POLITICS

Aspects of Zuma's land reform proposal border on extortion - Agri SA

Johannes Möller challenges suggestion that farmers pay half cost of land expropriations in their area

LAND REFORM: A PUBLIC RESPONSIBILITY

"Fresh thinking on how land reform can be approached by applying sound business practises and adhering to constitutional principles is required to place agriculture on a sustainable growth path," said Agri SA president, Johannes Möller, in response to a land reform proposal elucidated by President Zuma at a dinner hosted by the African Farmers' Association of South Africa (AFASA) last night. "While there is merit in some elements of this proposal - derived from Vision 2030 - they fail to ensure fairness to all parties," said Möller.

Agri SA agrees that local committees can be tasked to determine land reform needs per district. Such committees could help in identifying available land as well as beneficiaries who should qualify for assistance and post-settlement support. A more comprehensive financing package for beneficiaries is also indispensable. 

The controversial elements of the proposal deal with a limitation on the state's costs to acquire land, namely 50 percent of the market value, and the requirement that other land owners in the district should volunteer to cover the balance. Such voluntary contributors will then receive certain assurances and exemptions in exchange for their participation in the programme.

Möller said that although the proposal attempts to distribute the cost of land reform over a broader basis, it was not fair and equitable to encumber fellow land owners in a district with the financial burden of land reform undertaken in the public interest.

"The fiscus has the necessary funds and should make its full contribution in this regard, as stipulated in the Constitution. To require such additional contributions from land owners in exchange for security of land ownership and attaining black economic empowerment status, borders on extortion. It also fails to take into account whether or not a fellow farmer has the financial means to make such a contribution. For many medium to small farmers it may be an unfeasible proposition which could subject them to an uncertain future," said Möller.  

President Zuma invited commentary on the viability of this proposal, to which Agri SA will respond in greater detail. This organisation's Transformation Policy Committee will attend to the matter at its meeting on 13 November 2012. The challenge is to refrain from merely criticising a well-intentioned proposal and to come up with workable solutions to a complex issue.

Statetment issued by Mr Johannes Möller, President Agri SA, October 23 2012

Click here to sign up to receive our free daily headline email newsletter