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| 2008/09 Budget Vote address by MEC D Mabuza Department of Agriculture and Land Administration, Mpumalanga Provincial Government 29 May 2008 'The time to end poverty has arrived, although hard work lies ahead.' These are the words of Jeffrey Sachs cited from his book titled' The End of Poverty: How we can make it happen in our lifetime. Madam Speaker Indeed, the time to end extreme poverty has arrived, difficult as it maybe. The recent groundswell of protests across the globe over food prices and shortages, escalating petrol prices and the electricity crisis in the country are serious signs of warning that if something drastic is not done soon, global social breakdown and environmental collapse is inevitable. Compounding this situation is the recent barbaric attacks on foreigners that are flaring up in different parts of our beloved country under the guise of xenophobia. Madam Speaker, let me add my voice to the millions of voices in and around the world who are calling on the law enforcement agencies to ensure that the perpetrators of these heinous criminal acts of violence and intimidation meet the full might of the law. May I remind this House that the formation of the African National Congress (ANC) was inspired by heroes and heroines across the length and breadth of the continent? The attack on foreign nationals can never be justified and is diametrically opposed to our endeavours to create a united and prosperous Africa. These shameful acts of marauding gangs have no place in our country because all of us as the sons and daughters of this continent share the umbilical cord of mother Africa. There was a challenge of the national question, which was similar to this xenophobic attack of foreign nationals. Colonizers exploited the gap to their advantage hence many of our nations were defeated and their land and livestock were annexed, primarily because there was no sense of solidarity against the enemy. Therefore, the formation of the ANC, served as an intervention strategy to, among others, further enhance unity and peace amongst African people. An article in the City Press dated 20 April 2008, titled 'The Fight against Hunger' also echoed the same sentiments. It argues that: Earth is on the brink of a humanitarian disaster as nations face the prospects of feeding their hungry while food prices spiral. The article further cites a recent report of the United Nations Education and Scientific Agency, (UNESCO), wherein it warns of more social and political upheaval that could be triggered by rising food prices. It also warns that continuing current trends in production and distribution will exhaust our resources and put the future of our children in jeopardy. The 2008 World Development Report of World Bank on 'Agriculture for Development' is reminding us that three of every four poor people in developing countries live in rural areas. Two comma one (2,1) billion is living on less than $2 a day and 880 million on less than $1 a day. And most of them depend on agriculture for their livelihoods. The Report goes on to say that African women bend under the sun, weeding sorghum in an arid field with hoe and a child strapped on her back – a vivid image of rural poverty. For her large family and millions like her, the meagre bounty of subsistence farming is the only chance to survive. Closer home, between 2005 and 2006, as a result of the increases in fuel prices, food prices, interest rate, we saw the Gross Geographical Product for agriculture in Mpumalanga declining by 9,4 percent, that is, from R2,9 billion to R2,6 billion. Farming debt also showing 13% increase, jumping from R2,3 billion to R2,6 billion. Farming requisites have increased by 5% during the same period and this affects negatively on the total income of farmers. As a consequence, this will lead to job losses and also further increase in farm debt. Madam Speaker, in the light of this picture just sketched above, one cannot agree more with Jeffrey Sachs that: 'The time to end poverty has arrived, although hard work lies ahead.' Many commentators, policy makers and economic analysts seem to agree that in the 21st century, agriculture continues to be the fundamental instrument for sustainable development and poverty reduction. It is still a sector with a strong option for spurring growth, overcoming poverty, and enhancing food security. In essence, promoting agriculture is imperative to meet the Millennium Development Goal of halving poverty and hunger by 2015, and continuing to reduce poverty and hunger for several decades thereafter. As a country and the world as a whole, we have indeed committed to halving poverty by 2015, although as South Africa, has decided to bring forward the timeframe to 2014 to demonstrate our seriousness about eradicating absolute poverty within our shores and create a better life for all. Eleven months from today, the country would have reached fifteen years of its young and deepening democracy. Throughout those years, we, as government and the people of this country, consistently showed our unwavering commitment towards our broad strategic goals of: Growing the economy and food security Such commitment has been, and still is, also evident in the manner public funds are spent. We continuously ensured that our meagre public funds remained geared towards addressing these broad goals. Even today, the budget that we would be tabling before this august house, remain directed towards these broad goals because their achievement would mean uplifting the standard of living of the poor, subsequently creating a better life for all our people. Madam Speaker, we are quite aware that for us to tackle effectively the challenges of poverty, unemployment and inequalities still as pervasive in the Province and the country as a whole, we need to place our economy on a sustainable growth trajectory. And as a department, we believe that agriculture is better position to spur such growth in the province. This is also the view shared by 2008 World Development Report of the World Bank wherein it is argued that agriculture is for development because it contributes as an economic activity, as a livelihood, and as a provider of environmental services. In essence, agriculture is a source of growth, a provider of investment opportunities for the private sector and a prime driver of agriculture-related industries and the rural non-farm economy. Obviously, agriculture is the sector that could respond better to the call of the world, country as well as the Province that: 'The time to end poverty has arrived, although hard work lies ahead.' Many analysts argue that, for agriculture to be the main source of growth that leads to the reduction of poverty and the improvement of the environment will require, among other things, improving the asset position of the poor, and making smallholder farming more competitive and sustainable. It is argued that household assets are major determinants of the ability to participate in agricultural markets, secure livelihoods in subsistence farming, compete as entrepreneurs in the rural non-farm economy, and find employment in skilled occupations. As most of us are aware, the core assets involve land, water and human capital. Madam Speaker, 'The Focused Approach' that the department adopted two years ago, talks to these key issues. As pointed out in the previous year, it is an approach for increasing the provincial agricultural output, enhancing food security, and consequently stimulating sustainable economic growth and development. Indeed, it is an approach aimed at increasing the participation of emerging farmers in the agricultural sector and enhancing the contribution of the commercial farmers. As we indicated in the past, it is an approach that is driven through 'Anchor Projects'. To date, the department is providing a range of support services to farmers participating in the five different Anchor Projects that we are currently pursuing in the area of the macadamia, sugarcane, apples, bio-fuels and livestock industries. A total of R84 million, made up of R41 million of Comprehensive Agricultural Support Programme (CASP) conditional grant, and R43 million of a provincial allocation, has already been injected into four main Anchor Projects totalling to 17 individual projects in the area of Macadamia and Apple Orchards establishment, Poultry and Horticulture development. The investment cover on-and-off farm infrastructure, training and other related activities and has benefited 2672 people and created a substantial number of permanent and temporary jobs. In the new financial year, we are planning to spend a total of R83 million in this area of work. It is important to note that the Anchor Projects also seek to advance the whole objectives of Broad Based Black Economic Empowerment. Coupled to this is also the promotion of Agro-Processing initiatives especially for rural industrialisation. Livestock development Madam Speaker, livestock farming is also crucial for the provincial economy. The Department continues to support communities, and emerging and commercial farmers involved in livestock production and export. From 2006 to 2007, we saw livestock exports increasing from 2 345 to 43 447 while poultry exports remaining similar in both years. Mpumalanga also exported animal feed, food products trophies and curios to eleven countries in the South African Development Community (SADC) region and 39 other foreign countries valued at approximately R110 million. It is also worth pointing out that one of the contributing factors to the growth of our livestock exports is the clean bill of health of our animals, both big and small. We continuously monitor and manage the common animal diseases that are prevalent in the province and the country as a whole, namely, avian influenza, classical swine fever, and foot and mouth diseases. One is pleased to announce that Mpumalanga remains free of avian influenza and classical swine fever and this enabled accredited farmers in the Province to export within the SADC region. The department also continues to ensure that vaccination of randomly selected animals is administered, dip tanks and livestock handling facilities are maintained, and quarantine inspections are held. Together with SAPS, the Department of Heal and Social Development, including the municipalities will continue to address the illegal slaughtering and sale of meat, particularly at pension points and stock theft. Mpumalanga Agricultural Development Corporation (MADC) Madam Speaker, we are quite aware that to make smallholder farming more productive and sustainable, access to finance and the reduction of exposure to uninsured risk remain crucial for agri-business development. The Mpumalanga Agricultural Development Corporation continues to provide loans to small-scale farmers aspiring not only to climb the development ladder but also to contribute to economic growth. In the previous year, we transferred R39 million to make small-scale farmers improve productivity, profitability and sustainability. This year, we have allocated an amount of R42,7 million to assist emerging farmers. Poverty alleviation and job creation Madam Speaker, as pointed out earlier, agriculture is not only a source of economic growth but also a major source of livelihood for the rural poor. It provides jobs for smallholders and landless workers. Masibuyele Emasimini To this end, the Department continues to apply the framework of Masibuyele Emasimini, a guide aimed at mobilising the masses of this province with access to land but not utilizing it for livelihood, basically keeping themselves from placing their feet on the first rung of the ladder of development. As we indicated in the past years, as government and the Department we refused to view the majority of our people who are still caught up in a poverty trap, unable to escape from extreme material deprivation as a hopeless basket case, but as human capital worthy of attention, care and development assistance. Our people know about the development ladder but they are not able to get a first foothold on the ladder and it goes without saying that they would not even begin the climb out of poverty. In the financial year just ended, we invested an amount of R30 million to assist identified beneficiaries in the three districts. The villages that benefited with mechanisation and production inputs in the previous financial year stand as follows: * Ehlanzeni received a total of 36 tractors. Nineteen were distributed to seven Mlambo villages, six to Malekutu area, five to New Forest and six to Dingleydale. In the current financial year we will be distributing a total of 40 tractors in five different areas, namely, Mlambo village, Mgobodzi, Makoko, Shabalala, Hoxani and Mathibela. * With regard to Gert Sibande eleven tractors were distributed in 2007/08 financial year, six for Dundonald and five provided to Driefontein. During the course of this year, a total of 20 tractors will be distributed to Elukwatini, Driefontein and Dundonald. Madam Speaker, all in all, a total number of 56 tractors was distributed and 11 933 hectares were ploughed and thus benefiting 5 919 subsistence farmers and household producers. In the context of Masibuyele Emasimini framework, we have, in collaboration with the Department of Agriculture at national level, also provided additional mechanization in the form of 43 power hoes for backyard gardens and people with less than two hectares. This is in addition to the ongoing own - food production support driven through what is commonly known as Food Gardens Starter Packs. In pursuance of the Millennium Development Goals (MDGs) of reducing extreme poverty and hunger by 2015 it is important to note the importance of measuring the impact made by various food security related projects in the province. The Department is therefore focusing on the establishment of food insecurity base-line information and set up the Food Insecurity and Vulnerability Information Management System (FIVIMS). The system will assist the Provincial Government in designing, planning, implement, monitor and report from time to time one hunger and food insecurity status in the province. Expanded Public Works Programme With regard to job creation for the poor, the department continues to advance the goals and objectives of the Expanded Public Works programme as outlined in the 2004 Manifesto of the ruling party. To live up to letter and spirit of this programme, the Department continues to use the Land Care programmes as a mechanism to create jobs, although the jobs are temporary by nature, however the skills acquired during the implementation of the projects, provide individuals with the necessary foundation to build on for further self-development. In the previous year, we allocated R21,2 million for job creation and skills development. The department managed to create 3 328 temporary jobs, that is, 492 males, 1 457 women, 1362 youth and 17 for people with disabilities. Land reform and tenure upgrading Madam Speaker, as highlighted earlier on that access to land is extremely crucial for agricultural and rural development. It is in this context that we, as government, embarked on land reform right in the early years of our new democracy. We understood that it is only through land reform that we will be able to promote smallholders' entry into the market, reduce inequalities in land distribution, increase efficiency and make it possible for the women to play a significant role in agriculture. As a way of refreshing our memories, the Land Reform programme covers three broad areas of work, namely, restitution, redistribution and tenure upgrading for labour tenants and people living in the former homelands. Relating to the redistribution leg of Land Reform, the 30% of commercial agriculture to be settled in the province is 1,5 million hectares, of which, to date 250 000 hectares have been transferred to aspiring and emerging farmers. With the latest adopted acquisition approach, that is, the Proactive Land Acquisition Scheme (PLAS), the Department of Land Affairs has managed to deliver 50 000 hectares in the last financial year. However, the challenge that is confronting them now is to fast track the redistribution of the remaining 600 thousand plus hectares in order to reach the 30% target. It is on the basis of the "The Snail Pace of Delivery on Land Reform" that the Minister for Agriculture and Land Affairs took upon herself, after her inauguration, that she aggressively mobilized the two sister departments and announced the Gijima Programme, meaning, Speed Up Land Reform. This programme led to birth of the Land and Agrarian Reform Project to speed up delivery of land and couple to it is adequate and timely post settlement support. Tenure upgrading Madam Speaker, we also use tenure upgrading to deal with the issue of secured property ownership. The government has set a target of settling all Labour Tenants fore tenure security by the end of this financial year. In this province there is a target of settling a total of 9 000 Labour Tenants. Using the PLAS tool, it is hoped that the remaining 1 600 Labour Tenants would be settled, of which, the majority are in Gert Sibande. It is our believe that once people enjoy security of tenure of their properties, more windows of opportunities will open up for them, with appropriate post settlement support they can also begin to play an active role in the economy and chart out their own development and growth. Sustainable Resource Management Madam Speaker, the 2008 World Development Report of the World Bank argues that although agriculture is a major player in underground water depletion, agrochemical pollution, soil exhaustion and global climate change, however it is also a major contributor in sequestering carbon, managing watersheds, and preserving biodiversity. Therefore, to use agriculture for development, it will be imperative to manage the connections among agriculture, natural resource conservation, and the environment. Obviously, people exploit the soil, water and vegetation resources for their own survival, economic activities and development in the province. We continue to see the fierce competition for these resources among agriculture, mining, industries, ecotourism, private game farming and residential settlement. As already pointed out, these resources must be utilised in a sustainable manner to ensure that future generations are also able to use them to their own benefit. However, while we derive some benefits from these resources, we also generate new challenges for the environment. The greenhouse gas emissions have a great impact on climate change. A study published by Science suggest that, due to climate change, Southern Africa could lose more than 30% of its main crop, maize, by 2030. An October 2006 report by Stern argues that when looking at the proportion of Carbon-dioxide emission worldwide, the largest contributor is power generation at 24%, mostly from coal and gas fired power stations. Next is land use at 18%, then a three-way tie with agriculture, industry and transport at 14%. Waste is making up three percent. Looking at those sources of greenhouse emission identified in the study, there is no doubt that we are also a culprit as a Province. In the mid of last year, the Minister of Environment Affairs and Tourism has declared the area from Ekurhuleni, the highveld part of the province, down to Volksrus as a highly polluted area and also a serious health risk to the communities living in those areas. This area covers eight municipalities in total. As a Department, we have already initiated processes aimed at dealing with this challenge. We will be spending R14 million over the next five-years in setting up air quality monitoring stations around the affected areas, basically to monitor whether or not industries are keeping within the required emission standards as set. We also intend to develop a website through which information will be disseminated to the public regularly about the status of the ambient air quality in the affected areas. With regard to waste management, there is still a huge infrastructural backlog and other human-induced challenges. Most municipalities are still operating illegal landfill sites, or operate in transgression of permit requirements as a result of capacity and resource constraints. More than 40% of Mpumalanga citizens do not receive adequate waste collection or waste management services. In addition, there is an unacceptable littering syndrome in the Province which depict a general state of 'uncleanliness' in our communities. To this end, the drafting of the projects for the development of a Municipal Integrated Pollution Control Model and the Provincial Hazardous Waste Management Plan have been completed and will be ready for implementation soon. The Municipal Integrated Pollution Control Model would be piloted in three municipalities, namely, Mbombela, Emalahleni and Govan Mbeki. The results will be used to inform the roll-out process to all municipalities in the near future. Madam Speaker, the recent decision of Cabinet in making the issue of environment as part of the 'Big Five Flagship Projects' of the province, signifies how important environment is with regard to economic growth and development, including climate change. In the previous year, we initiated a project where we planned to plant hundred thousand trees in the province – a project that had multiple purposes. This project is intended to contribute towards, among other this, the mitigation of global warming, enhancement of food security and tourism promotion in the province. One is pleased to announce that we have managed to surpass the hundred thousand target set for 2007/08 financial year. One wishes to also join the Premier in his state of the Province address in congratulating the officials involved and all the other stakeholders who participated in this project for a job well done. One hopes that you will continue to keep the momentum in greening Mpumalanga. In the 2007/08 financial year, we spent an amount of R17,4 million to keep Mpumalanga clean and green. For the current financial year, we have set aside an amount of R30 million to ensure that, in a small way, the Department continues to contribute to the objectives already alluded to earlier. Madam Speaker, to ensure that there is effective management and good governance of the environment in the development agenda of the province; one cannot over-emphasised the importance of environmental awareness and education. We continue to use various campaigns to reach out to as many people as we could, both locally and globally. To cite but few examples: * In July 2007, my predecessor, MEC Dinah Pule, led a delegation of 26 officials from the Department to a World Environmental Education Conference held in Durban. We presented three papers in the Conference on the wonderful work that we are doing with regard to sustainable environmental management and development. As a result of this event 2008/09 priorities Madam Speaker, we have set ourselves the following priorities for 2008/09; investment in irrigation infrastructure development, LandCare, Greening Mpumalanga, Market access and agro-processing, support to resituated farms, Masibuyele Emasimini and skills development. With regard to irrigation infrastructure development we have developed a comprehensive plan to assist farmers in relation to the challenge of water for agricultural development and emphasis will be on water saving systems. In order to promote sustainable natural resource development we will continue implementing LandCare projects in rural areas. We have set aside R21 million and indeed, this will provide job opportunities for the poor. The province has begun implementing the five flagship projects and the Department is contributing in Heritage, Greening Mpumalanga and Tourism, by leading the Greening pillar of this project. The Premier announced that 150 000 trees will be planted before the end of the financial year and we are going to work with our stakeholders and role players to make this call a reality. Four air quality service stations will be established as part of greening the province at strategic points such as the Highveld Region which is a significant contributor to air pollution. The Department is committed to promoting the emerging farmers from being farm gate takers by supporting them with agro-processing facilities to add value to the farm produce. Working relationships with the developed commercial sector will be strengthened to enhance access to established markets by emerging farmers thereby improving farm incomes. One of the priority programmes that will be implemented as part of the Apex Priority Projects announced by the President during the State of the Nation Address calling for "Business Unusual" in the area of land and agrarian reform is the Land and Agrarian Reform Project (LARP). This call was further reiterated by the Premier, Mr Thabang Makwetla, in his State of the Province Address where he highlighted the need to provide agricultural support to resituated farms. The department will continue to collaborate closely with the Department of Land Affairs, Provincial Land Claims Commissioner together with the respective Local and District Municipalities in setting up service delivery mechanisms for land acquisition and post settlement support. Plans are afoot in the Department to spend R35 million to strengthen Masibuyel' Emasimini in the new financial year 2008/09. Masibuyel' Emasimini will provide 83 tractors, implements and production inputs to additional 15 villages in the province. A total of 5 916-subsistence farmers and food insecure households are expected to benefit from this programme. The total hectares of land to be ploughed and planted are projected to be a combined total of 15 500 hectares. This includes areas covered by tractors delivered in the previous cycle. The issue on skills development and training issues for employees and the farmers remain a priority in the department. As such the department continues to provide bursaries to students to study in the fields of veterinary science, agricultural sciences, agricultural economics, agricultural engineering, environmental studies, and other critical skills. During this current financial year an amount of R9,9 million has been budgeted for the implementation of the Extension and Advisory Recovery Plan. This plan seeks to upgrade the skills and working tools of the extension workers for better service delivery. Madam speaker, the department acknowledges the value of collectiveness in any venture. The impact of our planned programmes can only be optimized if our farmers are organised along commodity lines and that some legal business entities are established to serve as conduits to access services The department will therefore continue mobilizing our farmers towards the formation of commodity associations and more attention will be paid to the emerging sector and our land reform clients. The Department will work with other stakeholder to put measures in place to establish, develop and ensure sustainable co-operatives that able to participate meaningfully in agribusiness development. The Department will further strengthen capacity at local level to enhance easier access by the entire farming communities. Budget allocation to programmes Madam Speaker, the R741, 576 Budget allocated to the department for the current financial year is distributed as follows within the department: Programme: Budget ('000) Conclusion In conclusion Madam Speaker, as a Department we stand for a noble vision of building a united and prosperous agricultural sector, a well-conserved biosphere and ecosystems, and a healthy and sustainable environment. May I therefore take this opportunity to thank the Honourable Premier for his support and guidance. One would also like to thank my colleagues in the Executive Committee and Members of the Portfolio Committee led by the chairperson Honourable Member PE Pasha for their continuous advice and positive contributions to my area of responsibility. My thanks also go to all farmers and various stakeholders in the agricultural sector for dedicating their time and resources, trying very hard to make agriculture one of the successful sectors in the province. Let me also take this opportunity to thank the HOD, Ms Nelisiwe Sithole and her entire staff, the Acting Chief Financial Officer of MADC, Mr Velelo and his staff, The Chief Director for Land Affairs Provincial Office Ms Leona Archery and her staff not forgetting the Acting Land Claims Commissioner Mr Mhangwani and his staff. Your dedication and commitment is not going unnoticed. Keep up the good work. Special thanks will go to my family for their unqualified and continuous support. To the agricultural family, when we came together in the wake of democracy it was a beginning, and keeping together during our journey until thus far is progress, and working together to grow the economy of this province and reduce poverty and unemployment, that will definitely be success. Let us all not forget that: I thank you Issued by: Department of Agriculture and Land Administration, Mpumalanga Provincial Government |