MEC Themba Mthembu: KwaZulu-Natal Agriculture and Rural Development Prov Budget 2017/18

Budget Speech Address by Mr R. T. Mthembu on tabling of the Vote 3 Budget Policy Speech in the Provincial Legislature 4 May 2017

Honourable Chairperson  of the KZN Legislature Honourable Premier
Honourable Members of the Executive Council Honourable Members of the Legislature
House of Traditional Leaders Chairperson iNkosi Chiliza Amakhosi aseNdlunkulu
Amakhosi
District Mayors Local Mayors Councillors Political Leaders
Officials of KZNDARD & Entities
Distinguished Guests Stakeholders
Ladies & Gentlemen

Introduction

Honourable Chairperson,

In opening this budget Vote Speech, allow me to quote,

Edward Latiff and Ben Cousins in their 2004 paper titled, the Prospects for Small Holder Agricultural Production in South Africa, "Under colonialism and apartheid, settlers and settler states systematically undermined African agriculturalists and pastoralists, and imposed a model of large scale white owned commercial agriculture that still dominates the sector.

Indigenous producers were forcibly deprived, first of their land, then of their labour, and were later excluded from access to markets and various forms of state support.

White settlers benefitted from access to large areas of land at little or no cost and the succession of cohesive labour systems, from slavery to pass laws. In the 20th century in particular, the state assisted white farmers through massive investment in rural infrastructure, a wide range of subsidies and the regulation of key markets.

The result was a highly distorted agricultural sector, distorted both racially and by international standards, in its labour/capital ratios and its overall contribution to the economy ....

Since 1994 the economic policies adopted by the democratic government have done little to develop the small holder sector and may even have contributed to its long run decline.

The deregulation of commodity markets and the removal of most state support to the agricultural sector since 1990 have contributed to a climate that is exceptionally hostile to new entrants and to existing small holders wishing to expand production, Meanwhile the collapse of most state agricultural services-extension, ploughing and dipping services-in the former homelands since 1990 has further undermined existing producers.

Finally the land and agricultural reforms implemented by the democratic government since 1994 have had a minimal effect in terms of restructuring existing white commercial farming or developing existing black smallholders."

The above quote tacitly sums up the historical legacy of colonialism and apartheid and its impact on our current challenges in all spheres of life, particularly in the agricultural sector. It also explains the reason behind the call for Radical Economic Transformation in our country, hence the conception of the Radical Agrarian Socia Economic Transformation Programme (RASET).

Honourable Chairperson,

The question we need to aggressively confront is why, despite a massive redistribution programme over the past 23 years, do our crisis levels of unemployment, poverty and inequality persist.

In answering this question we will also respond to the main question addressed in this budget speech; What do we mean/and why do we need Radical Socia Economic Transformation?

The key reasons of this intervention, is that with all governments achievements, the key limitations since 1994 have been two-fold.

1. There has been socio-economic Re-distribution but insufficient structural transformation particularly of the systematic features of our productive economy.
2. Further, this redistribution effort has almost been entirely conceptualized as  a top-down state delivery process. Full speech... [PDF]
 

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