Hon Speaker, hon Minister and Deputy Minister, hon members, leaders of organised agriculture if they are present, government officials, ladies and gentlemen, I am a new member of the National Assembly and also of this committee. That is why it is my privilege and honour to participate in this first Budget Vote for agriculture in the fourth democratically elected Parliament.
Voor ek begin, wil ek net iets noem. Ek is self ook 'n boer, maar ek het nooit geweet waar ek inpas nie. Is ek 'n opkomende boer of is ek 'n kommersile boer? Ek weet nou waar ek inpas. Die agb Adjunkminister het genoem waar ek inpas. Ek is nou besig om 'n ondergaande boer te raak. [Gelag.] [Tussenwerpsels.] (Translation of Afrikaans paragraph follows.)
[Before I start, I would just like to mention something. I am a farmer myself, but I never knew where I fitted in. Am I an emerging farmer or am I a commercial farmer? Now I know where I fit in. The hon Deputy Minister mentioned where I fit in. I am now becoming a farmer who is going under. [Laughter.] [Interjections.]]
When President Zuma spoke to the newly elected ANC MPs on 14 May 2009 at our first caucus meeting, he made it clear that past practices in which ruling party MPs shied away from criticising the executive should be a thing of the past. He said that MPs must not be user-friendly to the executive, especially those not delivering. He said that in our case, he believed, our executive would deliver because he knew them very well, and that Parliament had a serious role to play to ensure that government delivered.
Agb Speaker, die uitvoerende bestuur en die amptenare van die Departement van Landbou kan verseker wees van ons komitee se samewerking en ook opbouende kritiek. Deur saam te werk kan ons baie vermag. (Translation of Afrikaans paragraph follows.)
[Hon Speaker, the Executive Committee and officials of the Department of Agriculture can be assured of our committee's co-operation and also constructive criticism. By working together we can accomplish a great deal.]
In 2003, six years ago, we signed the Maputo Declaration with other African Union heads of state and governments in which we committed ourselves to allocating at least 10% of our national budget to agriculture. In analysing the agricultural budget, it is clear that it still remains far below the commitment we made in Maputo. It dropped by 9,8% in real terms in 2009-10 compared to the previous year of 2008-09. But it is expected to increase in the two outer years of the MTEF period.
The department received a budget of R2,792 billion during the 2009-10 financial year, which represents only 0,65% of the total allocation of the national government. And, if we compare that now to the 10%, it really fell far short. I would like to make an urgent appeal to National Treasury to improve this situation, given the important role agriculture plays in our poverty alleviation programmes and the country's food security.
The Polokwane resolutions called upon us to embark on an integrated programme of rural development, land reform and agrarian change. The budget must focus on these resolutions. Agrarian reform and rural development is also one of the five key priorities identified in our election manifesto. I would like to quote from the President, his Excellency J G Zuma, in the state of the nation address this year. I quote:
Working together with our people in the rural areas, we will ensure a comprehensive rural development strategy linked to land and agrarian reform and food security.
Na aanleiding van die bogenoemde beleidsrigtings van die ANC-regering is dit duidelik dat die landbou 'n baie belangrike rol speel. In my debat sal ek vervolgens meer konsentreer op program 3, die landbou- ondersteuningsdienste.
Tans is die grootste probleem met grondhervorming die swak ondersteuning wat nuwe, klein en kontantarm boere kry as hulle op nuwe grond gevestig word. Daarom is dit noodsaaklik dat daar 'n deeglike ondersoek gelas moet word om vas te stel waarom sekere boere wat deur die staat op grond gevestig is, onsuksesvol is. Wat is die probleme wat hulle ervaar? Die beginsel van 'gebruik dit of verloor dit' kan dan wel later toegepas word na hierdie opkomende boere wel hulp gekry het en nog steeds nie suksesvol kan boer nie. Dan het ons geen probleem daarmee nie. 'n Deeglike ondersoek sal van kardinale belang wees.
Die landbou-ondersteuningsdienste beslaan die grootste deel van die departement se totale begroting, naamlik R1 696,2 miljoen. Dit is 60,73% van die departement se totale begroting. Dit het met 9,08% toegeneem in vergelyking met die vorige boekjaar, toe dit plus-minus 50,2% was. Dit is egter verblydend om hierdie toename in die departement se begroting waar te neem.
Die doel van hierdie program 3 is juis om beleide te ontwikkel vir geteikende programme vir billike toegang tot die landbousektor vir opkomende boere. Dit maak voorsiening vir risiko- en rampbestuur. Verder maak dit ook voorsiening vir landbou-onderwys- en opleiding, landbouvoorligting en raadgewende dienste, wetenskaplike navorsing en tegnologiese ontwikkeling. (Translation of Afrikaans paragraphs follows.)
[With reference to the above-mentioned policies of the ANC government, it is evident that agriculture plays a very important part. Consequently, in my debate, I shall concentrate more on Programme 3, Agricultural Support Services.
Currently, the major problem with land reform is the poor support that new, small and cash-strapped farmers receive when they are settled on new land. Therefore, it is important that a thorough investigation be ordered to establish why certain farmers, who have been settled on land by the government, are unsuccessful. What are the problems that they are experiencing? The principle of 'use it or lose it' can then indeed be applied later after these emerging farmers have in fact been assisted and still cannot farm successfully. Then we have no problem with it. A thorough investigation would be of vital importance.
The Agricultural Support Services take up the biggest part of the department's total budget, namely R1 696,2 million. That is 60,73% of the department's total budget. It has increased by 9,08% in comparison with the previous financial year which was approximately 50,2%. It is, however, heartening to observe this increase in the department's budget.
The purpose of Programme 3 is precisely to develop policies for targeted programmes for equitable access to the agricultural sector for emerging farmers. It makes provision for risk and disaster management. Furthermore, it also makes provision for agricultural education and training, agricultural guidance and advisory services, scientific research and technological development.]
The allocation to Casp is expected to rise from R538 million in 2008 to about R979,3 million in 2011-12 at an average annual growth rate of 22,14%. There will be increased transfers for assistance to emerging black farmers and communities. This is in line with the ANC government's priorities to concentrate more on the postsettlement of beneficiaries and emerging farmers in terms of its strategy on rural development, but the budget allocation to Casp does not correspond with the budget increases for land reform, and that means more support initiatives for them.
Micro Agricultural Finance Initiative of SA, Mafisa, het in die boekjaar 2007-08 R248 miljoen gekry, maar in die boekjaar, 2008-09 het hulle slegs R22,1 miljoen gekry. Daarom het ons probleme ondervind. In my kiesafdeling is daar opkomende boere wat ses maande gelede aansoek gedoen het om die Mafisa-fondse, maar die Landbank het net ges hulle het nie geld nie. Dis die rede waarom daar in die vorige boekjaar so min geld toegeken is vir hierdie projek. Ons het die goeie nuus gekry dat dit nou gaan verbeter.
Ons sal ook egter moet kyk na die rentekoerse wat gehef word. Die Mafisa is 'n langtermynlening wat mens kan aangaan. Die rentekoerse is 'n bietjie beter, maar nog steeds te hoog. Ek dink dit kan verder gesubsideer word om die opkomende boere te help. Die Minister van Finansies het egter ook belowe dat die regering voorstelle deur die bestuur van die Landbank sal oorweeg om bietjie hul balanstaat te versterk. Huidiglik kry hulle ook maar baie swaar. (Translation of Afrikaans paragraphs follows.)
[Micro Agricultural Finance Initiative of SA, Mafisa, received R248 million in the 2007-08 financial year, but in the financial year 2008-09, they only received R22,1 million. That is why we experienced problems. In my constituency there are emerging farmers who applied for Mafisa funds six months ago, but the Landbank just said that they don't have any money. This is the reason such a small amount of money had been allocated to this project in the previous financial year. We have received the good news that it is now going to improve.
We will, however, also have to look at the interest rate that is levied. The Mafisa is a long-term loan that one can negotiate. The interest rate is slightly better, but still too high. I think it can be further subsidised to assist the emerging farmers. However, the Minister of Finance has also promised that the government will consider proposals by the management of the Landbank to strengthen their balance sheet somewhat. Currently they are also having a rather tough time.]
Over the MTEF period, the department plans to recruit more or less 5 000 new extension officers. They will provide much-needed agricultural advice and production assistance to some 500 000 farmers - a half a million farmers - over the three-year period.
Die opleiding van ons jeug om in 'n landbourigting te studeer kan ook verder aangemoedig word. Tans bied te min sekondre skole landbouvakke aan. Studiebeurse in landbou kan meer voorsien word aan leerlinge en studente om hulle aan te moedig om in 'n landbourigting te studeer. Ons moet die jeug kweek om toekomstige landbouers te kan word. (Translation of Afrikaans paragraph follows.)
[The education of our youth to study in the field of agriculture can also be further encouraged. At present, too few secondary schools offer agricultural subjects. More scholarships in agriculture can be provided to scholars and students to encourage them to study in the field of agriculture. We should nurture our youth to become future agriculturists.]