/ 27 July 2005

Land reform must follow the law, summit told

Land reform in South Africa needs to be managed in a statutory framework that is just and fair to all, AgriSA said on Wednesday.

”Acceptance of the rule of law is paramount for transparency, fairness and an outcome that will be in the best long-term interest of this country,” AgriSA executive director Hans van der Merwe told the land summit in Johannesburg.

Some pressure groups have threatened land grabs such as those in Zimbabwe if land reform is not speeded up, while others have called on the government to expropriate land.

Van der Merwe said because land reform is a national interest, its cost should be borne by the Treasury.

It should not be required of present landowners to contribute differently to this cost than other taxpayers.

”A skewed distribution of land-reform cost can easily result in efficient farmers being bought out at a price that will not allow them to invest elsewhere in equal or similar economic opportunities,” Van der Merwe said.

He said it is reasonable for land owners to expect a market-related price for land that they have to part with, and this is best determined by the willing-buyer-willing-seller concept.

It is up to the government to decide how much land should be redistributed, but this has to be underpinned by adequate financial support from the government.

He said the summit should note that substantial progress has been made regarding land reform and black farmer development.

Where there is a lack of progress, it is a problem of delivery and not inefficient policy and laws.

Van der Merwe said his organisation is currently seeking wider support and cooperation for an initiative that will promote and support black-farmer development programmes.

”It is time to trust each other and to cooperate in good faith to achieve what circumstances require from us.”

He said there seems to be a perception that commercial farmers have excessive resources, when according to the Agricultural Statistical Survey of 2002, 51% of these farmers’ turnover was below R300 000. This made them exempt of value-added-tax registration due to their smallness.

He spoke against imposing a land tax, saying it would neutralise the potential benefit of efforts by the government to promote conditions for investment and growth.

Van der Merwe said he hopes the summit will contribute towards a growing consensus on the implementation of land and agrarian reform, instead of deepening differences.

In his opening remarks, Willie Lewies, the vice-president of the Transvaal Agricultural Union, said: ”I’m amused at the amount of clichés that I had to listen to today that are not based on facts.”

At least 15 000 white farmers would be affected if between 20 and 26 million ha of agricultural land was redistributed.

”Our view is that at least black farmers should take up this land, and not big communities who just want to sit there and not farm. This is a political view.”

He complained that current black farmers do not have title deeds, which results in the loss of production.

When Lewies said, ”You are skating on thin ice when you talk about who was here first or who was here last,” delegates burst out laughing.

”I never thought when I came here my speech would be popular,” he said in reaction to the laughter and jeering. — Sapa