REPORT OF THE PORTFOLIO COMMITTEE ON AGRICULTURE AND LAND AFFAIRS ON BUDGET VOTE NO. 29

The Portfolio Committee on Agriculture and Land Affairs, having considered budget vote 29, reports as follows:

1. INTRODUCTION

Department of Land Affairs derives its mandate from Section 25 of the Constitution of the Republic of South Africa Act, 1996 (Act 108 of 1996), which protects property rights while placing an obligation on the State to implement land reform. Therefore, the Department has the responsibility of providing access to land and extend rights in land, with particular emphasis on the previously disadvantaged communities.

The President, in his 2007 State of the Nation address, highlighted the slow land redistribution process called for an urgent review of the factors inhibiting this process, furthermore brought attention to the settling of outstanding of unsettled land claims of land redistribution. The President, furthermore called for the implementation of the Communal Land Rights Act in order to improve economic utilisation of communal land, while at the same time expanding assistance such as irrigation, seeds and implements to small and co-operative farmers.

On the 13th-27th March 2007, the, Department of Land Affairs and associated entities namely, the Khula Land Reform. Empowerment Facility; the Commission on Restitution of Land Rights, and the KwaZulu-Natal Ingonyama Trust Board tabled appeared before, the, committee to table their budgets and strategic plans for 2007/08 financial year as required by Treasury Regulations.

The Land Bank did not present their budget and strategic plans for 2007/2008 as they were not prepared.

Upon referral of the instruments by the National Assembly, the committee scheduled extended briefing sessions with the department and entities to present budgets and strategic plans for the coming financial year.

2. DEPARTMENT OF LAND AFFAIRS

The Director-General, Mr Glen Thomas assisted by programme managers presented 2007/08 budget and priority targets as relate to the strategic plan of the Department.

The following are the priority areas identified by the Department for the coming financial year:

· Transfer 3,1 million hectares, mainly through public private partnerships, in order to accerlerate and ensure sustainable land reform.

· Settle outstanding labour tenants claims, review legislation to provide farm workers and labour tenants with stronger rights to curb evictions, and address eviction hotspots through Proactive Land Acquisition Strategy (PLAS).

· Accelerate the finilisation of outstanding restitution claims and address some of the challenges facing the Land Claims Commission. The process will include the batching of claims with similar circumstances of dispossession, expropriating land in line with the provisions of the Constitution and section 42( e) of the Restitution Act (22 of 1994); and putting mediation and dispute resolutions in place.

· Collaborate with traditional leadership structures and co-operate with other successful partners to mentor successful claimants.

· Improve the accuracy and reliability of geo-spatial information to make it more accessible and usable by developing an integrated database of all fundamental geo-spatial information.

· Provision of efficient state land management that supports development.

The following are key priority programmes for the period 2006 to 2009 and targets for 2007/08:

Programme 1: Administration .

The programme provides strategic and logistical support through executive and corporate services. Allocation for 2007/08 to this programme amounts to R410 730 million compared to R333 309 million for 2006/07.

Programme 2: Surveys and Mapping

The programme provides national mapping, aerial photography and other imagery and. national control survey systems in support of national infrastructure and sustainable development. Provide professional. and technical services in support of land reform and other public services. Allocation for 2007/08 financial year to this programme amounts to R 100 311 million compared to R69445 million for 2.006/07.

Programme 3: Cadastral Surveys

The programme provides control of all cadastral survey and cadastral spatial information services. The allocation for the programme is R100 354 million compared to R86 357 million for 2006/07.

Program.me 4: Restitution

The programme takes responsibility for settling land restitution claims in accordance with the provisions of the Restitution of Land Rights Act (1994), and provides settlement support to beneficiaries. For 2007/08 financial year, allocation for this programme amounts to R3.3 billion compared to R2.01 billion for 2006/07.

Programme 5: Land Reform

The programme takes responsibility for providing sustainable land redistribution programmes, tenure security for all occupiers of land in South Africa, public land information, and the management of state land. Programme allocation for .2007/08 amounts to R1.6 billion compared to R800 000 million for 2006/07.

Programme 6: Spatial Planning and Information

Provides for national land use management, spatial planning and spatial information systems. For 2007/08 financial year, the allocation for the programme amounts to R3 756 million compared to R18 780 million in 2006/07.

Programme 7: Auxiliary and associated services

Takes responsibility for augmenting the registration of deeds trading account and for acquiring vehicles for departmental use and departmental capital works, and provide for a contribution to the Public Sector Education and Training Authority. Programme allocation for 2007/08 is R12 593 million compared to RIO 405 million for 2006/07.

Therefore, for 2007/08, the total allocation to the Department is R5.6 billion compared to R3.3 billion for 2006/07 and is figure is anticipated to raise to R5.9 billion for 2008/09.

COMMITTEE OBSERVATIONS.

The committee considered and welcomed the budget and raised concern with regard to the following:

a) The success of the proactive land acquisition strategy in acquiring land.

b) The role or local municipalities in the land reform process.

c) The relationship between the Land Bank and the Department

d) The ability of the Department to fulfilling its land reform target of 30% by 2014.

e) The implementation of the Communal Land Rights Ad

3.1 KHULA CREDIT FACILITY

Khula Land Reform Empowerment Facility is a Section 21 company that was formed by Khula Enterprise Finance Limited" in 2003 as mandated by the Department of Land Affairs, to advance money received from donors for the establishment of commercially viable projects on redistributed land.

Budget income for year 2007 amounts to R12.6 million and the operating expenses budget for 2007/08 amounts to R4.6 million.

For the coming financial year Khula intends to increase its loan capabilities by R40 million as well as increases its project numbers by 25%, with the majority of the loan funds being made available for agricultural projects, the balance of which being used to fund eco-tourism projects.

COMMITTEE OBSERVATIONS

The committee accepted the budget and the business plan for the ensuing financial year, requested Khula to consider the following issues:

a) Is Khula providing finance to the intended beneficiaries or providing finance to those persons who already have access to other finance institutions

b) The relationship between Khula and the Land Bank.

c) The relationship between "Khula and the MAFISA funding programme.

d) What is Khula doing to reform the slow service delivery in the Free State?

3.2 COMMISSION ON-RESTITUTION OF LAND RIGHTS

The Commission was established in terms of the Restitution Act, 1994 (Act No. 22 of 1994). The mandate is to provide equitable redress to victims of racial land dispossession. Provide access to rights in land, including land ownership and sustainable development; and to foster national reconciliation and stability. Improves household welfare under pinning economic growth and contributing to poverty alleviation.

In an attempt to meet' its 2008, deadline for the settlement of all land claims the Minister for Agriculture and Land Affairs Ms Lulama Xingwana has adopted project 'Gijima' to accelerate the settlement and finalisation of outstanding land claims.

The majority of the urban claims have been settled, whilst the majority of outstanding claims are rural claims. The Department reported a number of challenges that inhibit the finalisation of rural claims, however they have also developed strategies to overcome these challenges, these strategies include:

· The use of expropriation where negotiations fail

· Ensuring co-operative governance and obtaining by-in from all role players for a post settlement support framework.

· Strengthening the Commission's ability to engage with communities

COMMITTEE OBSERVATIONS

The committee considered the budget and the strategic plan for 2007/08, and expressed the fol1owing concerns:

a) The delays in the expropriation process

b) The capacitation of staff at this late stage of the land reform process.

c) The ability of the Commission to settle all land claims by the target date of 2008.

d) The availability of funds for the Commission to settle outstanding claims

e) The slow pace of the land restitution process.

3.3 KW AZULU-NA T AL INGONY AMA TRUST BOARD

The Ingonyama Trust was established in terms of the KwaZulu-Natal Ingonyama Trust Act, 1994 (Act No. 3 of 1994). The Act was amended by the National Act of 1997 (Act No.9 of 1997). Amongst other things, the KwaZulu-Nata1 Ingonyama Trust Amendment Act provided for the establishment of the Ingonyama-Trust Board. The core business of the trust; IS to manage its 2.7 million-hectares of land, spread throughout KwaZulu-Natal, for the material benefit and: social well being of individual tribe members

Ingonyama Trust Board fund "income comprises of income earned from Leases, Royalties and Investment income.1$e budgeted amount for 2007/08 is R18 219 210. R2351 600 of which comes from -the Board's own income from trading activities and the balance of which is a transfer payment received from the, Department of Land Affairs (Grant-In-Aid) voted funds.

In terms of the disbursement policy of the Board 90% of the income earned from trading activities is to be utilised for the benefit of the communities, and 10% of the income earned is to be retained for Board expenses.

COMMITTEE OBSERVATIONS

The Committee accepted the budget and the business plan for 2006/07 of the Ingonyama Trust Board, and raised the following issues:

a) The benefits from the privatisation of forests and the impact of that privatisation to communities.

b) The benefits of excision oftownships on Trust Land to local authorities.

c) In respect of commercial traders trading on trust land, do they pay more

and what happens to the building once their leases expire?

d) The impact of the Communal Land Rights Act on long term leases.

e) The ongoing rates claim dispute with the Ethikwini Municipality

CONCLUSION

a) For government to achieve the 30% distribution of land to the previously disadvantaged people by 2014, the pace of land reform must be accelerated.

b) For the financial year ending 31 March 2007, the Commission on Restitution of Land Rights (CRLR) targets to settle a total of 8 651 claims. While the process settlement of rural claims presented the Commission with various problems, the major challenge will be providing adequate support to land restored to restitution beneficiaries.

c) The target of the Commission is to ensure that al1 developmental plans are in place within six months of approval of claim by the Minister, of which, the Commission may not have the capacity to achieve this target.

RECCOMMENDATIONS: