in terms of race, gender, etc.
P. Surveyor-General Mr A van den Berg, Surveyor-General, presented the work-flow and development process of the Office, its vision and mission and strategic objectives, as well as its historical background.
Q. Land Claims Commission The Chief Land Claims Commissioner, Adv Wallace Mgoqi, gave a brief account of the quarterly review of the Commission. He expressed the need for qualitative settlement (which the Commission is doing at present), which must include sustainability. The Commission is working jointly with the Land Bank and the Development Bank in trying to achieve this.
R. Conclusion The Committee values this form of interaction with stakeholders, because it is both necessary and productive, and it forms part of the Committee's oversight role. The Committee believes, from what was observed, that the Departments of Agriculture and of Land Affairs are pursuing the right directions, and that they should be commended for their achievements.
The Committee notes in particular the significant progress made by the Land Claims Commission in the processing of land claims.
The Committee expresses its sincere appreciation to the Minister for Agriculture and Land Affairs, Thoko Didiza, the Deputy Minister, Adv D du Toit, the Director-General: Agriculture, Ms B Njobe, the Director-General: Land Affairs, Dr P Mayende, heads of the institutions visited and the various officials, for the support and hospitality accorded to the delegation and for contributing to the success of the visit.