Madam Deputy Speaker, I speak here today in favour of the Co- operatives Amendment Bill. I am of the view that the Bill has the potential to create a sound and robust governance environment within which the co- operative movement may flourish - if it is regulated as much as is necessary in an elegantly designed and appropriate set of institutions.
Deputy Speaker and hon members, the fact is that a large volume of economic transactions take place worldwide in the co-operative environment. There are production co-operatives, marketing co-operatives, buyers' co- operatives, savings co-operatives, and credit co-operatives, a whole range of architectural inventions that have an important place in our economy.
This piece of legislation will bring all co-operatives within the protective embrace of the rule of law. As Hernando de Soto pointed out, why should the benefits of the rule of law be kept to the few who then lord it over the vulnerable and marginalised who happen to inhabit the informal sector? The rule of law protects the exploited from exploitation, and the rule of law provides resources, incentives and government support that can make a huge difference between economic failure and success.
This legislation can also provide a vehicle by which credit can be provided to those who do not hold title to land in South Africa. As we know, we have a system of communal tenure in many parts of the country and those who have communal tenure do not have access to title to land that can be used or housing that can be used as collateral in order to get credit. Therefore, what is of the greatest importance is to recognise the potential of this piece of legislation to solve the problem of credit for those who do not have legal title to land.
I also want to say that communal tenure itself is, of course, a serious problem in certain parts of the country. What we require is individual tenure, but there is enormous room for co-operative buying, co-operative credit facilities, and co-operative grazing in the case of livestock farming. It is, therefore, a powerful vehicle for agricultural development. [Interjections.]