farmers affected by fires in Overberg
21 February 2006
One of the consequences of devastating fires, which raged from 1 to 4
February 2006 in the Overberg over approximately 46 000 hectares, is the total
destruction of mainly veld and fynbos in the conservation areas.
This led to extensive damage to the wild flower industry and especially the
export market, which rendered approximately 4 000 people unemployed.
In the past I could rely on the willingness of financial institutions to
listen to our plea to assist the farmers in the drought stricken areas, as well
as the farmers affected by hail damage.
I have therefore been mandated by the Provincial Cabinet to call on banks to
assist the wild flower industry in this region as the industry indicated that
there is no insurance coverage for the harvesting of wild flowers and the
direct losses could amount to R391 000 000.
I had a meeting at Elsenburg this morning with most of the financial
institutions to give effect to the instruction by the Cabinet.
As always, the financial institutions were extremely sympathetic to our
pledge and most of them have already started with their own assessments of the
situation in conjunction with their clients in the affected areas.
I am pleased that they have all indicated that clients who have suffered
losses could approach them in order to discuss possible solutions. All the
banks indicated that they would reconsider the rescheduling of loans or
consolidation of debt to assist this industry in dire need. The banks have also
reported that not only producers were affected but also people in the value
chain. In one instance one supplier lost almost 30% of his supply but the bank
also provided him with the necessary assistance.
One aspect raised by SAPPEX is the need for insurance and I will in due
course also approach insurance service providers to raise the matter with them
as the banks did indicate that they are willing to look at options to finance
premiums on this type of insurance.
The Department of Agriculture will also draft a memorandum to the provincial
treasury for possible assistance to farmers in respect of the R1,5 million for
infrastructure losses, which they have suffered.
Enquiries:
Alie van Jaarsveld
Cell: 084 604 6701
Issued by: Ministry of Agriculture, Western Cape Provincial Government
21 February 2006
