Department of Land Affairs (Vote 30) Presentation to the Joint Budget Committee on 2004 MTBPS 2 November 2004 DR G P MAYENDE – DIRECTOR-GENERAL Apology for the DG Intoduce Team

AREAS TO BE COVERED Policy Context Department’s Strategic Framework Ten Year Review MTEF Targets Challenges MTEF Funding

POLICY CONTEXT In line with the Government's 2004 Manifesto of " A people' s contract to create work & fight poverty", the Medium Term Strategic Framework identifies land and agrarian support as one of the key interventions of government in the second economy to address the human basic needs of livelihood, shelter and security. (Reflections on South Africa’s economic development path)

POLICY CONTEXT (cont.) As government strive to fight poverty and inequality through work opportunities, income support and empowerment, the importance of land in facilitating economic activity in agrarian reform, housing and security cannot be overemphasised. This however has to happen within a sound land planning framework.

POLICY CONTEXT (cont.) Settlement Challenges This slide illustrate the settlement challenges that we are faced with where in an urban context you will find blacks located in araes of insignificant economic activity as compared to whites who are in the minority

POLICY CONTEXT (cont.) ‘Without succeeding on…legal and political fronts, no nation can overcome the legal apartheid between those who can create capital and those who cannot. Without formal property, no matter how many assets they accumulate or how hard they work, most people will not be able to prosper in a capitalist society. They will continue to remain beyond the radar of policy-makers, out of reach of official records and thus economically invisible’. In the words of Hernando De Soto:- Hernando de Soto (the Mystery of Capital, p167)

Support for Land Reform Programmes POLICY CONTEXT (cont.) Support for Land Reform Programmes Programme Depts. and spheres Partnerships Land & Agrarian Reform DoA, DLA, DoH, DPLG AgriSA, NAFU, GDS Land Redistribution Programme Co-operation among various stakeholders in the public and private sector is key for pooling of resources and alignment of activities Restitution Programme Labour Tenant Programme State Land Administration

DEPARTMENT’S RESPONSE TO POLICY VISION An equitable and sustainable land dispensation that promotes social and economical development Our response to this policy framework as a Department we envision .........VISION................ AND we intend to achieve this through..........MISSION

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 The Departmental Objectives are supported by the following programmes:-

DEPARTMENTAL PROGRAMMES Restitution Land Reform Redistribution Tenure Spatial Planning & Information Land administration Surveys & Mapping Cadastral surveys Deeds Registration It is important taht we reflect on our perfromance in the 10 years before we can share with our plans going forward.

TEN YEAR REVIEW - ACHIEVEMENTS POLICY & LEGISLATIVE FRAMEWORK CAPACITY BUILDING UNPRECEDENTED PEFORMANCE IN: THE SETTLEMENT OF RESTITUTION CLAIMS PARTICIPATION IN THE LRAD PROGRAMME REMARKABLE FINANCIAL PERFORMANCE We have been able to to formulate and develop policy and legislation to faciliate land and tenure reform as well as restitution, the most recent piece of legislation passed is the Communal Land Rights Act. We have built the necessary capacity that is instrumental for our unprecendent performance in the settlement of restitution and participation in the Land Redistribution for Agricultural Development (LRAD) Our remarkable financial performance underpins this.

TEN YEAR REVIEW: RESTITUTION } 16 380 This slide provides a graphic presentation of how deliver has been accelerated in Restitution Cumulative figures

TEN YEAR REVIEW: REDISTRIBUTION } Although there is still a long raod ahead in terms of redistribution, it is pleasing to note that LRAD programme which was implemented 3 yaers ago, has contributed 652 966 hectares of the 1,683 million hectares distributed. 10 057 Cumulative figures

SPENDING TRENDS Programmes 2002/03 R’000 % spending 2003/04 % spending Administration 126 699 99.05% 163 770 92.44% Surveys & Mapping 56 324 97.33% 61 401 98.60% Cadastral Surveys 72 507 97.42% 68 161 90.32% Restitution 394 265 99.84% 839 116 99.91% Land Reform 415 983 99.61% 453 734 97.50% Spatial Planning 6 881 85.41% 11 866 65.74% Aux. & Assoc Services 4 537 40.97% 10 390 61.84% TOTAL 1 077 196 98.65% 1 608 438 97.19% We have entrenched the culture of high financial performance and this evident from our spending trend for the past two financial years which is well over the 95% mark. Of note is that although from a cursory look of % it might seem that our spending level has dropped, in real terms spending increased by 49% that is R531 millioin from R1.077 billion in 2002/03 to R1.608 billion in 2003/04

SPENDING TO DATE (SEPT 2004) 2004/05 FINANCIAL YEAR Programmes Pre MTBPS Budget R’000 Spending to Sept Available budget % spending Administration 213 548 72 946 140 602 34% Surveys & Mapping 73 617 24 916 48 701 Cadastral Surveys 80 886 34 413 46 473 43% Restitution 934 831 697 566 237 265 75% Land Reform 501 514 158 379 343 135 32% Spatial Planning 19 262 5 639 13 623 29% Aux. & Assoc Services 8 224 169 8 055 2% TOTAL 1 831 882 995 028 837 167 54% The trend has been set and is improving. Looking at current year, the Department's spending is at 54% with Resitution posting 75%. It is claer that the R200 million allocated by the Minister of Finance through the Adjusted Appropriation will become handy and we are most grateful.

DEPARTMENTAL PRIORITIES - MTEF Restitution Complete restitution programme Interventions for failed projects. Redistribution Redistribute 30% of agricultural land by 2015 Tenure Settlement of 25 000 labour tenants claims Implementation of the Communal Land Rights Act Effective State Land Administration Looking ahead and as informed by the MTSF, the Departmet wll be focussiong on the following priorities:

DEPARTMENTAL PRIORITIES – MTEF (continued) Formalise co-operative arrangements with Dept of Agriculture to facilitate participation of: land reform and restitution projects in the Comprehensive Agricultural Support Programme (CASP). Communal land projects in the Agricultural Credit Scheme. Finalise and Implement BEE wrt land acquisition and facilitate skills development on technical and management expertise

CHALLENGES Public Pressure to deliver Resources Post settlement support Unsustainable land prices/ settlement packages As the Minister of Finance indicated in his Speech on the 2004 Medium Term Budget Policy Statementand I qoute "Land redistribution and agricultural development need to be given greater impetus but completion of the restitution programme is the pressing claim on resources over the MTEF period". CASP will provide the much needed support post settlement Discussion inthe Department are underway to find solutionds for unsustainable land prices and settlement packages

2005 MTEF TARGET - RESTITUTION The next 4 slides illustrate the gap between "between targets that are covered by the baseline budget amounts and those that I aren't". Cumulative figures

2005 MTEF TARGET – LABOUR TENANTS Cumulative figures

2005 MTEF TARGET – REDISTRIBUTION Cumulative figures

2005 MTEF TARGET – STATE LAND ADMINISTRATION Cumulative figures

2005 MTEF TARGET – COMMUNAL LAND RIGHTS REGULATIONS TRAINING AND DEVELOPMENT COMMUNICATION ESTABLISHMENT OF INTERNAL & EXTERNAL STRUCTUREs SURVEYING OF BOUNDARIES LAND RIGHTS ENQUIRIES ACQUISTION OF LAND Areas of f

DEPARTMENTAL BUDGET 2005 MTEF Programmes Adjusted 2004/05 R’000 Baseline 2005/06 2006/07 2007/08 Administration 213 548 198 102 209 800 220 290 Surveys & Mapping 73 617 77 251 81 935 86 032 Cadastral Surveys 80 886 87 468 92 732 97 369 Restitution 1 134 831 1 156 823 1 370 307 1 438 822 Land Reform 501 514 619 369 800 568 840 596 Spatial Planning 19 262 20 248 21 462 22 535 Aux. & Assoc Services 8 224 20 269 21 485 22 559 TOTAL 2 031 882 2 179 530 2 598 289 2 728 203

THANK YOU

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