Controversial land paper release delayed
PRETORIA - The Department of Land Affairs and Rural Development has held off on submitting its Green Paper on Land Reform to the relevant cabinet clusters, saying that it was still reviewing some aspects of the draft policy document. Earlier media reports stated that the document was to be submitted to parliament on Monday, July 19.
It is speculated that the green paper will stir angry debate and resistance from especially commercial farmers. Although the draft is not yet available for public review it is suggested that it will restrict the amount of land that individuals and companies may own. Foreigners may also be prevented from owning land in South Africa unless they are married to South African citizens. Further the state may have the right of first refusal when a property owner decides to sell their land.
Land Affairs Spokesperson Eddie Mohoebi did not disclose any of the contents of the paper, but said that it was a long way from being adopted as policy. First the paper will be submitted to the relevant cabinet clusters, after that it will be submitted to the National Council of Provinces and only then will it be tabled as a draft policy document. The document will also be submitted for public scrutiny before it can be passed as policy. Mohoebi wasn't able to give a timeframe for the submission of the Green Paper to the Economics Sector and Employment Cluster.
Meanwhile Efficient Group Chief Economist Dawie Roodt has warned that restricting foreign land ownership in South Africa would be akin to government shooting itself in the foot. According to Roodt, owning land does not translate into an increased standard of living. Only the proper development and utilisation of land would lead to community upliftment. If land was to be handed over to communities who couldn't effectively manage the land, it would erode the economy.
Foreign investors often have a vested interest in turning a profit from the land that they purchase. This includes developing infrastructure, injecting foreign capital and providing expertise. By restricting foreign land ownership, government will be discouraging foreign investment.
Roodt says the country is reversing global trends by trying to increase state interference in land ownership. Even Mozambique, which previously had very onerous policies on landownership, has been relaxing its policies over the past few years in an attempt to encourage infrastructure development and foreign investment.
The result of this policy relaxation has been an explosion of coastal development in Mozambique, a lot of it driven by South Africans. Many of these developers have chosen to invest in their neighbouring country because of the uncertainty surrounding new land reform policies at home.
Roodt believes the failure of the land reform process thus far has more to do with flaws in the process, than it has to do with unwilling landowners. "Government is the biggest landowner in South Africa. I feel they should give away the land they already possess, instead of appropriating more at a cost to the economy."
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Comments
And as we know, all the government-aided transfers of agricultural land done thus far has been overwhelmingly successful. This will not be any different, but watch food prices skyrocket.
by WTF on July 21 2010, 09:20
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If govt ever has a right of first refusal (if it ever comes to that) perhaps one should watch the process carefully, as we wouldn't want it to become an option (without the responsibilities of the option holder). MA concern could be that government will . .more
by Christelle Weale on July 21 2010, 16:58
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Entrepeneurs invest where the outcome (profit) is predictable, time to start becoming food independant in SA.
by Dewald on July 21 2010, 19:25
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