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Kwanalu

The voice of agriculture . Die stem van landbou . Izwe lezokulima

Nasionale Vergadering keur Onteieningswetsontwerp goed sonder om ernstige implikasies vir die agri-sektor en ekonomie aan te spreek | National Assembly passes Expropriation Bill without addressing the serious flaws in the bill for the agri sector and economy

English to follow:

29 September 2022

Die Nasionale Vergadering (NV) het op 28 September die Onteieningswetsontwerp, soos na hom verwys deur die Portefeuljekomitee op Openbare Werke en Infrastruktuur, gedebatteer en goedgekeur. Ongelukkig het die NV nie gebruik gemaak van die debat om die ernstige gebreke wat steeds in die wetsontwerp voorkom aan te spreek nie en het dus ‘n geleentheid verbeur om die moontlike nadelige gevolge daarvan vir die landbousektor en breër ekonomie te versag.

Die wetsontwerp wat deur die NV goedgekeur is maak steeds voorsiening vir die moontlikheid van nul vergoeding ingevolge klousule 12(3) en (4). Agri SA se aanvanklike voorleggings aan die regering oor die wetsontwerp het die resultate ingesluit van twee studies wat sy kommentaar toelig en steun. Ons posisie is steeds dat die insluiting van die nul-vergoeding klousule toegang tot kapitaal asook kapitaalvorming vir die sektor en ekonomie, ondermyn.

Voorbeelde van soortgelyke grondbeleide in lande soos Zimbabwe en Venezuela illustreer die potensieel rampspoedige impak wat daardie beleid op die landbou, die breër ekonomie, asook die samelewing kan hê.

‘n Verdere betekenisvolle kwessie is hoe die wetsontwerp onteiening as sodanige definieer – Agri SA glo dat die definisie te eng is. Dit maak as’t ware die deur oop vir ‘n vorm van indirekte onteiening by wyse van ‘n beperking op eiendomsregte sonder dat vergoeding betaalbaar is.

Hierdie aangeleenthede sal ‘n negatiewe impak hê op ons gedeelde nasionale verbintenis tot die bou van ‘n meer inklusiewe landbousektor. Dit sal die beskerming wat private eiendom geniet verskraal, wat dan kan lei tot ‘n uitvloei van kapitaal vanaf die landbousektor en die breër ekonomie. Die verwagte werksverliese en belegging sal ‘n impak hê op beide opkomende en gevestigde boere.

Die wetsontwerp baan nou sy weg na die Nasionale Raad van Provinsies (NCOP), en Agri SA doen ‘n beroep op die lede van daardie liggaam om die oënskynlike gebreke, asook die moontlik vernietigende ekonomiese impak daarvan, in ag te neem. ‘n Verdere aanval op die sekerheid van eiendomsregte sal bloot bydra tot ‘n klimaat wat belegging in die landbousektor, onder andere, ontmoedig, wat op sy beurt voedselsekerheid in die land en streek sal ondermyn.

Eiendomsregte vorm die hoeksteen van ekonomiese ontwikkeling, en Agri SA sal elke hulpmiddel tot sy beskikking aanwend om die beskerming daarvan ingevolge die Grondwet van Suid-Afrika te verseker.

Agri SA doen ‘n beroep op die regering om saam met die private sektor te werk aan ‘n volhoubare, grondwetlik-geldige program vir inklusiewe ekonomiese groei in Suid-Afrika wat private-sektor vennootskappe insluit. Agri SA is goed geposisioneer en gewillig om die regering te help om die uitkomste van grondhervorming onder die huidige raamwerk te verbeter.

Navrae:

Christo van der Rheede

Agri SA Uitvoerende Direkteur

Willem De Chavonnes Vrugt

Agri SA, Voorsitter, SvU Grond

Andrea Campher

Bestuurder: Risiko- en Ramp Eenheid

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29 September 2022

Yesterday evening, on 28 September, the National Assembly (NA) debated and passed the Expropriation Bill as referred to it by the Portfolio Committee on Public Works and Infrastructure. Unfortunately, the NA did not use the debate to engage with the serious flaws which remain in the bill and missed this opportunity to mitigate its likely harm to the agricultural sector and wider economy should the Bill in its current form be adopted.

The Bill that was passed by the NA continues to allow for the possibility of nil compensation for expropriation in terms of clause 12(3) and (4). In its initial submissions to government on the Bill, Agri SA commissioned two studies to inform and support its commentary. Our position remains that the inclusion of the nil compensation clause will undermine access to capital and capital formation for the sector and economy. Examples from similar land policies implemented in countries like Zimbabwe and Venezuela illustrate the potentially disastrous impact that these policies can have on agriculture, the broader economy, and society.

Another significant issue with the Bill is how it defines expropriation itself, which Agri SA believes is too narrow. This essentially opens the door to a form of indirect expropriation through the limitation of property rights without compensation being payable.

These issues will have a negative impact on our shared national commitment to building a more inclusive agricultural sector. It will weaken the protections afforded to private property and this could see an exodus of capital from the agricultural sector and the broader economy.

The anticipated loss of jobs and investment will impact both emerging and established farmers alike.

As the Bill now makes its way to the National Council of Provinces (NCOP), we call on legislators in that body to take into account the Bill’s apparent flaws and its likely devastating economic impact.

A further assault on the certainty of property rights will only add to a climate that deters investment in, amongst others, the agriculture sector which will undermine the country and region’s food security.

Property rights are the cornerstone of economic development and Agri SA will use every tool at its disposal to ensure their continued protection under the Constitution of South Africa.

Agri SA appeals to government to work with the private sector to craft a sustainable, constitutionally valid programme for inclusive economic growth in South Africa that includes private sector partnerships. Agri SA is well placed and willing to assist government to improve the outcomes of land reform under the current framework.

Enquiries:

Christo van der Rheede

Agri SA, Executive Director

Willem De Chavonnes Vrugt

Agri SA, Chair CoE: Land

Andrea Campher

Agri SA, Manager: Risk and Disaster Unit