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Mr. Speaker,
The Premier Ms. Direko,
Members of EXCO,
Chairmen and Members of Portfolio Committees,
Members of the Provincial Legislature,
Members of the National Parliament,
Mayors and Councillors, other Dignitaries,
Farmers of the Free State,
Ladies and Gentlemen.

1. Introduction: Temo Ke Kgwebo (Farming is Business)

"Whatever the setbacks of the moment, nothing can stop us now! Whatever the difficulties, Africa shall be at peace! However improbable it may sound to the sceptics, Africa will prosper." -President Thabo Mbeki (1996)

In 2001, the African Heads of States drafted a document called NEPAD (New Partnership for Africa's Development). This document was drafted with many objectives and time frames, but the core principles of NEPAD are vested on two pillars of economic and social development, aimed at ensuring the rebirth of African continent.

In the State of the Nation Address (February 2003), President Thabo Mbeki said, the tide has turned, and truly, as a patriot I agree that the tide has indeed tuned. The President further alluded to the fact that it is our task to take this tide at the flood further, to progress towards the achievement of the goals for which so many of our people have sacrificed.

"This is the perspective that will inform our work as we strive to meet our obligations to our people, and the people and the peoples of Africa and the world."-

President Thabo Mbeki

Ladies and Gentlemen, during the Opening of the Legislature at the beginning of this year, the Premier confirmed the President's statement by mandating us to make Africa our home while remembering NEPAD. As we continue to build a people's contract for a better Free State, we in Agriculture will comply with this vision. We will add value to this initiative by conveying message to the people of the Free State making them aware that an agricultural lion is awakening.

This brings me to the theme of my budget speech for this year, Temo ke kgwebo (Farming is business).

Mr. Speaker, the agricultural produce in front of you is the product of emerging farmer enterprises throughout our Province and I would like to thank these businesswomen and men who continue to roll back the frontiers of poverty in their respective communities.

Improvement in agricultural performance is a prerequisite for economic development on the African continent. In this drive for economic development the Department of Agriculture, together with all the citizens of this Province, would like to contribute its share. This Budget is development orientated, having learnt from the experience of the past; the distance still to be completed; and the resources allocated, as we strive: "To be the leading Department in South Africa that promotes social and economic development of Free State communities by rendering agricultural services."

2. Sectoral Overview

An overwhelming number of problems in South Africa can be related to poverty. The national unemployment rate, estimated at 29,4%, is a major factor contributing to the high poverty levels. The presence of poor people is far higher in rural areas where approximately 41,3% of those living in poverty are to be found. Sixty-two percent (62%) of the Free State population are living in rural areas. Rural areas play a significant role in both provincial and national economies.

In the State of the Nation address by the President and the opening of the Premier of the Free State Legislature in 2003, it was stated that balance and stability have been achieved in the country on a macro level. I however believe that the growth rate if the economy is still too low.

Our challenges are to reverse the previous inequitable resource distribution towards the disadvantaged and to support a sustainable standard of living, while encouraging the continued success of the commercial farming sector.

Agriculture is however a complex and highly organised sphere of business that is managed in a high-risk environment influenced by variable climatic conditions. A farmer has to understand these complexities in order to survive.

The challenge for us a Department was and still is to promote and facilitate the development of new business orientated entrepreneurs in the agricultural sector while maintaining the support to already established entrepreneurs. The new entrepreneur should ultimately be fully equipped to compete in the agricultural sector, and be able to create jobs for others while creating a sustainable livelihood for him/herself.

We recognise the Free State as an Agricultural Province. Agriculture contributes a 6,49% to the gross Geographical Product of the Province, making it the third biggest contributor to the economy of the Province, after mining and tourism. As the gold and diamond based contributor to the economies decline, economic development in the agricultural sector must be promoted. All our initiatives should be directed towards unlocking the agricultural potential.

For the year ending 31 December 2002,the gross income for Free State farmers amounted to about R11 267m. This represents an increase of 40,4% compared to the previous year. Free State farmers earned approximately R7 365m from field crops. They produced about 33% of maize, 51% of sorghum and 32% of wheat in the country. This makes them the largest producers of grain crops in South Africa. The Free State is also the second largest producer of sunflower seed, groundnuts and dry beans.

The income from livestock production increased by 18,2% for the year ending 31 December 2002. Wool and dairy production are two biggest contributors to income from livestock production. 23% of wool and 18% of all dairy products in South Africa are produced in the Free State.

The Free State is regarded as the breadbasket of the country, and this Province should maintain and improve that status.

The creation of jobs and the development of our African Continent depend largely on the development in the Agricultural Sector.

3. Preview for this Financial Year

Mr. Speaker, in order to comply with the President's request that we must take the tide at the flood further towards the achievements of our National goals, this Department has identified five areas of critical importance aimed at:

* Agricultural technical support and training to Land Redistribution beneficiaries, existing farmers and prospective entrants to the Agricultural Sector;
* poverty eradication and ensuring household food security in the Province;
* promotion of and technical support to agri-businesses in the Province;
* optimal utilisation of commonage land in order to improve agricultural production and
* good corporate and cooperative governance.

This does not mean that there are no other areas of great concern. The aforementioned areas are those identified by our Department as critical and priority within the resources available during this financial year.

3.1 Agricultural technical support and training to Land Redistribution beneficiaries, existing farmers and prospective entrants to the Agricultural Sector.

Extension and Support

The main focus of this critical unit will be on economic empowerment initiatives for PDIs including women, the disabled, as well as for the youth. Farming, agro-production and processing will be promoted and supported.

The LRAD programme, which is being implemented in cooperation with the Department of Land Affairs, is possibly the best example of a positive and successful programme aimed at settling new farmers from previously disadvantaged communities as commercial farmers whilst providing them with security of tenure. LRAD is strongly supported by the Department of Agriculture.

Integrated efforts between these two Departments have led to the Free State being the forerunner in South Africa in Land Distribution. In my Budget Speech last year, I promised that by the end of the 2002/2003, we would have spent R23mil on land redistribution and I am grateful to announce that we have achieved that target and required a further R2m to fast-track the process. Since August 2001, LRAD has approved 312 projects, benefiting 2 047 of our people to the value of R76 4m and 58047 hectares of land are being transferred to previously disadvantaged. The Land Bank has contributed loans to the value of R13; 2mil while R25mil is budgeted in this financial year to further expand this programme.

The Department will also continue rendering extension and technical assistance to farmers whose land has been returned to them by means of officially approved Restitution claims.

Mr. Speaker, I am honoured to inform you that some of these LRAD and Restitution beneficiaries are present here today and I would like to welcome them and thank them for their presence. Our Extension and Development Directorate will continue to render extension and development support services to the farmers of the Free State and this Directorate was allocated R30 493mil for the 2003/04 financial year.

Technical and Professional Support Services

Veterinary Services

The role of Veterinary Services is critical to our Province. Services such as Veterinary Animal Health, Veterinary Public Health and Diagnostic services to farmers and the public in general will continue to be improved and promoted. These services include diagnosing diseases, disease control in animals and the prevention of the spread of such diseases to humans by direct contact or through the consumption of contaminated food. Providing these services ensures healthy animals, safe food and healthy people.

Export product surveys will continually be done to ensure the Free State Province remains free from foot and mouth disease and BSE (Mad Cow Disease). The Free State Department of Agriculture liases closely with the National Department of Agriculture in this regard.

For the certification of export dairy products and meat, the Department has already started with the training of Meat Inspectors, Animal Health Technicians and Veterinarians in the certification of abattoirs, factories, milking parlours and game farms, to maintain export standards.

In order to prevent the spread of food borne and zoonotic diseases, regular inspections will be undertaken to ensure efficient hygiene, effective meat inspection, proper slaughtering of animals and the correct way of waste disposal.

Brucellosis and Sheep Scab will receive our full attention with the purpose of reducing these incidences dramatically.

Mr Speaker, R22 721m is allocated to this function for the 2003/2004 financial year.

Land Care & Soil Conservation

Land Care is a community based and government supported approach to the sustainable management and use of agricultural natural resources. The provisioning of services, such as fencing, surveying and designing reservoirs, pipelines, earth dams and water holes for stock-water, is the responsibility of the Department's Land Care and Soil Conservation unit.

Last year I indicated that R1 4m National grant funds would be spent on Land Care projects. I am pleased to report that our Department has managed to spend R1 552m. Various projects such as fencing, water reticulation for stock and irrigation are continually being implemented. R800 000 capital expenditure of infrastructure spent from this programme was specifically allocated to newly established farmers. It is anticipated that R1 8m National grant funds will be spent during this financial year.

Our Department also realistically expects that through this financial investment, we will assist in the creation of approximately 500 job opportunities in the Province.

Mr Speaker, this component receives R8 03m from this budget, which includes the R1 8m national grant funds for particular Land Care Projects.

Specialised Service

The Department's Specialised Services Unit comprises the following components:

* Agricultural Economic Services
* Farming Information Services
* Engineering Services

Agricultural Economic Services

There are well-established formal marketing systems in the Free State managed by the agricultural co-operatives and companies. Linkages between these formal channels and small-scale producers will be established during the ensuing financial year. Funding to generate markets and marketing facilities within rural areas will be encouraged. There is a general lack of agricultural infrastructure in the former homeland areas; such as Qwa-Qwa and Thaba Nchu and for this reason a review of agricultural infrastructure for marketing will have to be undertaken.

The Department is responsible for the identification of export opportunities and is in the position to render agricultural economic advice and support in this regard through collaboration with and participation in the Agricultural Trade Forum, an initiative of the National Department of Agriculture. Partnerships with the private sector are however crucial for any export initiative to be successful. A good example of such public/private partnerships is the Bethlehem Apple Project - a development project exporting approximately 30% of its production to other countries.

Investor confidence leading to increased domestic and foreign investment in agricultural activities and rural areas in free State should be improved. Access to markets is vital in order to ensure an economically viable agricultural sector. The Department will therefore render agricultural economic services and facilitate the development of network infrastructure that will open communication networks with various markets. Investor confidence is essential to achieve a prosperous and growing Agricultural Sector.

Study groups serve as platforms where farmers exchange ideas and practices on how to improve their farming businesses. Financial and diagnostic information is analysed through systems of the Department, the result of which is discussed in these study groups.

"The Government will lay greatest stress on black economic empowerment that is associated with growth, development and enterprise development and not merely redistribution of existing wealth." - President Thabo Mbeki

Farming Information

An effective risk management strategy is critical to deal with all the major risks in the form of climatic variation, pests and disease outbreak in the Province. An early warning system that includes access to timely, accurate, relevant and free information about weather conditions and other variables will be developed for all farmers in the Free State Province. This will be made available through the Agricultural Geographic Information System. The wide usage of systems will be encouraged.

Engineering Services

The Department will strongly support infrastructural development. Typical services required by this initiative are support of development and utilisation of structures and equipment, such as broiler houses, piggeries, dairies, cattle handling facilities and the yet untapped enterprise of aqua-culture (for example fish farming) in the Free State.

In crop production, mechanisation planning, which includes animal traction, is a great need. Irrigation farming with water source investigation and development, irrigation system design and management and energy source selection and quantification, form a major area of support services rendered by this component.

Mr Speaker, for 2003/04 financial year a total amount of R6 3m has been allocated to the Department's Specialised Service Component.

Glen Institute

Formal and Non-Formal Training

The last financial year witnessed training courses being provided both at Glen College and on-farm at the Department's Non-Formal Training Unit. Eight hundred and thirty - five (835) farmers benefited from these courses. It is anticipated that 1155 farmers will be trained in this financial year in various courses such as crop production, vegetable production, management of finances, livestock and small stock production.

Over and above the 80 enrolled students at the college for the 2003 academic year, the total Department envisages that, with the implementation of new programmes, the total enrolment will increase to approximately 200 fulltime students. The current racial disparity with regard to students representing in the College will hopefully also be addressed during this process.

Mr. Speaker, education is the key to success. Providing prospective emerging and commercial farmers with appropriate training and education will lay the foundation for the success and sustainability of these farmers in the future. The Glen Agricultural Institute aims to improve agricultural education to students and to maintain its position as a centre of excellence, where farmers can learn the latest technologies, acquire information and experience practical farm simulations.

The Glen Agricultural College, which incorporates the Department's Non-Formal Training Unit, receives R10 274m for this financial year.

Glen Farm and Experimental Facilities

The Glen Farm is responsible for the maintenance of various enterprises and the efficient management thereof. These enterprises are vital to the research unit and the College for purposes of research and training.

Cutting edge innovation and knowledge are crucial for sustained competitiveness and profitability. The Research Unit of the Department will undertake farm systems research and applied research at Glen Experimental Station.

Research facilitates, the Glen Farm, animal herds and crop fields will be efficiently managed and maintained. Strategic partnerships will be considered with independent researchers and developers, who will utilise these facilities, herds and fields.

Furthermore the farm will be operated on a commercial basis to maximise profits for the enterprises concerned.

A budget of R5 167m is allocated for the execution of these functions.

Research

New technological developments and alternative enterprises need to be continually researched with a view to expand and diversify existing farming practices in the Province. It is our intention to facilitate and promote agro-production and processing, primarily in the fields of crop and animal production and pasture management, as a means of economic development and job creation. The soil and water laboratory complements the research activities and performs analysis of soil and water samples for farming communities at large.

The technique of Water Harvesting is an example of research performed at the Glen Institute. Thaba Nchu Trust communities such ad Woodbridge and Yoxford are already utilising this technique and are reaping the fruits of these latest technologies. We are pleased that members of these communities, as well as members of ARC, should join us today and I hope that they will share their experiences and techniques with you in our exhibition tent after the formalities. Thank you Dr. Van Rensburg and your team at ARC for the technical support and training provided to these communities.

Mr. Speaker, the Department's research component will receive R10 473m from the Departmental budget for the ensuing financial year.

3.2 Poverty eradication and ensuring household food security

Poverty eradication

In this effort to address the problem of poverty in Free State, the Department will deal with the relevant variables related to poverty. Strategies and policies to uplift the standards of living of the poor will be focused and orientated towards the root causes of poverty and not just its symptoms. These strategies will be specifically directed at expanding economic and job opportunities.

"Despite continuing improvements in the capacity of the economy to create new jobs, the issue of unemployment remains one of our major challenges. The solution to this problem is dependant on achieving the necessary rates of economic growth and development. Accordingly, everything we have said about the economy also relates directly to the issue of job creation."-President Thabo Mbeki

Mr. Speaker, the challenges affecting the eradication of poverty keep changing, and therefore we nee to adapt to these changes. With newly appointed personnel at all levels, I am confident that the people of the Free State will benefit from the awakening that I see in both poverty alleviation and service delivery improvement initiatives launched by this Department.

As part of our strategy to address poverty and the needs of poor people, our Department has developed a Strategic Plan to combat poverty and the same promote Agriculture Economic Development.

The success of our Strategic Plan will be measured by the achievement of the following strategic goals set for our Department for the next three years:

* To provide agro-processing and production, job creation and poverty alleviation;
* To provide agricultural economic an market development services;
* To facilitate optimisation of plant and livestock health, production and product safety;
* To improve stakeholder relations,
* To monitor natural resources and infrastructure utilisation and management;
* To conduct research and manage the experimental facilities;
* To offer formal and non-formal training programmes;
* To maintain intradepartmental excellence;
* To enhance effective financial management in full compliance with relevant Acts and regulations.

Ensuring household food security

According to recent reports the basic cost of living had increased by a staggering 17,1% at the end of 2002. This, according to statistic, marked the highest annual increase in 30 years. Sixty percent of his cost increase was for food.

By the end of 2002 the price of maize meal had increased by 110%, potatoes by 82%, cabbage by 60% and milk powder by 38,5%.

Increasing unemployment, result in more and more people being dependant on social grants. This in turn indicates the necessity for the Agricultural Sector to contribute towards food security and income.

In response to these challenges, our Department has introduced standard Food Security Starter Packs to the value of R400-R4 500 per needy households. These include some or all of the following: garden tools, winter and summer seeds, manure, fertiliser, garden hoses, 20 one-month old chicks, feed for the chickens and small poultry house.

The situation is critical at household level, where some 35% or 14,3million South African households are vulnerable to food insecurity. Because female-headed households with children, HIV/AIDS victims and the elderly are the most vulnerable, these categories of people will receive priority in all programmes planned by this Department.

During the current financial year the Department plans to continue this programme in the Northern Free State, Lejweleputswa and Xhariep districts. Schools, clinics and churches will also be targeted.

These initiatives of the Department, Mr. Speaker, are over and above those of the National Integrated Food Security Programme administrated by the Department of Social Development in co-operation with all Provincial Departments of Agriculture and various other parastatals.

3.3 Promotion of and technical support to agri-businesses in the Province

CPF-SP

These activities of the Project Management Unit in co-ordination with the functions performed in the Department's Chief Directorate for Agricultural Development and Technical Services comprise the core business of the Free State Department of Agriculture.

Towards the end of 2002, a rider to the Financing Agreement with the European Union for the Community Project Fund Support Programme was approved and signed by all relevant parties. In terms of the provisions contained in this agreement, the Department was obliged to amend and/or improve various aspects pertaining to the administration of this project. These amendments have resulted in the Department's strategic realignment of agricultural project development.

Newly settled farmers will be supported through the Community Project Fund Support Programme (CPF-SP) to promote the establishment of specific enterprise related businesses.

The Department, through its CPF-SP plans to spend R37 686m, will benefit 7 876 people by the end of 2003/04.

Over and above the funding received from the EU, the Department has allocated a further R6 216m Departmental funds for administrative support to this programme during the 2003/04 financial year.

3.4 Optimal utilization of commonage land in order to improve agricultural production

Commonages are an important resource for the poorest off the poor who are not able to afford to purchase land as individuals, or who wish to start farming on a small scale at the town in which they live.

At present, many residents either so not have access to the commonages or have access in an uncontrolled manner. This results in inappropriate and overuse of the commonages and the deterioration of this agricultural resource.

Funding for development of projects is not accessible to many who wish to use commonages for agricultural development purposes. In order to access funding from CPF-SP for the development of farming projects on commonage land, a lease agreement needs to be entered into between the beneficiaries and local municipality. A minimum of 9 years 11 months is stipulated in the lease agreement. This is being brought to the attention of the local municipalities.

The challenges facing local governments and current and potential users of commonages are amongst others:

* Facilitating a common vision for sound commonage management;
* Facilitating the establishment of commonage management plans, groups and processes;
* Facilitating the establishment of specific user groups;
* Facilitating the establishment of legal entities for user groups.

It is envisaged that all commonages should have:

* A legal constituted, democratically elected, fully representative commonage management structure;
* A duly signed, functional lease agreement between the local municipality council and the commonage management committee;
* Commonage users/interest groups that have been legally constituted and which have lease agreements to the land they require to establish their businesses;
* Commonage users/interest groups, which will have clearly defined and realistic goals, which can be used for CPF-SP applications and have the drawing up of business plans.

Mr. Speaker, our Department realistically expects that through this anticipated commonage development effort, we could assist in the creation of at least 200 employment opportunities in the Province.

3.5 Good corporate and co-operative governance

Management

Mr. Speaker, it is only during the 2003/04 financial year that the Department will have recovered sufficiently from its previous shortage of financial and human resources. The Department is now in position to place renewed emphasis on the following aspects of its functional responsibility:

* Enhanced provision of extension services;
* Enhanced provision of agricultural infrastructure;
* Expanded veterinary services;
* Accelerated land reform and support;
* Improved training and research capabilities;
* Improved corporate and co-operative governance;
* Effective and efficient financial management and control.

During 2002/03 the Department completed the appointments in its top management structure. It is envisaged that during this financial year the management programme of the Department will be further strengthened by the appointment of the remaining senior management echelon posts still vacant in the Department.

The financial management function of the Department was firmly established during 2002/03. New structures for financial control are currently being developed and considerable resources will be invested in these structures.

Implementation of the PFMA was a priority in the Department after the appointment of the CFO. During this financial year, this Directorate will, over and above giving substance to a number of new and unique functions, also consolidate financial activities formerly undertaken by the Chief Directorate Corporate Services.

The appointment of a Director for Management Support Services during this financial year will complete the senior management cadre of the Corporate Services Chief Directorate.

Management of the Agricultural Development and Technical Chief Directorate will be further enhanced during this financial year by the completion of the appointment of provincial District Manager. This should fast-track the Department's objective of decentralising agricultural functions to the coalface level of service delivery; service delivery being taken to an estimated 320 000 clients of the Department.

Strategic Planning, Monitoring and Evaluation

The approval of the rider to the current Financing Agreement with the European Union has necessitated critical amendments to the Department's current monitoring and evaluation system. This system is utilized in the Department to monitor the progress and impact of CPF-SP projects.

A further amount of Euro 122 000 was made available through the rider for the much needed improvement and further development of the Departmental M & E system, necessitated by procedural changes in the administration of CPF-SP, as well as other requirements determined by the European Union.

During the last quarter of the 2002/03 financial year, the Department revised its Strategic and Operational Plans for Agriculture. It is necessary that the implementation of these plans is closely monitored to determine progress and efficiency in the Department.

Over and above the 122 000 Euro (approximately R1m) to be funded by the EU, an amount of R999 683 is allocated to this unit for this financial year.

Financial Planning and Control

When government is voted into office, a contract of accountability is entered into between government and the citizens it serves.

Meeting the above responsibility requires reliable financial information. The Financial Management Directorate maintains financial and operational systems of internal controls. These controls are designed to provide reasonable assurance that transactions are conducted in accordance with management authority, that assets are adequately safeguard against material loss and that unauthorised acquisitions are avoided.

The Department will establish an audit committee in order to ensure public accountability. Both the Internal Audit Unit and the Audit Committee will have unrestricted access to the office of the MEC and management, as well as employees' records.

Effective risk management is integral to the Department's objective of consistently adding value to the operations of the Department. The Department will continuously develop and enhance its risk management and control procedures to improve the mechanisms of identifying and monitoring risks. For this purpose the Department is currently investigating the acquisition of asset and inventory control systems, which will enable the Department to exercise improved control over the management of assets and equipment.

Mr. Speaker, the Financial Management function of the Department will receive R12 134m during this financial year.

Special Programmes

During 2003/04 the Department will give special attention to internal programmes aimed at addressing youth and gender issues, HIV/AIDS, woman and child abuse, and employment equity.

All programmes initiated by National and Free State Provincial Government will be implemented as effectively as possible within the available resources for 2003/04.

In view of the fact that cost implications of these programmes are difficult to estimate, all components of the Department will be expected to contribute a proportionate share towards the effective execution and implementation of the initiatives launched at National and Provincial levels.

Corporate Services

The relocation of the Head of the Department from Glen to Bloemfontein in the interest of greater efficiency, accessibility and better integration with provincial activities, dominated activities during the 3rd quarter of 2002/03. This move has greatly improved efficiency and effectiveness in the Department, especially with regards to saving of time spent travelling, improved communication, better co-ordination, physical accessibility to clients and corporate solidarity amongst staff. The Department will continue striving to increase its visibility and accessibility to all clients throughout the Province.

Full deployment of IT resources is planned for this financial year to further improve communication and service delivery. Service level agreements are currently being considered for the engagement of all IT service providers in order to enhance, maintain and secure electronic communication and processing throughout the Department.

In the true spirit of Batho Pele the Department recently competed its Skills Development Improvement Plan, as well as the Departmental Services Delivery Improvement Plan, as well as the Department Service Delivery Improvement Plan. These initiatives, together with a revised Human Resources Management Plan, which should fully support and widen the base for unemployment equity targets, will inevitably result in improved service delivery.

Corporate Services will contribute to the delivery of vital supporting the form of security services, legal and labour relations services and an effective and efficient communication service during 2003/04. An amount of R50 265m Mr. Speaker is allocated to the Corporate Service Chief Directorate for his purpose.

"Without an efficient and effective public service, it will be impossible for us to register the advances that we are capable of." - President Thabo Mbeki.

4. Budget Summary

Mr. Speaker, the total budget of the Department for the 2003/04 financial year amounts to R170 141m and I am honoured to present this budget. The functional responsibilities of the Department are accommodated and will now be executed from a structure comprising only five programmes viz:

Programme 1: Management, comprising the Offices of the Executive Authority and the Head of the Department, respectively responsible for the formulation of agricultural policy in the Province and the planning, organisation, co-ordination, financing and control of all agricultural functions. An allocation of R5 871m has been assigned to this programme. It is worth mentioning that included in the allocation of R5 871m is an amount of R500 000 for disaster management and a further R1 5m for the enhancement and improvement of further support initiatives and contingency purposes.

Programme 2: Agricultural Development and Technical Services, formerly Operations, is allocated R95 655 m. This programme is structured to deal with the core functions of the Department, namely extension, development, veterinary and agricultural technical support and training.

Programme 3: Financial Management is structured as a programme to accommodate the mandate and functions of the Chief Financial Officer, internal audit, risk management and fraud prevention and the financial accounting and provisioning services of the Department. R12 134m have been set-aside in the next financial year.

Programme 4: Project Management Unit of the Department deals with and investment programme jointly funded by the European Union and the Department. The Department has allocated R6 216m from Provisional Treasury funds for the administration of this programme. Investment capital (i.e. the 1/3 contractual contribution of the Department) will be sourced from rollover funds from previous years, to the value of approximately R3 69m. This is done in order to fulfil specific requirements of the Financing Agreement with the European Union and to better structure the programme for delivery.

Programme 5: Corporate Services has been allocated R50 265m. This programme renders supportive administrative, legal and security functions to the Department and also makes provision for the additional costs necessary for the improvement of service conditions and the future decentralization of certain auxiliary and other administrative support functions to the Department's line responsibilities.

5. Conclusion

Mr. Speaker, on 11 March 2002 I started my budget speech, that it was the intention of this Department to facilitate and promote agro-production and processing as a means of economic development and job creation.

The challenges spelled out to you today which face us as agriculturalists of the Free State, have changed very little during the past year. I indicate at the beginning that the theme of my budget speech is Temo ke Kgwebo (Farming is business). In farming the challenges linked to a complex and highly organized and technical sphere of business conducted, in a high risk environment and influenced by humanly un-controllable variables, such as change in climatic conditions, global economic and political changes, international conflicts, crop and animal diseases and a host of others, to name but a few, remain the challenges for the future.

The running of a farming business is not for the faint-hearted and requires people with vision who are not only empowered, but also effectively trained.

I pay tribute to the farmers of the Free State, who under my adverse climatic and socio-economic conditions have once again demonstrated their commitment to farming.

Finally, Mr. Speaker, I wish to thank the Head of my Department, Mr. William Barnes, the Executive Management and each and every staff member of the Department for their hard work and commitment in serving the Free State community. May you continue doing this sterling work.

I would further like to thank all stakeholders in the Agricultural Sector, for instance all organised farming institutions, financiers, academic institutions and others, for their contributions, also a word of thanks to our sisters Departments in Agriculture namely Department of Land Affairs, Land Bank and the Agricultural Research Council for their support and assistance.

Also allow me to extend a word of appreciation to the media for positive contribution towards economic and Agricultural upliftment of our Province.

Lastly, but by now means the least, my sincere thanks to the leadership of the ANC, its leagues and alliances for the privilege to represent them in this vital portfolio. You daily support is greatly appreciated.

I thank you.

Issued by Free State Provincial Government

22 May 2003