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BUDGET SPEECH FOR 2001/2002 BY THE HONOURABLE MEMBER OF THE EXECUTIVE COUNCIL FOR AGRICULTURE, LAND REFORM, CONSERVATION, AND ENVIRONMENT, MR. DAWID ROOI, VOTE 12, 26 June 2001
Honourable Speaker,
Premier,
Deputy Speaker,
Members of the House,
Comrades,
Ladies and Gentlemen
It is with a great sense of appreciation to be afforded the opportunity to lead the discussion on the 2001/2002 budget for Agriculture, Land Reform, Conservation and Environment. It is indeed a privilege for me to serve this Province and our country in this capacity.
Honourable Speaker, may I also thank the Premier for appointing me to this portfolio and in that, investing his confidence and that of the people of the Province in me, but I must acknowledge that it is a big challenge that I am faced with. I also wish to thank my predecessor, MEC Makweya for having led this Department in the past four years and making sure that transformation programmes are developed so that an effective and efficient machinery is established for service delivery.
It is gratifying for me to make this budget presentation after witnessing one of the wonders of nature last Thursday, the solar eclipse.
My portfolio is sometimes referred to as "The Green Portfolio" because it deals with those resources on which mankind's survival is so dependant. Those of us who were able to watch and appreciate the solar eclipse will appreciate the words of wisdom by the late Julius Nyerere when he once said: "We the present generation are the custodians of the land of our ancestors and trustees of the land for the future generation." I am sure that all of us agree with this statement.
In the spirit of this statement, allow me Mr. Speaker to make the House aware that the Northern Cape has made its mark in the struggle of resistance to the multinational mindset. The compensation case brought by over 5 000 South Africans against the British Company, Cape PLC, should be seen as a "touchstone of sanity," The names of the asbestos victims shall be enshrined in the history books of global politics. I urge the Northern Cape people of all races not to ignore the impassioned rallying cry of those suffering from a legacy of disease and death. Let their struggle not be a struggle that can only be understood by one section of our society. I would therefore like to urge all businesses in and outside the province to assist government in its quest of providing assistance to the victims of Asbestosis. The Stephanie Jansen snr Trust Fund had been established with the sole purpose of rendering support to victims and their families, seeking to alleviate the plight of children who have been orphaned as a result of the carelessness of companies such as Cape Plc. We will embark on all our effort to lobby businesses and individuals to support the Trust Fund.
Mr. Speaker, I am glad that my ministry has been involved and will continue to play its role in giving support to the victims. Efforts have been made to enlist victims who were not listed before and to verify the original enlistment process. We want to believe that a good job was done to that extent. Our programme of assistance shall be expanded as we continue to engage NGOs such as Concerned People Against Asbestos.
The asbestos issue or problem is a chilling reminder to all of us that if we do not look after our environment we are doomed. The environment is after all where we live; where we have to feed ourselves, build shelter to protect ourselves against the elements and where we need to build a prosperous economy to sustain our nation into the future. No longer can we think of Agriculture, Land Reform, Conservation, and Environment as separate and disjointed issues that can be dealt with in isolation of one another. Together they lie at the heart of the environment, that rich and wonderful space where we will plan and implement our future.
We have succeeded in integrating the three entities into one department that gives a united service. Therefore, the budget allocation is premised on this integration.
Mr. Speaker, honourable Members of the House, for this financial year the work of the Department will be organised around four focus areas that will enable the Department to account better for its expenditure and ensure meaningful delivery. These areas include:
Unlocking the Potential
Food Security
Environmental Sustainable Framework
Effective delivery and administration
Mr. Speaker, the total budget allocation to the department for the financial year is R 52 786 000. Of this amount 69,4% is allocated for actual delivery, such as emerging farmers, conservation management, etc. Administration's allocation is 17% and auxiliary services has been allocated 13,6%. There are increases on this year's budget allocation notably; the environment component has received an additional R1, 9 million.
The total allocation for programmes 4,5 and 6, the Directorate of Conservation and Environment is R 10,595 million. This allocation will allow the Directorate to function properly and execute its mandate. This will include staffing the component and realigning its functions. However, the Directorate will continue to tighten the belt and those functions such, as Regional Ecological Services that were suspended in the past will remain suspended this financial year. The priorities in terms of Conservation for the current financial year will be the legal obligations, notably the management of the protected areas and the wildlife resources of the Province.
The Directorate of Agriculture and Management have been allocated R 42 million and as in the past financial year, Programme 2: Agricultural Development has been allocated the highest amount of R 18,3 million. Programme 1 -
Administration and Office of the MEC has been allocated R8, 9 million. Veterinary Services under Programme 3 has been allocated R 7,7 million. Under programme 7 - Auxiliary Services an amount of R7, 1 million has been allocated. The allocation for the entire Department is limited in view of the huge challenges facing the Department. However, the Department will operate within the allocated budget. Unlocking the Potential
Mister Speaker, as mentioned previously the first focus area is Unlocking the Potential. Agriculture has a central role in the provincial economy. Measures need to be put in place that will ensure that the huge potential that is available in Agriculture and Conservation, are unlocked. To this end, serious efforts will be made to ensure that some of our reserves are upgraded and improved for economic development. In this regard the focus will fall on our two nature reserves, Doornkloof and Rolfontein. These two reserves, situated some 25 km apart on the southern banks of the Van Der Kloof Dam, are relatively undeveloped. They, however, give the opportunity for game viewing, adventure tourism and overnight facilities. At the core of the focus will be the possible consolidation of the two reserves into a larger reserve with the potential to re-introduce game associated with the plains and mountains of the region. There are already some of the rare and expensive game species such as the white rhinoceros and buffalo. A donation of 15 buffalo to the value of about R 1,5 million has through negotiations, been promised by the Eastern Cape for 2001.
The Gamsberg Zinc mine has been in the news in the past year. Progress has been made in so far as the controversy surrounding the project is concerned. The developments have been approved. If mining is to proceed, a Plant Rescue Operation of the rare and endangered species will be launched to which Anglo will contribute R 4 million. The National Botanical Institute will most probably conduct this operation with plants being conserve at the Karoo Botanical Gardens. However, discussions are underway with this institute for the establishment of a display garden in the Province as part of the process. In order to offset the loss of bio-diversity through mining, Anglo has offered R 10 million towards the establishment of a protected area in the Bushmanland region.
In general, the wildlife industry continues to play an important role in the economy of the Province. During the past year 542 international hunters visited our Province, spending about R 32 million. The challenge for my Department in the current year is to make a concerted effort in bringing together all excluded communities in obtaining permits to hunt in our reserves and other game farms.
Mister Speaker, as you know the Gariep SDI was launched last year. As part of the Department of Trade and Industry's investment facilitation strategy the main objective of the Gariep SDI is to unlock inherent economic potential in the Kalahari, Lower Orange and Namaqualand districts as well as in Southern Namibia by enhancing the attractiveness of these areas for investment. To this end, the SDI aims to facilitate the creation of viable new jobs through a process of sector scanning, the identification of potential investment opportunities and project appraisal. As part of this process, a great deal of attention is devoted to enlisting the support of local stakeholders and development institutions in order to identify and unblock any bottlenecks that may exist that prevent economic development.
I will take a few moments to talk about some of the projects along the lower Orange River where the Gariep SDI is active and is providing assistance to local stakeholders.
The Orange River Producers Alliance (ORPA)
The Gariep SDI has provided financial assistance to the Orange River Producers Alliance (ORPA) to identify agri-logistics solutions that would facilitate the orderly export of last season's table grape harvest. Moves are currently afoot on the Gariep SDI to get ORPA to commit itself to contributing to black economic empowerment through the provision of support to and participation in emerging commercial farmer settlement.
Namibia
Through the Gariep SDI, which is a cross-border initiative, discussions have been held with the Namibian Deputy Minster of Agriculture with a view to establishing a collaborative relationship with regard to agricultural development along the lower Orange River. Namibia has a fledgling table grape industry that has developed on the northern banks of the river and a number of other new irrigated agricultural developments are planned. The meeting with the Deputy Minister was intended to determine what prospects might exist for co-operation on matters such as shared water course agreements, agricultural marketing, infrasturcutral development, agri-logistics, etc. Follow-up meetings are planned at a government-to-government level as well as between industry bodies on both sides of the river.
SA Dried Fruit and Eksteenskuil
Prior to the last raisin season the Gariep SDI held discussions with SA Dried Fruit (SAD) in Upington. The main purpose for doing so was to explore the possibility of brokering partnership agreements between existing small-scale raisin producers at Eksteenskuil with a view to medium to long-terms expansion of raisin production there. SAD has indicated its willingness to enter off-take agreements with emerging commercial farmers that can meet certain production standards. By guaranteeing a market for emerging commercial farmers, SAD is effectively assisting to reduce the enterprise risk and thereby make such ventures more attractive to providers of development and project finance. It is hoped to finalise agreements that will allow the pilot testing of a number of projects during the forthcoming season.
International Trade Centre (ITC)
The Gariep SDI has also held discussions with Geneva-based representatives of the International Trade Centre (ITC) a UNCTAD/WTO agency that specialises in the development of international trade. The ITC currently runs an "Export-led Poverty Reduction Programme" that seeks to harness the entrepreneurial capacity of producers in poor communities by providing them with the means to exploit export opportunities. Its aim is to create new job and income opportunities and develop the basis for the accumulation of capital, skills and technology within communities in order to provide the basis for other dimensions of economic and social development. Through the Gariep SDI an agreement has been reached with the ITC to give consideration to a project from the Northern Cape. An opportunity has been created to support the process of emerging farmer settlement through export led agricultural production. All that now remains is to formulate the aforesaid proposal and explore the development of linkages with existing producer organisations and the public sector agencies responsible for agricultural development.
Sanddrift
The Gariep SDI is supporting Transhex and the Richtersveld CPA to identify an appropriate development strategy for land adjacent to the Orange River that Transhex has made available from its mining lease area. An investigation is currently underway to determine the most appropriate business and agricultural model for a project development at Sanddrift near Baken. Ultimately, this project could see the development of approximately 300 hectares of new irrigated agricultural development and contribute in the long-run towards the development of a substitute economic activity that will partly replace mining as a source of economic welfare. The Richtersveld Farmers Union is currently being assisted by the Community Public Private Partnership (CPPP) programme, and offshoot of the SDI programme, with the business planning for a hydroponics project also at Sanddrift.
Alexkor
The process of restructuring and privatising Alexkor continues but is as yet incomplete. Nabera, the former management contractor, have now left the mine which is now under the interim management of a team put together by Mintek pending the recruitment of a strategic equity partner. An Amendment Bill (to the Alexkor Act) has been introduced to the National Assembly that will eventually see the restructuring of Alexkor and the separation of mining activities from the non-mining activities.
The latter has become colloquially known as Alexander Bay Trading (ABT) and currently controls a series of farms and an aquaculture project. It is of critical importance that provincial and local interests are protected as the privatisation of the ABT projects proceeds. This will entail carrying out a thorough assessment of the agricultural and aquacultural development potential along that part of the lower Orange River and the Namaqualand coast that is currently controlled by Alexkor as well as areas upstream of Alexkor. I am determined to ensure that our objectives of long-term sustainable economic growth and empowerment are key features of the agricultural economy of the Richtersveld. The Gariep SDI and the management of ABT have agreed to collaborate on the appraisal of possible agricultural project opportunities at Alexkor.
4 000 ha of water rights
Linked to the developments mentioned above, is the project of 4 000 hectares of water rights which will be implemented this year. Project proposals are being evaluated for the possibility of growing paprika at the Goodhouse project as well as establishing its processing plant at Springbok.
A decision on the future of the Doring River Irrigation project will be taken this year. A survey will be conducted which will help us to determine an accurate budget for the establishment of an experimental farm that aims to test the sustainability and feasibility of growing high value crops in the area. An amount of R 500 000 has been set aside for this project.
A further R 500 000 has been set aside for the hydroponics project at Windsorton.
The farmers' settlement programme will also receive attention this year. The infrastructure at the majority of state farms will need to be repaired. However, due to budgetary constraints only two farms will receive funding from this year's budget. An allocation of about R 110 000 has been set aside to repair infrastructure at Taaiboschdraai. A further R 574 000 has been put aside for the Carter Block farm, which has to be disposed of during the current financial year. A concerted effort will be made to lease state farms to previously disadvantaged communities based on principles of commercial agriculture. Good progress has also been made on the implementation of the new Land Redistribution for Agricultural Development Programme. This programme seeks to promote emerging agriculture on a sound commercial basis.
Food Security
Mr. Speaker, the second focus is Food Security, which is an important policy of government to ensure food security for sustainable livelihoods. In line with this, my Department will focus on 14 household food security projects. A research programme has been initiated which aims to investigate food security issues such as the use of home remedies for the control of garden pests and diseases instead of expensive chemicals; season ability of various vegetable crops and irrigation options. Alternative farming systems and enterprises such as organic farming, the value of medicinal plants and alternative crops such as chickpea and canola will also be investigated.
As the house is aware, during the later part of last year the province had an outbreak of Anthrax in the Barkley West/ Kimberley region. My department dealt with this matter swiftly to prevent further outbreaks, and we are in a position to deal with such matters in the future. To this end, some of my departmental staff were deployed into the KwaZulu Natal region to assist with the Foot and Mouth disease outbreak, and we are geared up to assist in any such national disaster. Members of the house, as we have stated before, the problem of Foot and Mouth disease outbreak is unlikely in the Northern Cape, this is due to effective animal movement control and regular border inspections.
The livestock improvement programme will be re-introduced this financial, and will aim to improve livestock quality and value for the beneficiaries of land reform.
On the issue of Kanal Bunt infecting the wheat crop in the Douglas region, the department is treating this problem with the utmost priority and urgency. An amount of R 1,5 million has been set aside by the National Department of Public Works in order to alleviate poverty through the public private partnership initiatives by implementing infrastructural development projects for poverty alleviation. One of the following three areas Riemvasmaak, Schmidtsdrift and Skeyfontein are being considered for possible implementation of such projects.
Environmental Sustainable Framework
Mnr die Speaker, die derde belangrike aspek in ons poging om die natuurlike hulpbron te bewaar en te bestuur is om die groot gevaar van verbrakking en versuiping van ons besproeiingslande te stuit en te stabiliseer. Dreinerings probleme in die Vaalharts gebied is vinnig besig om kritieke afmeting aan te neem. Groot oesverliese word reads as gevolg hiervan ondervind.
Soortgelyke tendense vind plaas in die Benede Oranje gebied waar ook ongeveer 35 000 hektaar besproei word. Die grootte en belangrikheid van veral die wingerd bedryf in hierdie area en ook vir die hele Provinsie noodsaak dus 'n in diepte ondersoek na hierdie probleem.
Environmental management will receive substantially more attention this year. The personnel problems as well as the budget allocation for the sub-directorate have been addressed.
A total of nine communities/municipalities have been identified for the implementation of clean-up projects in our drive to implement the environmental awareness programme. These include, Calvinia, Frazerburg, Loxton, Klipfontein (near Garies), Williston, Prieska, Kimberley landfill site, Colesburg and Noupoort. This programme has already been introduced to some schools in Namaqualand and Kimberley.
Further, R50 000,00 will be allocated to the Schmidtsdrift plastic bag project, which will not only clean the environment but also provide much needed jobs by converting waste plastic bags into saleable products such as mats and bags. The Land Care programme initiated some three years throughout the Provinces still continues today. In the Kalahari area, over 14000 ha of land has been fenced and invasive plants have been eradicated. In the Jakalskop and the Suid-Bokkeveld areas, infrastructure, work opportunities and services have been implemented. This programme will continue in the future and the experience gained to date has put us in a good position to achieve a sustainable land management programme.
My department has prepared a detailed flood disaster and relief management plan for the floods of March 2000 in the old Hantam and Lower Orange regions. As the house is well aware in the event of such disasters, my department is dependent upon National Government for finance, I am still in discussions with the National Minister, and hope to resolve this issue in the near future. On the Namibian cross border and international front, a number of initiatives are underway to ensure environmental sustainability and economic growth, these include the Ai-Ais/Richtersveld transfrontier conservation area and the development of the Ramsar site at the Orange River mouth.
With regard to coastal management, South African and British governments signed an agreement this year by which Britain will support and fund coastal management and development programmes over the next two years. The Northern Cape will be one of the beneficiaries of this agreement. A project co-ordinator will be appointed to implement coastal clean-up projects and other related poverty alleviation projects. Communities on our 350 km coastline will stand to benefit from this programme. We will also ensure that a sound environmental management framework is followed with the offshore mining of gas and petroleum some 80 - 100 km off Hondeklipbaai.
Effective Delivery and Administration
Mr. Speaker, the fourth and last focus area is Effective Delivery and Administration. My Department will un-bungle some sub-directorates in order to ensure proper accountability and to entrench the Batho Pele principles. Added to this will be the implementation of the service delivery improvement programme. Appointing more state vets will also strengthen veterinary services. This will firstly ensure that proper disease surveys and surveillance are undertaken and secondly that export of meat and meat products meet the phyto-sanitary requirements.
Mister Speaker, as you know the Cabinet has taken a resolution to focus on the rural areas of the Northern Cape for our Cabinet Meets the People Programme. In particular, this will mean visiting the many restitution cases in the Province to ensure fast and effective delivery of services and agricultural programmes. To date the Cabinet has met at Riemvasmaak and Schmidtsdrift, and I am pleased to report that structures have been put in place to speed up delivery. However, of great concern to me are the recent events in Kuruman where certain individuals have taken it upon themselves to invade land without going through due process and procedures. This is against government policy, however, whilst we do accept that there have been some delays in the implementation of some restitution cases, we are confident with the structures put in place that these delays will be overcome during this financial year. I would like to mention that I have arranged a workshop in Kuruman within the next three weeks to discuss matters with the communities.
On a very positive note, I am pleased to inform the house that Platfontein, the !Xu and Khwe resettlement, is well on track, and in fact the implementation of services is underway as I speak, and the !Xu and Khwe families will start to move off Schmidtsdrift by the end of this year.
Honourable Speaker, I know that the challenge that lies ahead of me is a great one, but I am sure that with the assistance of my competent staff, my colleagues, farmer unions and associations and supporting agencies we will achieve significant sustainable growth in the province. To these supporting structures, I would like to thank you and hope that our good working relationship continues.
Finally, Honourable Speaker, Premier, Deputy Speaker, Members of the House, Comrades, Ladies and Gentlemen; I do not need to remind the House, with the possible exception of some DA members, that today 46 years ago the Freedom Charter was adopted in Kliptown. The principles adopted in the Charter still direct and focus our activities of today and in particular my approach to my portfolio and department and to quote the Freedom Charter: "Land shall be shared among those who work it, and the people shall share in the country's wealth. "That our country will never be prosperous or free until all our people live in brotherhood, enjoying equal rights and opportunities."
I thank you, and now table my budget for debate.
Issued by Agriculture, Land Reform, Conservation and Environment, Northern Cape
26 June 2001