1. Presentation to the Joint Budget Committee on 2003 MEDIUM TERM BUDGET POLICY STATEMENT 14 November 2003 SARAH CHOANE – CHIEF FINANCIAL OFFICER Department of Land Affairs

2. CONTENT 1.Departmental Strategic Framework 2.MTBPS overview 3.Contribution of land reform (restitution, redistribution, land tenure, spatial planning) towards -Rural Development and Urban Renewal -Employment and Economic Growth

3. CONTENT (continued) 4.Departmental input into the MTEF in terms of: - MTEF -Recommendations of the MTEC - Adjusted Estimates -2002/03 spending

4. VISION An equitable and sustainable land dispensation that promotes social and economic development

5. MISSION To provide access to land and to extend rights in land, with particular emphasis on the previously disadvantaged communities, within a well planned environment

6. THE MISSION IS UNDERPINNED BY 6 STRATEGIC OBJECTIVES Provision of access to land Provision of rights in land Effective co-ordination of integrated spatial planning and information

7. STRATEGIC OBJECTIVES (continued) STRATEGIC OBJECTIVES (continued) Improvement of stakeholder relations Promotion of intra-departmental excellence Improvement & alignment of systems & processes

8. MTBPS OVERVIEW The Dept supports the MTBPS because it is growth oriented and expansionary, as underpinned by the following key policies: -Employment creation -Strengthening of social security -Growth target of 4% from 2005 onwards

9. CONTRIBUTION TO LAND REFORM The Department concurs that land reform and restitution remain central to poverty alleviation. The Department is appreciative of the augmentation of the Restitution budget over the MTEF period.

10. RESTITUTION & URBAN RENEWAL About 80% of land claims lodged are urban. 85% of the 42 556 claims settled as at 30/09/03 are urban. 6 875 land claims to the value of R600 million were finalised over the last six months where 17 999 households will benefit 265 778 hectares of land (land cost: R285 million and financial compensation: R258 million ).

11. URBAN CLAIMS SETTLED INCLUDE: Kabalange in Uitenhage where the restitution award was used for home improvement, education and livelihood projects for the poor. Alexandra project where each claimant households was paid R50 000. Kliptown in Gauteng, 147 households received R7,8million. Putfontein urban housing project to the value of R212 million. East Bank land claim for about 6 000 claimants in Mdantsane, most have opted for financial compensation.

12. URBAN CLAIMS (continued) Charlestown in KZN, 1 100 claimant households, R27m. Barkley West in the Northern Cape, 322 households, R7.4m Luyolo in Western Cape, 400 households, R9.1million. Mlungisi land claim in Queenstown, 1 290 households

13. RESTITUTION & ISRDP Rural land claims constitute about 20% of claims lodged. Most are community claims involving large number of hectares, households and land parcels e.g. One Bjatladi Zebediela land claim on citrus farm in Limpopo, involves 331 households (1 244 beneficiaries) 5 973 hectares (state land) where the grants were R17.5m. On the ISRDP nodes the following claims are in the process of settlement:

14. RESTITUTION & ISRDP (continued) Makhoba at Alfred NZO, 1 693 hectares, 1 400 households, R20m. North pondoland Sugar - O.R Tambo, 10 000 hectares, 2 000 households, R36m. Mkambati - O.R Tambo, 17 400h, 2 200 households, R12m. Mbolompo Forest claim - O.R Tambo, 10 000h, 3 000 households. Queenstown Commonage, Lukhaji, 1 500 h, 3 600 households Guba land claim, Lady Fre, 10 000 h, 300 households, R3m Ntabethemba (Thornhill) Queenstown, 23 000h, 14 600 households

15. CHALLENGES: RESTITUTION Critical issues for urban claims include: –Co operation of municipalities for land acquisition, Bulk infrastructure, technical assistance (human, capital, funding,other support). –Capacity building for community structures and municipalities.

16. CHALLENGES: LAND REFORM Inadequate resources for Land Redistribution and Land Tenure Reform.

17. CHALLENGES: LAND REFORM (continued) Ministerial Policy directive made in 2000, that 30% of agricultural land should be distributed in 15 years. Progress to date: –We have redistributed 813 101 ha under the LRAD programme over the past two years.

18. CHALLENGES: LAND REFORM (continued) Projected figures to meet the 30% target: –82 million hectares of commercial agricultural land is “White- owned”, 30% of which is 24,7 million hectares –Thus we need to redistribute 1,6 million hectares per annum

19. CHALLENGES: LAND REFORM (continued) The required financial resources : –R34,5 billion over 15 years translating into R2,3 billion per annum, based on a conservative price of R1 400 per hectare

20. CHALLENGES: LAND REFORM (continued) –Initially the slow pace was ascribed to inadequate implementation systems and structures. However, these have been addressed and the major challenge that the Department is now facing is insufficient financial resources.

21. Programme2004/05 (R’000) 2005/06 (R’000) 2006/07 (R’000) 1. Administration171 427182 006192 927 2. Surveys & Map.76 60981 26186 137 3. Cadastral Surveys84 71189 75795 142 4. Restitution939 7971 063 0321 126 814 5. Land Reform477 328523 132554 519 6. Spatial Planning19 17820 15821 367 7. Aux. & Ass. Ser.19 12220 26921 485 TOTAL1 788 1721 979 6152 098 391 MTEF BASELINE ACCORDING TO PROGRAMMES

22. For Land Reform 2004/05 R’m 2005/06 R’m 2006/07 R’m Dept request for additional budget 564633670 MTEC-100250 MTEC RECOMMENDATION

23. Economic Classification2004/05 (R’000) 2005/06 (R’000) 2006/07 (R’000) Personnel361 165382 522405 671 Current Transfers2 2002 3322 451 Current Other310 036323 392341 498 Capital Transfers1 083 2651 237 8041 312 072 Acquisition of Capital Assets31 50633 56536 699 TOTAL1 788 1721 979 6152 098 391 MTEF BASELINE PER ECONOMIC CLASSIFICATION

24. DEPARTMENTAL BUDGET 2004/05 PER PROGRAMMES

25. DEPARTMENTAL BUDGET 2004/05 – STANDARD ITEMS

26. ProgrammeOriginalAdditional Allocation Adjusted Budget 1. Administration164 75913 290178 049 2. Surveys & Map.71 578(13 511 )58 067 3. Cadastral Surveys81 539(1 938)79 601 4. Restitution854 914(15 860)839 054 5. Land Reform430 45234 921465 373 6. Spatial Planning17 84121018 051 7. Aux. & Ass. Ser.18 027(1 225)16 802 TOTAL1 639 11015 8871 654 997 ADJUSTED ESTIMATE 2003/04

27. ProgrammeBudget R’000 Expendi- Ture R’000 Percentage Spent 1. Administration127 903126 69999.06% 2. Surveys & Map.57 87056 32497.33% 3. Cadastral Surveys74 42672 50797.42% 4. Restitution394 901394 26599.84% 5. Land Reform417 632415 98399.61% 6. Spatial Planning8 0566 88185.41% 7. Aux. & Ass. Ser.11 0734 53740.97% TOTAL1 091 8611 077 19698.66% 2002/03 SPENDING

28. THANK YOU

29. Q&A