Nkwinti: Land reform plans changing

03 March 2010, The Times
URL: http://www.timeslive.co.za/business/article333710.ece

Cape Town:  A major rolling back of the land reform programme is being signalled by the Minister of Rural Development and Land Reform, Gugile Nkwinti.

Addressing a media conference in Parliament the minister, chairing a cluster of ministers from the economic sector, reiterated that the government has not enough money in the bank to complete the original programme of land reform that required 30% of land to be in black ownership by 2014.   No new target is to be set. "We don't have enough information," he said, "to be able to make a scientific targeting."

He indicated that even the more modest programme of land restitution that was supposed to have been completed before the end of 2008 will still take some time, with no end in sight for any province except the Western Cape, which is estimated to take another 18 months.  Instead the government is to concentrate on rescuing those farms, which have already been transferred to black ownership and promptly failed.

He pointed out: "Five point nine million hectares of farms - which were active accruing revenue for the state - were handed over to people, and more than 90% of those are not functional.  They are not productive, and therefore the state loses the revenue. We cannot afford to go on like that. If we then say that the agriculture sector's production as a percentage of GDP is going down, this is part of the reason.  No country can afford that."

He also suggested that one of the obstructions to land reform may be the land tenure system, and a review of land tenure is to be undertaken.

Asked about the concept of land reform by way of a willing-buyer-willing-seller approach, Nkwinti said: "That is beyond our reach. We don't want a target now because we have to balance between development and acquisition of land. We want to balance between the number of hectares we get and the extent to which we are able to use those hectares."

He said that his department and Parliament's portfolio committee have agreed to target 200 farms for financial help in recapitalising. These were farms acquired as part of a pro-active acquisition strategy where they were acquired as going concerns.  "Because they were going concerns there were always hopes that these things would continue to produce but the reality is that that has not happened."

The 200 farms are merely a start, and eventually the department will deal with all the farms that have been acquired since 1994.

The programme of the economic cluster of ministers involves resuscitation plans being developed for farms under distress.  "The plans will include on-off farm infrastructure, mechanisation, skills training and extension support, and other needed operational inputs, through various strategiessuch as mentoring, co-management and share equity," the cluster statement said.

A green paper discussion document is being prepared and is to be presented to cabinet this month outlining the new approach to land reform and development and it will be published at the end of May.