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STATE OF THE NATION ADDRESS (2005): IMPLICATIONS FOR THE SELECT COMMITTEE ON LAND AND ENVIRONMENTAL AFFAIRS (CLUSTER INCORPORATING AGRICULTURE, ENVIRONMENTAL AFFAIRS AND TOURISM AND WATER AFFAIRS AND FORESTRY)

16 February 2005
We also highly appreciate the oversight role as well as the direct contribution in the crucible of actual implementation of our public representatives in all the three spheres of government. We are confident that Honourable Members will persist in this sphere to the people, so as to improve our work, all-round. (President Thabo Mbeki, State of the Nation Address, 11^th of February 2005)

1. Introduction

The quote above succinctly captures the important oversight component of the work of the Honourable Members of Parliament during committee meetings, public hearings, oversight visits, debates in the Houses, budget and legislative processes, Taking Parliament to the People and constituency work. In the South African Parliament, committees are increasingly becoming visible in the process of finding innovative solutions to the challenges facing South Africa. Parliamentary committees oversee the activities of government departments, statutory bodies, state-owned enterprises and various other forms of social and economic activity.

In light of the statement made on the crucial role of the Honourable Members of Parliament in oversight, the Select Committee on Land and Environmental Affairs (hereinafter referred to as the Select Committee), has over the years, tracked the legislative and implementation process of various government programmes in its cluster. However, 2004 and 2005 has begun the shift in focus with an increased emphasis on oversight to gauge the progress, achievements and challenges confronted in delivery targets.

This paper will focus on the following key components highlighted in the 2005 and 2004 State of the Nation Address:

2005 strategic objectives identified by the President for the sectors within the Select Committee cluster.

Implications of the above for the Select Committee.

Focus on the strategic objectives of the 2004 State of the Nation address.

Implications of the 2004 State of the Nation address for the ongoing work of the Select Committee.

Conclusion.

2. 2005 State of the Nation Address Targets

The President’s State of the Nation Address serves as a framework for government’s programmes to ensure that it delivers upon its contract with the people for that financial year, as well as for the government’s current term of office. It provides a useful forum in which the President identifies key strategic objectives to address the fundamental and basic rights of the citizens of the country as enshrined in the Constitution of the Republic of South Africa, Act 108 of 1996.

The following issues pertinent to the work of the Select Committee were highlighted in the 2005 State of the Nation address:

Land and Agricultural Issues:

Business plans for the Agricultural Scheme have been approved. Will ensure that it becomes operational within the next three months, with the capital of R1 billion already allocated. This scheme forms part of the broader small and micro-credit initiative, to enable those formerly excluded the opportunity to access credit for productive purposes.

In addition, R100 million has been transferred to provinces for the implementation of the farmer support programme.

The Bill on Cooperatives has been submitted to Parliament for finalisation.

Allocate additional resources over the next three years to cover outstanding claims in the land restitution programme.

Water Affairs

Ensuring the provision of clean running water to all households by 2008.

Improve the capacity of municipalities to ensure that the target of providing sanitation to 300 000 households per year is met. The targeted timeframe is 2007.

Implications for the work of the Select Committee:

To invite the Department of Agriculture to brief the Select Committee on the details of the business plans for the Agricultural Scheme. The details must provide information on the beneficiaries, the criteria used, the implementation, the monitoring and evaluation of the scheme, etc.

Provincial departments to provide written submissions on the manner in which money allocated for the implementation of the farmer support programmes will be utilised.

To invite the department to give an input on the numbers of outstanding claims in the land restitution programme and to provide an input on how additional funding will be utilised.

Invite the relevant stakeholders to give a background of the 1981 Co-operative Act, which still caters for the registration of agricultural cooperatives.

To provide an input on the need to review the aforementioned Act and its implications for the agricultural sector.

To conduct oversight visits, in conjunction with the Select Committee on Local Government, to assess the capacity of municipalities to attain the target of ensuring basic services to 300 000 households per year is met.

To invite the established project team that will coordinate the land and agrarian reform to input on the policy (if any), terms of reference and framework in which their work will be undertaken.

3. The 2004 State of the Nation address and its implications for the ongoing work of the Select Committee

During the State of the Nation address on 6 February 2004 and at his first annual address to the Third Parliament on 21 May 2004, President Thabo Mbeki set out details of the Government’s programme for 2004. With regard to Land Affairs and Agriculture and Water Affairs and Forestry, the following priorities were identified:

Land and Agricultural Issues

To re-establish the Agricultural Credit Scheme (ACS) in the Department of Agriculture.

To provide capital to increase support to agricultural activities in the communal land areas as well as other small-scale agriculture.

To leave the Land Bank to deal with the commercial sector.

To make R1 billion immediately available to start the scheme.

To work with financial institutions to implement the provisions in the financial services charter relevant to the development of small-and-medium farming enterprises.

To accelerate sectoral initiatives including the comprehensive farmer support programmes and tourism enterprise programme.

To ensure the implementation of the Land Reform for Agricultural Development (LRAD) and the Comprehensive Agricultural Support Programme (CASP).

To monitor the economic uitlisation of communal land.

To focus on the Broad-Based Economic Empowerment Framework for Agriculture (AgriBee).

The Bill on Co-operatives to be submitted before the end of 2004.

The Government to finalise the strategy for the development and extension of financial and non-financial support to co-operative enterprises.

Engage the export sectors to assist them to take full advantage of the possibilities to expand access to the European Union (EU), and the United States markets, as a result, respectively, of the SA-EU Trade and Development Agreement and AGOA.

Project team comprised of DoA, DLA and DPLG to be established to coordinate land and agrarian reform.

Water Affairs and Forestry

To ensure that within the next five years, all households would have easy access to clean running water.

During the current year, more than 300 000 households will be provided with basic sanitation.

To ensure that by December 2004, through programmes undertaken by the Department of Water Affairs and Forestry (DWAF). Government will provide clean and potable water to the 10^th million South African since 1994.

Environmental Affairs and Tourism

Accelerate the development and implementation of support strategies for priority sectors.

Resolve political blockages on some Spatial Development Initiatives.

Implications for the ongoing work of the Select Committee

Land and Agricultural Issues

Assess the rate at which the financial system can offer financial services, which are more accessible, relevant and responsive to farmers and agribusiness.

The Committee invites the relevant financial stakeholders, such as the Micro-Agricultural Financial Scheme for South Africa (MAFISA), Land Bank and other relevant financial stakeholders. The aim of this input would be to provide reports and monitor the manner in which these programmes in place, meet the objectives contained within the Presidential announcements.

Monitor delivery, progress and the impact of financial services to farmers during oversight visits.

To track the progress made in the implementation of LRAD and CASP.

To monitor the emergent problems encountered with communal land rights issues, from recipients to the Department of Land Affairs.

To undertake an oversight visit to 1 or 2 communal land rights projects to gauge the extent to which agricultural development or economic utilisation is in place.

To monitor the establishment of the principles and implementation of the AgriBEE framework.

To monitor and assess the guiding principles and targets for broad-based black empowerment in agriculture.

To monitor and assess the scope of the AgriBEE framework, which covers the entire value chain in agricultural and related industries from farms to the consumer ‘plate’. This includes all economic activities relating to the provision of agricultural inputs, farming processing, distribution, logistics and allied activities that add value to farm products.

Invite the relevant stakeholders to give a background of the 1981 Co-operative Act, which still caters for the registration of agricultural cooperatives.

To provide an input on the need to review the aforementioned Act and its implications for the agricultural sector.

Water Affairs and Forestry

To invite stakeholders to provide input on the progress made with regard to accessibility of clean water to all households.

To conduct further oversight visits to all 9 provinces to follow up on this issue.

4. Government’s Programme of Action – Interim Update Regarding Activities with Deadlines due to Expire in November and December 2004

Economic Cluster

Main Activity	Lower cost structure in the economy and enhanced levels of competition
Actions	Departments	Timeframe	Progress
Finalise institutional framework to manage the national water infrastructure within six months.	Department of Water Affairs and Forestry	November 2004	Cabinet approved the National Water Resource Strategy in September 2004, and implementation has begun.
Main activity	More enterprises especially black-and-women owned and managed
Publish for public comment a Broad-Based Economic Empowerment Framework for Agriculture.	Department of Agriculture	July 2004	The AgriBee framework was launched on the 26 July 2004.
Establish Black Economic Empowerment (BEE) Advisory Council to advise on implementation of BEE strategy.	Department of Trade and Industry. Department of Environmental Affairs and Tourism.	As soon as possible.	Cabinet agreed that the appointment of the Council should await the finalisation of the BEE codes, which have been published for comment.
Re-establish the Agricultural Credit Scheme (ACS) in Department of Agriculture to provide capital for this sector, leaving the Land Bank to deal with established commercial sector. R1 billion is immediately available to start the ACS.	Department of Agriculture.	As soon as possible.	Cabinet Memorandum to seek approval of the Scheme has been submitted to the Cabinet.
Bill on Cooperatives and implement cooperatives strategy.	Department of Trade and Industry. Department of Agriculture.	December 2004.	Bill approved by Cabinet for submission to Parliament. On the 25 August 2004, the Department of Trade and Industry presented an overview for background purposes on the Cooperative policy and bill.

International Relations, Peace and Security Cluster

Main Activity	Consolidation of the African agenda
Actions	Departments	Timeframe	Progress
Sustainable development and poverty alleviation through the New Partnership for Africa’s Development (NEPAD).	Department of Foreign Affairs All departments.	Ongoing	Ongoing

Social Cluster

Main Activity	Meeting the increasing challenge of housing and human settlement
Actions	Departments	Timeframe	Progress
Provide clean and potable water to the 10^th millionth South African since 1994.	Department of Water Affairs and Forestry.	December 2004	On 12 November 2004, the 10^th millionth recipient of clean and potable water was celebrated in the Northern Cape.

5. Government’s Programme of Action – February 2005 Update

First Economy

Main Activity	Manufacturing and services sectors that are growing and creating jobs, increasing value-add, meeting basic needs, competing globally.
Actions	Departments	Timeframe	Progress
Accelerate the development and implementation of support strategies for priority sectors.	Dti, NT, DEAT	2004, generating R18	The Tourism Global Competitiveness Project outcomes were presented to Cabinet in October. Domestic tourism growth strategy launched at Indaba 2004 and the marketing campaign rolled out in June
Main Activity	Do more to improve our export performance, focusing on services and manufactured goods.
Actions	Departments	Timeframe	Progress
Engage the export sectors to assist them to take full advantage of the possibilities we have to expand access to the EU and the US markets, as a result, respectively, of the SA-EU Trade and Development Agreement and AGOA.	dti, DoA, DME.	Ongoing	National export strategy being developed and will be ready by April 2005. market access information strategy for EU and USA to be finalised in first quarter of 2005/06 financial year.
Main Activity	More enterprises, especially black-and women-owned and managed.
Actions	Departments	Timeframe	Progress
Establish BEE Advisory Council to advise on implementation of BEE strategy.	Dti, DEAT	As soon as possible.	The composition of the Council will be finalised during 2005.
Re-establish the Agricultural Credit Scheme (ACS) in DoA to provide capital for this sector, leaving the Land Bank to deal with established commercial sector. R1 billion is immediately available to start the ACS.	DoA	December 2004.	Agricultural Credit Scheme (ACS) memo approved by Cabinet as submitted and the business plan approved.
Accelerate sectoral initiatives including the comprehensive farmer support programmes and tourism enterprise programme.	DoA, DEAT.	Ongoing.	MTEF funding of R37m by DEAT with effect from July 2004, including a tourism entrepreneurial training programme. CASP budget of R200m for 2004/05 transferred to provinces for on-and-off farm infrastructure projects.
Project team compromising DoA, DLA and DPLG to be established to coordinate land and agrarian reform.	DoA, DLA, DPLG.	Ongoing.	Project team established to coordinate land and agrarian reform.
Bill on cooperatives and implement cooperative strategy.	dti, DoA.	December 2004.	Bill approved by cabinet in November 2004. Bill has been submitted to Parliament in February 2005 and has been introduced in the National Assembly as a section 75 Bill.
Main Activity	More equitable geographic spread of economic activity
Resolve political blockages on some Spatial Development Initiatives	dti, DEAT	Ongoing.	Ongoing discussions with counterparts in the SADC region to conclude process.

Second Economy

	Develop an integrated cluster strategy to intervene in the second economy incorporating currently uncoordinated existing initiatives including the following:
Launch Expanded Public Works Programmes in all provinces, concentrating on the 21 urban and rural nodes.	DPW, DPLG, DSD, DoH, DEAT	September 2004.	EPWP launched in all provinces by September 2004. 12 235 jobs in environment and culture sectors in 1^st quarter (not final). R1.5 billion spent; 1 459 EPWP projects; 76 000 job opportunities.
Implement Land Reform for Agricultural Development process and Comprehensive Agricultural Support Programme.	DoA, DLA.	Ongoing.	Development of sub-sector strategies for wine, grain and fruit underway. MTEF funding of R37m by DEAT with effect from July 2004, including a tourism entrepreneurial training programme. CASP budget of R200m for 2004/05 transferred to provinces for on-and-off farm infrastructure projects.
Publish AgriBEE for public comment.	DoA.	July 2004.	Stakeholder discussions are continuing, the inputs to be consolidated following the December 2004 closing date.
National and Household food security.	DoA, DSD, DEAT.	Ongoing.	Cotton and livestock strategies completed: wine, grain and fruit under way.
Job opportunities along the entire agricultural value chain.	DoA.	Ongoing.	Cotton and livestock strategies completed. Wine, grain and fruit under way.
Increased income from agricultural activities.	DoA.	Ongoing.	The implementation of the Agricultural Credit Scheme will benefit the agricultural sector.
Increase support to agriculture in communal areas and other small-scale agriculture, drawing on the resources of the ACS.	DoA.	Ongoing.	The implementation of the ACS will benefit the agricultural sector.
The Communal Land Rights Act will improve the possibilities for better economic utilisation of communal land.	DLA, DoA.	Ongoing.	Implementation strategy for Communal Land Rights Act being finalised.

6. Conclusion

In May 2004, the President set out the Programme of Action of government to achieve higher rates of economic growth and development, improve the quality of life of all people, and consolidate social cohesion. The 2005 State of the Nation Address seeks to ensure continuity in the Programme of Action of government outlined by the President in 2004. The Address highlights government’s commitment to build upon the achievements of last year and those of the past 10 years of democratic government. It seeks to assist government to reaffirm and renew their efforts to take the detailed practical steps outlined by the President in 2004.

The challenge for the Select Committee therefore is to strengthen and improve their oversight functions in relation to the objectives highlighted in the 2004 and 2005 State of the Nation addresses respectively. Utilising this process is also a valuable tool for Members of Parliament in providing strategies and recommendations to various State organs and other stakeholders on achieving the following key priorities of Government as the country enters a Second Decade of Freedom:

Moving forward decisively towards the eradication of poverty and underdevelopment in South Africa, and taking care to enhance the process of social cohesion.

Achieving further and visible advances with regard to the improvement of the quality of life of all people, affecting many critical areas of social existence, including health, safety and security, moral regeneration, social cohesion, opening the doors of culture and education, and sport and recreation.

Successfully addressing the important challenges of persisting racial and gender inequalities, the disempowerment of youth and people with disabilities, and proper care for children and the elderly.

Focusing on the growth, development and modernisation of the First Economy.

Responding to the challenges posed by the Second Economy, which economy constitutes the structural manifestation of poverty, underdevelopment and marginalisation in South Africa.

Ensuring that the public sector discharges its responsibilities to the people as a critical player in the process of the growth, reconstruction and development of the country.

Focusing especially on raising skills levels within the public sector, and ensure its managerial and technological modernisation, driven by a clear understanding of the development tasks of the democratic state.

Strengthening South Africa’s system of local government.

Further integrating the country’s system of governance, responding effectively to the requirement for cooperative governance.

Consolidating the practice of creating public-private partnerships and building government-civil society cooperation.

Ensuring that the system of traditional government plays a role ascribed to it in the country’s Constitution and legislation.

Building the sense of national unity, united action and the new patriotism.

Mobilising all the people of South Africa voluntarily to act together to achieve the tasks of reconstruction and development.

Responding to the diverse political, economic, social and technological challenges of the process of globalisation.

Continuing to work towards the regeneration of Africa.

Helping construct a new world order that is more equitable and responsive to the needs of the poor of the world, who constitute the overwhelming majority of humanity.

The President further indicated that at the core of Government’s response to all these challenges and priorities, the struggle against poverty and underdevelopment as the country enters the third term of democracy rests on three pillars. These are:

Encouraging the growth and development of the First economy, and increasing its possibility to create jobs.

Implementing Government’s programme to address the challenges of the Second Economy.

Building a social security net to meet the objective of poverty alleviation.

References

State of the Nation Address, 2005: An oversight tool for Members of Parliament, draft paper on the State of the Nation Address, 2005, An oversight tool for Members of Parliament, compiled by the Parliamentary Research Unit, 11 February 2005.

State of the Nation Address, 2005.

Government’s Programme of Action, updated February 2005, sourced at http://www.info.gov.za