APPROPRIATION BILL

(Second Reading Debate)

 

Vote 11 – Agriculture R155 350 000.

 

The SPEAKER:  We proceed to Motions and Motion 1 reads as follows:

That the Second Reading Debate of the Appropriation Bill be continued.

 

The hon MEC, Mr Oelrich.

 

Mr H H v M OELRICH (MEC):  Hon Speaker, Madam Premier of the Free State Province, Me Winkie Direko, Members of the Executive Council, Members of the National Parliament, Members of the Provincial Legislature, Members of the NCOP, mayors and councilors, Marena le Dikgosi [Traditional Leaders], distinguished guests, fellow Free Staters.

 

May I just start by having a correction made to a written document before you on page 2?  Towards the end of that page, you will see that there is a word that says “privatisation” that is not correct, it was supposed to read “A Lease Agreement”.  So, please keep that in mind.

 

May I then also thank the Directors who made the peaches available?  Through you, hon Speaker, may I just tell the hon Member, Mr Oosthuizen, that these peaches are not meant to be thrown at me?  They were grown by emerging farmers in the Senekal district, on a farm known for its quality peaches, called Boiteko.  We appreciate their donation to us.

 

Agriculture is a very 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 as a Department is to promote and facilitate the development of new business orientated entrepreneurs in the agricultural sector - while maintaining the support of established entrepreneurs.  In the Free State, we recognise our Province as an Agricultural Province.  Agriculture contributes, on average, 9% to the Gross Geographical Product (GGP) of the Free State, which - after the mining sector - makes it the third biggest contributor to the economy of the Province.

As the gold and diamond based economy declines, we must look for increased economic development in the agricultural sector as an alternative.  Farmers in the Free State produce about 36% of maize, 50% of sorghum and 42% of wheat grown in the country.  This makes Free State farmers the largest producers of grain crops in the Republic of South Africa.  Free State is also the second largest producer of sunflower seeds, groundnuts and dry beans.

 

Only 11% of the primary products produced in the Free State are processed here and the majority of the products leave the province in their primary form.  The challenge facing the Free State is how best to exploit opportunities that exist with regard to value adding.

 

Access to markets is vital in the agricultural sector.  We therefore render agricultural economic services and support the development of network infrastructures that open communication networks with various market places.  To accomplish the goals prioritised in the Free State Development Plan and those outlined in the recently adopted National Agriculture Sector Strategy, the Department has realigned its Strategic Plan.

 

For us to achieve maximum results with regard to these economic initiatives, we will require not only the commitment and energetic involvement of our Department, but the building of a strong partnership with all key players. One of our responsibilities will be the establishment of a consultative forum of all relevant stakeholders on agricultural and agricultural related matters.

 

Investment in the economic infrastructure has been prioritised to support beneficiaries of land reform and to establish sustainable food and income-generating activities.  Our Department has negotiated with the European Commission, developed strategies of fast tracking the disbursement of funds from the Community Projects Fund Support Programme (CPFSP).  This has resulted in the reorganisation of the whole programme.

 

The European Commission has indicated its willingness to fund eight additional posts in that Division.  We have requested the programme to be extended until March 2006, as well as for an increase in the individual grant.  In the past, this programme was a household grant, but it is now to be an individual grant so as to be in line with the Land Affairs policy for land redistribution.

 

We will establish call centres for our clients to register their comments about services that we provide.  This action should improve the inter-action between the Department and our clients and thereby achieve one of the principles of Batho Pele (People First).

 

In its endeavour to create jobs and defeat underdevelopment, the Department has approved 42 business plans of community projects during the 2001/2002 financial year, to the total grant expenditure of over R4 million. This fund aims to benefit all sectors of our communities including youth, women and the disabled.

 

During the next financial year many more projects will be approved and implemented and we anticipate spending R70 million on farmer settlement support and infrastructure development programmes.

 

Agricultural training and research are tools that must be used to fight poverty in our Province, especially in poverty stricken rural communities.  The long-term future of a home for the Glen College of Agriculture and the Research Unit has not yet been resolved, but this does not impact on their functioning on the short and medium terms.  These issues are being discussed at national level and we will remain functional until a final decision is taken.

 

Farm systems and applied research are also undertaken at Glen Research Farm primarily in the fields of crop and animal production and pasture management.  A soil and water laboratory complements the research activities.  All these research programmes are performed to optimise plant and livestock health and production.

 

Glen College of Agriculture plays a vital role in the development of potential farmers and agriculturists.  The pass rate has dramatically improved in the past calendar year.  The challenges facing the college include inter alia, constituting a multi-racial institution, the establishment of outreach higher learning programmes and the establishment of strong partnerships and co-ordination with other institutions and the private sector.

 

We will also continue with the Study Group Programme in the Province.  This is a programme that enables commercial farmers to meet and exchange ideas.  This year we will establish study groups for emerging farmers.

 

In order to encourage young people to pursue agriculture as a career and to help develop future potential farmers, the Department will continue to be engaged in a Youth Career Guidance Programme in the agricultural field at various schools in the Province.

 

The Department will continue to encourage and empower women in agriculture.  Programmes such as the Female Farmer of the Year Competition will continue.

 

Our approach in assisting farmers in the field is to have a shift of emphasis so that the extension and development staff of our Department can act as facilitators in order to give the best assistance to our entire farmer clients.  They will be able to assist farmers in making contact with the Technical Services staff of our Department, with other departments who may be involved in the same area, as well as with the private sector that can offer a service to farmers.

 

Extension and development staff will focus on their core function of facilitating and providing after-care to our clients.

 

The role of Veterinary Services is critical to our clients.  The Department renders services such as veterinary animal health, veterinary public health and diagnostic services to farmers and the public in general.

 

Towards the end of the past calendar year, the Department conducted and completed - within the national time frame - a survey on Foot and Mouth disease.  The main objective of this survey was to prove to the international community that the Republic of South Africa is now foot and mouth disease free.

 

Provision of training and education on the Meat Safety Act is one of the critical aspects of veterinary services.  The Free State Province has the most red meat abattoirs and the second most poultry abattoirs of all provinces in the country.  Our veterinary officials, together with other private meat inspectors, inspect all these abattoirs on a regular basis to ensure the safety of meat and to identify possible food borne diseases, which may affect human beings.

 

Laboratory and diagnostic services, which are vital to livestock farmers, are offered in the Department’s laboratories in Bloemfontein and in Kroonstad.  These laboratories perform 300, 000 diagnostic tests per year.

 

The Department, in partnership with the National Department of Agriculture, will erect animal health centres throughout the underdeveloped areas of the Province to give livestock owners access to veterinary services such as dipping, treating and sampling.  We will also conduct an animal census this year.

 

Cold caused the deaths of thousands of animals in the eastern parts of the Province during last Winter.  Departmental officials assisted farmers with the completion of application forms for disaster relief.  This is usually a very lengthy process, but I am glad to confirm that support for the flood victims of 2000 has been announced.

 

Our Department in partnership with the Provincial Office of Land Affairs will ensure that land reform is fast-tracked in the Province.  To ensure that we achieve this aim, we have set ourselves bold but realistic goals to enable us to gauge the progress we will be making.  The Provincial Grants Committee, which is a body that approves grants for land reform projects, that used to sit once a month, now sits weekly.  We have successfully implemented the national initiative encouraging the involvement of the Land Bank in land redistribution.

 

The Provincial Grants Committee managed to approve 97 projects of over 25 000 hectares of land to a total value of over R20 million during the 2001/2002 financial year.  This created direct jobs opportunities to 574 people in our Province.  Those are figures that are already updated because last week new figures came in and every week new figures are added.

 

In collaboration with the Provincial Office of Land Affairs, we will spend R23 million on land redistribution in the next financial year.  This action will create jobs and allow the beneficiaries themselves to create new economic opportunities.

 

Our vision and actions with regard to land reform are based on the Manifesto of the people of South Africa, the Freedom Charter.  This charter visualises a standard of living for our people that will liberate them from poverty and starvation.  Accordingly, it says:

 

The land shall be shared among those who work it.

 

As part of our implementation action and the strategy to address issues of the landless, food security and creation of jobs, the Department will effectively adapt and implement the recently adopted National Agriculture Sector Strategy in the province.  A summary of the strategy is at the back of your folders.

 

The Department will work towards the creation of an economic environment that will encourage farmers to create jobs without which it will be impossible to defeat the scourge of poverty and unemployment.  We will encourage partnerships and mentorships between emerging and established farmers in order to realise the objective of a better life for all.  This will assist emerging farmers with issues such as marketing and it will also extend their contact and interaction with the rest of the country and the continent as a whole, enabling them to participate in the processes of NEPAD (the New Partnership for Africa’s Development).

 

Sustainable agricultural development requires that we maintain our natural resources to ensure that we have land for future generations.  Critical in this regard is the matter of natural resource management.  We will, through funds from the National Department of Agriculture, financially support farmers through the Land Care Programme.

 

Training on natural resource management will also be given to beneficiaries of land reform. Additional structures such as irrigation systems, fencing, water-troughs, subsurface drainage systems, waterways and contours will be constructed in the new financial year.  Various projects were funded by over R1 million through the Land Care Programme during this passing financial year.  During the next financial year of 2002/2003, R1.4 million will be spent on Land Care Projects in various places in the Province.

 

The budget for 2002/2003 financial year is R155 350 million.

 

The macro organisational structure of the Department is reviewed annually to align it with the political and social ambit in which it operates and to better address the development needs of its clients.  The year 2000/2001 brought about the strengthening of the management echelons of the Department through centralisation to Head Office.

 

The number of districts within which the Department operates were also increased from three to five to conform to the district delineation of activities of the Provincial Government.  The budget for 2002/2003 shows an increase of 23,4% on the nominal appropriation for 2001/2002.

I now present to you the allocated budget for various programmes of the Department for the 2002/2003 financial year.

 

PROGRAMME 1:  MANAGEMENT

 

Entails the planning, organisation, co-ordination, funding and control of functions of the Department.  An amount of R3.421 million will be spent on the overall management of my Office, the Head of the Department’s Office and that of the Legal Support and Labour Relations.  The Department will appoint the Head of the Department at a Deputy Director-General level in the near future.

 

PROGRAMME 2: EXTENSION AND DEVELOPMENT

 

Our core function deals with the provision of integrated multi-disciplinary Extension and Agricultural Development services to the community.  The services are co-ordinated from five district offices strategically placed within each district area.  The overall management of the programme is performed from the Head Office.  An amount of R51.960 million will be spent through this programme.

 

PROGRAMME 3: TECHNICAL SERVICES

 

Renders services such as veterinary services, research, non-formal training, agricultural economic services, agricultural engineering services, farming information and natural resource management.  The programme also deals with the maintenance and development of the Glen farm.  An amount of R28.762 million will be spent through this programme.

 

PROGRAMME 4:  FINANCIAL MANAGEMENT AND MANAGEMENT SUPPORT

 

Is a new programme, which deals with the full implementation of the Public Finance Management Act (PFMA) in the Department.  The programme has sub-programmes such as Strategic Financial Management, Financial Planning and Control, Productivity Development and Resource Utilisation and Project Management Unit Support.  An amount of R9.888 million will be spent through this programme.

 

PROGRAMME 5:  CORPORATE SERVICES

 

Renders Personnel, Human Resource Development, Financial Accounting and Provisioning, Departmental Support Services and Communication and Public Relations Services.  An amount of R32.394 million will be spent in the 2002/2003 financial year.

 

PROGRAMME 6:  AGRICULTURAL TRAINING

 

Formal Agricultural Training was previously part of the Technical Services Directorates and it is now an independent budget programme.  This shift is necessitated by the uncertainty surrounding the future institutional arrangements regarding all Agricultural Colleges in the country.  In the meanwhile, the college’s short- and medium-term functions have to be implemented.  An amount of R8.245 million will be spent on formal training.

 

PROGRAMME 7:  STAFF ADDITIONAL TO THE ESTABLISHMENT

 

This programme deals with all matters associated with staff members additional to the establishment of the Department.  The Department is once again providing fully for the salary and subsistence needs of all staff additional to the establishment, pending the design and implementation of feasible permanent solutions for this issue.

 

Some of these staff members are now performing a security function at Glen and Thaba Nchu and some will be performing a function of maintenance of urban and rural infrastructure in the future.  The Department is in active support of the measures of permanently resolving this issue.  An amount of R20.680 million will be spent through this programme.

 

I would like to take this opportunity to pay tribute to all our farmers, of all colours, for their contribution towards economic growth, eradication of poverty and underdevelopment in our Province.  You are assisting the Government in achieving its overall objective of a nation at work for a better life for all.  I would also like to thank the staff of our Department for their dedication and hard work in serving our clients.

 

For us to achieve our vision of a vibrant and a united agricultural sector in the Free State, I appeal to all members of the farming communities to continue working together towards an amicable resolution of conflict.  This Department appreciates the call made by organised agriculture, Agri-South Africa, upon those South African farmers who are responsible, to stop child labour on their farms.

 

In the same token, we call on all farming communities in our Province to heed the Premier’s call to root out any vestiges of racist conduct and inhumane behaviour that may still exist.  As much as we are aware of the fact that these acts are performed by a few, we must, as a whole, condemn them.  We must continue to build a sector free of racism, sexism and related intolerance.

 

As a sector and as Free Staters, we must advance and respond to the call - Vuk’uzenzele.  Let us focus on enabling the people to be their own liberators and enable them to occupy the driving-seat in the Reconstruction and Development Programme of our Province and the country in general.

 

This being the Letsema year of volunteers, our Department will be engaged, for the purposes of reconstruction and development, in the campaign, under the theme:  Know your Neighbour”.  We hope to encourage farmers to get to know their neighbours as the first step towards unity, safety and co-operation.

 

I implore you all to walk the extra mile and volunteer to do that little bit more towards shaping and improving our agricultural sector.  Please share my vision of an agricultural sector that has become strong through a unity of purpose developed in building a society committed to sustained economic growth and human empowerment.  Having the vote does not necessarily ensure the dignity of a nation.  It is only when liberated citizens can take pride in the fruits of their labour, when they know that they can feed and provide for their families that true freedom is obtained.

 

We need to maintain at least a 6% growth rate to be able to achieve this.  In so doing we will uplift the people of the Free State to true liberation.  Walk with our Department, walk with the Members of this Free State Legislature and our Premier as we all strive towards a better Free State for its entire people.

 

Vuk’uzenzele!  Tsoha o Iketsetse!  Rise and make it happen for yourself!  Africa ke Nako!  [Applause]