NATIONAL ASSEMBLY
WRITTEN REPLY
QUESTION 749
Â
INTERNAL QUESTION PAPER [No 12-2013]
DATE OF PUBLICATION:Â Â 19 APRILÂ 2013
749. Mr R A P Trollip(DA) to ask the Minister of Rural Development and
Land Reform:
(1) On what basis has the annual rental of a certain person (name
furnished), the current lessee from his department of the farms Uitkyk
and The Flat or Mzinsi project farm in the Hofmeyer District in the
Eastern Cape, increased from R33Â 000.00 pa to R155Â 000.00 pa;
(2) did he call all lessees and land reform beneficiaries to a general
meeting in Gallagher Estate in 2010 to discuss the terms, conditions
and rental payment agreements that would be applicable to the
occupation of State land; if so, (a) have these conditions subsequently
changed and (b) why have they changed;
(3) what steps has his department taken to address the poor state of (a)
water, (b) fencing and (c) other critical infrastructure on farms
Uitkyk and The Flat or Mzinsi project farm in the Hofmeyer District in
the Eastern Cape;
(4) what is his departmentâs policy with regard to properties and farms
that are leased to land reform beneficiaries with regard to the
provision and maintenance of infrastructure and has this been followed
by his department in the case of the farms Uitkyk and The Flat or
Mzinsi project farm in the Hofmeyer District in the Eastern Cape;
(5) has his department allocated a mentor to the farms Uitkyk and The
Flat or Mzinsi project farm in the Hofmeyer District in the Eastern
Cape; if so, (a) what are the terms of the appointment and (b) has his
department considered or assisted the lessee with the implementation of
a business plan to make the property a viable farming enterprise?
NW957E
THE MINISTER OF RURAL DEVELOPMENT AND LAND REFORM:
1) Initially the lease fees were based on 6% of the farms productive value
which has since been changed to 6% of the market value/ purchase price
of the farm. This change is normally implemented on expiry of the
particular agreement.
2) Yes. All Land Reform beneficiaries have been called to several meeting
as part of the Land Reform Green paper consultation process to discuss
all Land Reform matters.
(a),(b) In the provinces where the lease amounts were based on 6% of
the production value, on expiry of the contract, the lessee is
advised of the change by determining the lease amount from
production value to market value of the property and is therefore
given an option. The lesseeâs consent is required before the new
lease agreement is drawn. The lessee can still agree to the new
pricing system but has to advise the Department if he/she cannot
afford the amount and state the amount that they can afford.
(3)(a),(b),(c) In the 2009-2010 financial year, the farms were allocated
an amount of R2Â 335 534.20 for infrastructure improvement.Of the
approved budget of R2 335 534.20, only R1 342 215.90 was used
and it was spent on the infrastructure listed below where the
Mzinsi Project benefited on all except handling facilities:
- Fire breaks : R36 215.92
- Water infrastructure : R806 000.00
- Handling facility : R195 000.00
- House renovations : R305 000.00
The balance of R993 318.30 was meant for fencing; however due to
boundary disputes amongst the beneficiaries, the project was delayed
until the disbandment of the 25% Household Grant and the introduction
of the Recapitalisation and Development Programme (RADP) which the
Project had to comply with.One of the requirements of the new
programme was a Comprehensive Development Plan which was done by the
prospective mentor and submitted to the Department.As part of the RADP
application process flow, the business plan was presented to the Chris
Hani District Committee on 12 June 2012 where it was not supported;
however a Technical Task Team was formed to look at the capital
requirements of the Hofmeyr farms and come up with a feasible way of
developing the farms.
The capital request by the Hofmeyr farms was R21 819 036.00 and this
was viewed as too high for the properties as they only constitute 5
187.7522 ha and an amount of R9 500 000.00 and R1 342 215.90 had
already been spent on them for land acquisition and developments
respectively.
Subsequent to the investigation by the Task Team and recommendations
by the District Screening Committee (DSC) the project was presented to
the Provincial Committee in November 2012 where it was supported. The
next step was for the project to be packaged for approval by the
Branch Head: Land Reform but at this stage the project faced numerous
challenges, amongst them the infighting of Siyaya project members upon
the passing of the Chairperson and the unwillingness of Hofmeyr farm
beneficiaries to sign the new lease agreements.
4) The Recapitalisation and Development Programme is used to address
issues of development and maintenance of farms. Before a farm can be
recapitalized, there must be a signed lease agreement in place because
the beneficiary must take responsibility and ownership of all the
developments that will occuron that particular farm. This policy was
followed with regard to the above farms.
(5) No. The beneficiaries appointed their own mentor and introduced him
to the Department.
a) Falls away.
b) No. The business plan will be presented in the next National Land and
Recapitalisation Allocation Committee (NLRAC) sitting.