T Joemat-Pettersson: Northern Cape Agriculture and Land Reform Prov
Budget Vote 2006/07

Budget Vote 12 of 2006/07 presented to the Northern Cape
Legislature by MEC for Agriculture and Land Reform, Ms Tina
Joemat-Pettersson

15 June 2006

Madam Speaker and Deputy Speaker
Honourable Premier
Colleagues in the Executive Council
Chairperson of the Portfolio Committee
Honourable Members of the House
Mayors and councillors
Traditional Leaders
Heads of Departments and other managers in Government
Management and staff of my department
Representatives of the Business Sector
Distinguished guests
People of the Northern Cape
Compatriots, comrades and friends

Today marks the eve of the 30th commemoration and celebration of the 1976
youth uprising. June 16 symbolises and epitomises the contribution and
sacrifices the youth made during the struggle to defeat apartheid. Madam
Speaker, the role of our youth in reclaiming our lost agricultural heritage at
a time when we are advancing our return to the land is indeed out beacon of
hope for improved agricultural performance that is based on poverty
eradication, the restoration of human dignity, economic development and
growth.

The 30th anniversary of June 16 takes place exactly 12 years into our
freedom, which has presented many opportunities for our youth. It is further no
co-incidence that this budget speech takes place when we have just celebrated
the 10th Anniversary of the adoption of the Constitution of the Republic of
South Africa. We have just emerged from free and fair local government
elections in March this year. The election results may have been the
culmination of a long and hard-fought campaign. But more than anything else,
they are the start of a new era in local government. What takes place after an
election is far more important than what takes place before. For this reason,
we will focus on some of the key tasks and challenges faced by the Department
of Agriculture and Land Reform in the fulfilment of its mandate to make local
government work better for all.

Madam Speaker, allow me to welcome the women who are making us proud in
participating in the agricultural sector. A special welcome to the winners of
the National Female Farmer Awards of last year who have proudly represented the
Northern Cape province.

Ms Felicity Fillies who won the first price in the Informal Markets
Category, Ms Colene Grievelink, first price winner in the National Markets and
an Overall Winner of the Competition. May I also express my warmest
appreciation to members of the agricultural industry for gracing this Budget
Vote with their presence?

Madam Speaker, allow me to also use this opportunity to once again
congratulate and take pride in the Suid-Bokkeveld LandCare project in Calvinia,
which won gold for last year’s Premier Service Excellence Awards. This shows
our people’s commitment and dedication to employ resources that government
offers to them.

Madam Speaker, our spending and development for 2006/07 will be focused on
the Agriculture Programme of Action, through which we will endeavour to meet
our commitments as stated in the Provincial Growth and Development Strategy,
the Agriculture Sector Plan and the Accelerated and Shared Growth Initiative
for South Africa (AsgiSA) which offers a renewed intervention of a national
shared growth initiative.

Allow me then to go into some details about our departmental allocations and
commitments as also outlined in our strategic plan over the Medium Term
Expenditure Framework (MTEF) period.

Madam Speaker, the overall departmental budget allocation for the 2006/07
financial year is R128,446 million. In comparison to the original allocation of
the 2005/06 financial year, this represents a seven percent increase on
equitable share funding and a 35% increase on the conditional grant allocation.
The total conditional grant funding is R24,782 million and has been allocated
as follows:

Comprehensive Agricultural Support Programme (CASP): R15,777 million
LandCare: R5,785 million
Provincial Infrastructure Grant: R3,220 million

The budget according to the departmental programmes has been allocated as
follows:

An amount of R30,290 million has been allocated for Programme one:

Administration: An amount of R288 000 has been included in the allocation as
earmarked funding, for the upgrading and improvement of the management
information systems in the department.

Programme two: Sustainable Resource Management will receive an amount of
R14,544 million. This total allocation includes conditional grant funding of
R5,785 million for LandCare.

The sum total of R47,154 million will be spent on Programme three: Farmer
Support and Development. R15,777 million of this allocation is earmarked for
the Comprehensive Agricultural Support Programme and R1,720 million for the
provincial infrastructure development.

Programme four: Veterinary Services will receive an amount of R18,322
million. An amount of R1 million has been set aside for the upgrading of
Veterinary Offices in the province.

Programme five: Technical Research and Development Services will benefit by
R14,979 million. This allocation includes R700 000 earmarked specifically for
technical research and R500 000 for infrastructure development at the Research
Stations.

Programme six: Agricultural Economics has been allocated R3,157 million,
which represents a 51% increase owing to R1 million earmarked allocation for
improvement of agricultural support in pursuit of provincial economic
growth.

Land reform

The province has renewed the mandate of the Land Reform Co-ordinating
Committee. One of its key tasks is to ensure coordination based on the Land
Summit resolutions. In particular, government needs to enhance its capacity in
targeting beneficiaries for land reform. We ought to identify and acquire land
for redistribution and to support beneficiaries with an array of mechanisms
that would enable them to become independent commercial farmers.

The Department of Agriculture and Land Reform is working with the Northern
Cape Provincial Land Reform Office and the Regional Land Claims Commission on a
plan for proactive land acquisition. We will collectively work towards meeting
the Northern Cape’s redistribution target of 625 000 ha per annum.

Reflecting on our previous year’s 2005/06 performance, 62 333 ha of land has
been redistributed. This is made up of 39 projects, ranging from LRAD, Equity
Schemes, Commonage, Settlement and Tenure Upgrade. 53 ha are in Frances Baard,
21 105 in Siyanda and 34 253 in Namakwa. One of the commonage projects was a
contribution towards the Integrated Sustainable Rural Development Program in
Kgalagadi measuring 6 808 ha and benefiting 60 people. Land measuring 112 ha
was purchased for the settlement of 22 households in Pixley Ka Seme.

Subsequent to the provincial land summit of July 2005, the Provincial Land
Reform office facilitated the resuscitation of the District Assessment
Committees in Siyanda, Frances Baard and Namakwa. The committees will, among
others, look at integrated land reform delivery, including the co-operation of
various stakeholders with regard to the implementation of the Extension of
Security of Tenure Act (ESTA), as part of addressing evictions.

In terms of state land delivery, a total of 314 state properties were
recommended for vesting and 18 for disposal through the facilitation of the
Northern Cape State Land Disposal Committee. 8 356 ha of state agricultural
land was allocated to 7 emerging farmers for commercial livestock production. 5
108 ha are for women farmers.

Madam Speaker, in moving towards the restitution deadline of December 2008,
the Regional Land Claims for Northern Cape and Free State has settled 2 101
claims out of the total of 2 905, with 760 claims outstanding. Smauswane and
Kakamas have been resolved as well as the 1st phase of Sydney-on-Vaal i.e.
Vaalbos National Park. The community has secured and paid for an alternative
land for the relocation of the park. The second phase involves land that is
still being mined and negotiations are currently on with the owner. Discussions
are at an advanced stage with Ga-Segonyane Municipality with regard to
Dikgweng.

Negotiations on the sale agreement will be completed as soon as the
Council’s resolution on the release of the municipal land is received. With
regard to Pniel, the Commission has made a submission to the Director General
of Land Affairs to take over the Administration of the Commonwealth
Parliamentary Association (CPA). For Droogfontein, case valuation amounts are
still being verified.

We will, through the Land Reform Co-ordinating Committee ensure that: The
necessary support is provided for the settlement of the outstanding claims, and
post-settlement support thereof.

All stakeholders participate in the development of the post settlement
support strategy, which process has received R10 million from the Belgian
Embassy through the Commission on Land Restitution.

Municipalities are provided the necessary support with regards to the
by-laws related to the keeping of animals and food safety aspects. We address
issues raised during the National Council of Provinces (NCOP) visit at
Moshaweng in March 2006, which are mainly around land, water and agricultural
support. The Northern Cape Provincial Land Reform Office will have a sub-office
opened in Kgalagadi by the end of this financial year. This will assist in
addressing the land needs in that area.

Madam Speaker, linked to the issue of accelerating land and agrarian
transformation, has been the question of driving the core objectives of the
government as set in 2004 to halve poverty and unemployment by 2014.

The Department of Agriculture and Land Reform has identified programmes and
projects and has furthermore explored agricultural corridors and hubs with a
view to streamline resources for agricultural development in the province. This
would be done in line with national initiatives, particularly the Agriculture
Programme of Action that serves as a catalyst towards achieving the six percent
growth target set for our country’s economy.

Seven hubs, namely, Vaalharts, Hopetown/Douglas, Prieska/ Groblershoop,
Upington, Orange River corridor for 4 000 ha of water rights, Namaqua and
Kgalagadi will form part of the Industrial Strategy for Agriculture in the
province.

The following are some key programmes and projects which have been
identified as anchor projects in the hubs:

The Orange River Emerging Farmer Settlement Programme aims to broaden access
for previously disadvantaged communities along the Orange River through the
allocation of the new water rights and irrigation development. The Programme
will as well contribute towards the target of 50% increase of the irrigation
land in Republic of South Africa (RSA) as per the AsgiSA targets. Preliminary
investigations have indicated the potential of soil for irrigation farming from
the Karoo through to Namaqualand. Projects with water rights are receiving
assistance in terms of further development.

Vaalharts irrigation scheme has been identified and classified as one of the
anchor projects within the Vaalharts development hub. To this end a programme
has been developed that is intended to rehabilitate the irrigation system by
addressing the water logging and salinisation problem, upgrading the canal and
putting in measures for efficient and sustainable use of agricultural water. In
collaboration with farmers and other stakeholders the project will further look
at alternative crops of high value that will increase profitability in the
Vaalharts scheme, empower black farmers and contribute to sustainable jobs in
the area.

R250 million has been allocated through the national Department of
Agriculture for the rehabilitation of irrigation schemes over a ten-year
period. Assessment has started and a scoping plan will be completed by December
2006. The programme will also advance the agri-tourism purpose in the area,
following on the identification of olive production and processing as one of
flagship projects in the province.

With regards to the commercialisation of the goat industry, 76 Cooperatives,
which involve emerging farmers, have been established to participate in the
commercialisation of goats programme. This programme aims to formalise the
production and marketing of goats in the province. Through collaboration with
the Agri Sectoral Education and Training Authorities (SETA), 320 co-operation
members received training on goat management at one of our research stations.
The department further distributed Goat management kits to the value of R 300
000 to co-operatives for animal husbandry. Furthermore, funding has been
secured for goat production by cooperatives and to link production with the
processing and market of meat products. The project will also involve the
participation of members of the Kgalagadi Dipudi Enterprise.

The department is currently engaging with various role players on the new
bio-fuel initiative and further information will be communicated once there is
general agreement on the way forward.

Madam Speaker, integral to AsgiSA is the acquisition of skills. Much headway
has been made in our partnership with the South African Agri-Academy and the
two other Cape provinces in the training of our economist, veterinary officials
in areas of marketing, traceability and laboratory skills. As envisaged in
Joint Initiative on Priority Skills Acquisition (JIPSA), the province has
established a database of retired agricultural engineers and other agricultural
specialists who would be drawn to assist where necessary. In the next three
months we will be recruiting unemployed graduates such as animal health
technicians and researchers. Furthermore, artisans, extension officials and
other agricultural officials will be put through a learnership programme this
year.

Human capital

Whilst we continue to re-align our department’s organisational structure to
meet the new demands of our strategic plan, we continue to recruit and develop
suitably qualified and skilled personnel who will assist us to deliver on our
mandate to provide improved livelihoods for our people.

To support this effort during this financial year, the department will be
filling 63 vacancies both in the provincial office and at our regional offices.
All our appointments will be guided by our equity targets. These positions
range from management to technical and professional positions.

Retention: For many years we have lost most of our technical personnel
including vets to other provinces, most if not all that we took effort in
developing. They in all cases left the province because other provinces were
pitching these positions at a higher level. Today, we are pleased to announce
that through Minister and Provincial MECs (MINMEC) we resolved to standardise
these positions in an effort to allow stability in and between provinces. These
technical positions will be upgraded as from April 2007. This will assist in
our retention capacity of scarce skills as well as reduce the amount of
competition amongst provinces for these scarce skills thus improving the
performance and output in provinces.

As a way of improving communication and information sharing by the
department with stakeholders, we will be launching our new website,
establishing a new GIS unit for the upgrading of agricultural database and
publish our service delivery charter during this financial year.

Madam Speaker, the drought conditions experienced in the last three to four
years and the recent discussions on global climatic change, should be regarded
as warning bells that the Northern Cape might be adversely affected in the near
future, and all people involved in the farming sector must be prepared. The
department in the last year (Dec 2005 to March 2006) received R20 million for
implementation of the drought scheme of which 1 303 communal/emerging and 2 468
commercial farmers benefited through purchase of fodder for their animals.

It is in this light Madam speaker, and in response to the year 2006 being
declared as the International year to combat Land degradation and
desertification, that we as a department will use the allocated funds to:
Review the programme to include all aspects relevant to land care and
agricultural risk management. Further development will include appropriate
communication with farmers on agricultural risk, recruitment of young
agricultural engineering technicians and finalising our database on engineers
outside government that could assist with various projects

LandCare budget has increased by 66% this year. The R5 million will be spent
on creating awareness among farmers, municipalities and public on land care,
establishment of land care committees and land use planning. The civil society
mobilisation is currently taking place in various districts and I would like to
urge the farmers to attend.

The allocation is as follows:

Awareness programme (provincial): R560 000
Siyanda: R845 400
Kgalagadi: R300 000
Pixley Ka Seme: R765 000
Namakwa: R3 089 300

Finalise in collaboration with all stakeholders, the drought, floods and
veld fire management plans in line with the Disaster Management Act of
2002.

AgriBEE (Black Economic Empowerment) and Micro Agricultural Finance
Institutes of South Africa (MAFISA)

I would like at this stage to thank all role players who participated in
submitting inputs for the national steering committee to finalise the AgriBEE
document. The AgriBEE charter and scorecard have been finalised and we are
awaiting the signature and gazetting of the document in the near future. I
would like to urge particularly the emerging farmers to take a keen interest in
the document and ensure smooth implementation in collaboration with the
commercial sector.

In collaboration with the National Department of Agriculture, we have
developed a roll-out plan for Micro Agricultural Finance Institutes of South
Africa (MAFISA) in the Northern Cape. The plan, with recommended institutional
arrangement, was presented to the Economic Cluster of the Province and was
endorsed. Implementation will start in the Kgalagadi District as our pilot, and
will be extended to other parts of the province in the third quarter of this
year. Discussions with role players have already started. This intervention
will certainly revitalise the rural economy and contribute towards rural
development.

Comprehensive Agricultural Support Programme (CASP)

Conditional grants are bringing meaningful change in the lives of
beneficiaries in that they are able to implement best farming practices and
creation of jobs.

Northern Cape has received R15,777 million for 2006/07. 1 524 people will
benefit and 366 jobs created through the implementation of the approved 13
projects.

Madam Speaker, 70% of Comprehensive Agricultural Support Programme (CASP)
allocation will be spent on land and agrarian reform projects and we have this
year included commonages, particularly in Namakwaland.

Frances Baard District will receive R3,507 million for the construction of
irrigation systems, overnight storing facilities, upgrading of stock and
watering systems and fencing. Kgalagadi district will receive R3 million for
upgrading of irrigation equipment, chicken housing facilities for egg
production, improved livestock production, training and marketing; R5,838
million goes to Siyanda for land and irrigation infrastructure development. The
allocation for Pixley ka Seme is R543 000 for infrastructure development to
ensure optimal utilisation of the resources and Namakwa will receive R530 000
for marketing and stock farming infrastructure.

Madam speaker, we took note of the plight of the Onseepkans farmers who were
recently settled on new plots. We will this year assist them with the
development of business plans for CASP funding in 2007/08 financial year. By
acquiring mechanisation (tractors and implements) they will certainly make
their farming more viable.

Food security

Food security still remains an integral part in terms of our responses to
diseases such as HIV/AIDS. Furthermore, the prevailing drought conditions
throughout the country compel us to increase our efforts in addressing the food
insecurity, particularly at the household level. To this end the department has
set aside R4,9 million, which will be spent as follows:

R439 000 for starter packs (R84 000 for households, R250 000 for schools and
R105 000 for clinics/health centres)

This year we have included milk goat starter packs for schools. Five schools
have been identified. R285 000 will go for goats management starter, which
includes 30 rams to the value of R75 000 and goats management kits worth R210
000. R2,4 million will be spent on the implementation of 10 projects throughout
the province. R1 million is for agro-processing projects R300 000 is for World
Food Day celebration and R100 000 has been set aside for school food garden
competition.

We will continue to mobilise resources at out disposal and to ensure the
effective implementation of the Integrated Food Security and Nutrition
Programme. Madam Speaker, it is through the concerted efforts of the
Interdepartmental structure that the province successfully hosted the national
celebration of the World Food Day on 16 October 2005. We have received
accolades from the Country Representative of the Food and Agricultural
Organisation of the United Nations.

Agro-processing

Linked to food security initiatives, the department will continue its
engagements with TetraPak to work on a plan for the processing of fruit,
vegetables and milk for production of a nutritious drink, which is targeted at
the integrated school nutrition programme. The project will also address the
problem of markets that is experienced by most of our emerging farmers, but
most importantly, promote participation by Previously Disadvantaged Individuals
(PDIs) in the agriculture value chain.

Furthermore, as a response to the Minister’s new initiative the department
has developed a plan on agri-tourism for Vaalharts area. 180 hectares of land
has been identified at our Vaalharts research station, which will be allocated
to 12 emerging farmers for olive production. The project will link with other
current agri-tourism ventures in the area.

Veterinary services

Madam Speaker, the recent outbreaks of avian influenza and general
discussions on bio-security and bio-safety, trade requirements and food safety,
necessitate that we must take a re-look at Veterinary Services and its
budget.

The funds will be used to:

Create emergency preparedness unit. Already 11 jobless qualified Animal
health technicians have been appointed and will undergo extensive training
continuation of census and sampling for animal disease surveillance. This
exercise was unfortunately stopped in 2005/06 a result of concentration on
dealing and assisting other provinces with outbreaks of avian influenza and
classical swine fever. We therefore have to finish the exercise in order to
understand our animal disease status and participate in international markets.
Animal disease surveillance will include:

* Trapping of mosquitoes for African horse sickness
* Continuation of avian influenza survey to maintain our export status
* Typing of tuberculosis (TB) in meerkats in Kgalagadi area to establish source
of infection
* Border control and inspections
* Full staffing of the laboratory in Kimberley and officially opening the
lab
* Export readiness of emerging goat and Nguni cattle farmers

Continuation of food safety campaigns which will include

* Abattoir inspections
* Assisting Municipalities and Health Department, with food safety aspects
within butcheries
* Illegal slaughters
* Establish a new State Vet office in Prieska/Douglas area

Madam speaker for once in the Northern Cape, we will have all fields State
Vet posts filled by August 2006

Technical Research and Development Services

This programme will focus on the following:

Nguni cattle production especially in Frances Baard and Kgalagadi
Districts

An agreement with Industrial Development Corporation (IDC) and University of
the Free State was signed on 8 June 2006 in this regard. This will include
Establishment of a trust, Allocation of R500 000 per annum for the next five
years for the purchase of pregnant Nguni cows/heifers and quality bulls and,
identification of emerging farmers/communities to participate in the
project
R700 000 earmarked specifically for infrastructure development at the Research
Stations Purchase machinery for the research farms.

We started to replace old tractors in the last financial year but it will
take us another two years to fully replace old dilapidated equipment. We will
work with FARM Africa and other non-profit organisations (NGOs) and the
National African Farmers Union (NAFU), in identifying farming communities who
need farming equipment.

Quality research outputs that will include research on small animals, veld
and pasture management; participation in the bio-fuel endeavour and research on
various crop cultivars.

Export readiness

Madam speaker the preparation of our emerging farmers for the export markets
has been further strengthened this year through an agreement with South Africa
Agri Academy and the National Institute for Higher Education (NIHE) in the
province to:

*Establish portal system for emerging farmers to have access to export
markets
*Train 15 more farmers on export requirements. A few of these farmers will be
further taken on an overseas tour as part of their training.

*Train agricultural technicians and lecturers on export markets.

Intergovernmental Relations

The importance of intergovernmental relations as set out in the
Intergovernmental Relations Framework Act can never be over emphasised. The
department has also participated in the assessment of the Integrated
Development Plans of municipalities. Our participation as a department in these
engagements was to ensure that agriculture programme of action is captured in
the IDPs of municipalities, enabling us to provide the necessary support to
municipalities in an endeavour to revive the local economies.

In conclusion, Madam Speaker despite the challenges that confronts us, we
commit to spend and deliver on our mandate and, we are hopeful and confident
that our interventions and strategic programmes will make a meaningful
contribution to economic growth of our province and impact positively on the
lives of our communities.

I also wish to express my utmost gratitude to the following:

* Head of Department (HOD) Mr Viljoen Mothibi, The Commissioner for the
Regional Land Claims Commission, Mr Sugar Ramakarane, The Head of the
Provincial Land Reform Office Mr Obed Mvula, and their Senior Management and
staff.

* The ministerial staff

* The Chairperson of the portfolio committee, Mr David Rooi and fellow
members particularly the farmers in the Portfolio committee for their
insightful guidance and expertise

* The financial institutions (Land Bank, Standard Bank, ABSA and FNB),
NCEDA, Farm Africa and agricultural sector at large, for their unflinching
support

It is my hope Madam Speaker that with these comments we have set the tone
for a developmental paradigm in Land and Agrarian Reform, competitive
agricultural development and a sustainable use of our natural resources.

I thank you
Ke a leboga
Baie dankie
Ndiyabulela
Asante sana

Issued by: Department of Agriculture and Land Reform, Northern Cape
Provincial Government
15 June 2006

B

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