Another bill threatens property rights

The proposed changes to the Land Use Management Act which has been tabled in Parliament underlines the fact that TAU SA was not wrong in its evaluation that the new Expropriation Bill aims at targeting all farmers' assets.

The Changes to the Land Use Management Act also empowers the Minister to expropriate farmers' movable property, with only the government authorized to determine compensation.

Mr Paul van der Walt, president of TAU SA, says these two bills are in tandem with each other - a deadly combination which will impact negatively on the agricultural sector. No camouflage whatsoever can make this bill acceptable. "A so-called democratic process is being abused by a government with a two third majority in the process of creating a situation even worse than in Zimbabwe. The communists of the old Soviet regime would have been hard put to surpass such a situation".

Mr Van der Walt also pointed out that in terms of this new act, government will retain expropriated land, implements and stock in trust, until it will be transferred to the "emerging" farmers. "It is clear that even before "suitable" farmers are identified, the land will be transferred to government. This confirms a view that government is eager to get the current commercial farmers off their land as quickly as possible, even though the land will not be transferred to the new owners immediately. There are no guarantees that government will ever transfer title deed of expropriated land to new farmers. In fact, expropriated land could be given to ministers and their struggle comrades", Mr Van der Walt said. "This is pure communism, where government takes control of everything. The South African government has already gained control of underground water and mineral rights - this situation is even worse than in Zimbabwe and government's lack of transparency is viewed with much trepidation".

TAU SA views the proposed expropriation of shares in agricultural businesses and trusts as a malicious attack on farmers, as they are the major shareholders in most agricultural businesses. Many farmers have also put their property and other assets into trusts. "The next step will be that the minister will also endeavour to expropriate personal trusts or shares to dish out to their comrades and cronies", Mr Van der Walt said.

Mr Van der Walt called on the formal business sector to join the agricultural sector to resist these two bills with everything at their disposal. "The free market principle is now severely jeopardized. Today agriculture is targeted, tomorrow the mines, factories and businesses could face the same fate. Then South Africa will really become a second Zimbabwe", Mr Van der Walt warns.

Statement issued by Paul Van der Walt, President of TAU SA, June 19 2008