Let me rather shoot now. The White Paper on Agriculture provided for the removal of agricultural support systems, and the sector has since been operating within the confines of market forces, resulting in the Land Bank being subjected to competition from commercial banks in attracting investment funds. It is unable to provide a safety net to emerging and small scale farmers.
The government must therefore review its agricultural development strategy and emulate countries like Brazil, India, China and Kenya that have developed successful safety nets for their agricultural sectors. A number of countries have been able to create mechanisms to cushion their agricultural sectors, but we are not providing safety nets.
The Agricultural Credit Act and the Agricultural Marketing Act - repealed in the 1990s - were support systems which assisted the Land Bank in providing long-term loans at way below market rates. The insignificant number of successful new farmers is indicative of the lack of such support structures.
To overcome this problem, government has to collaborate with role-players, including the Land Bank, to develop a value-chain financing model which provides safety nets for new farmers. I have taken note of what the Minister has said about this.
More importantly, government needs to formulate a comprehensive rural development strategy, where agriculture takes centre stage and the roles of all government agencies are clearly articulated. Any economic and industrial development plan must include agriculture if it is to make a meaningful impact.
During 2008, the Land Bank ended up in the intensive care unit. It is now, apparently, in the open environment. It will have to grow its commercial business in order to survive.
The developmental mandate can only be carried out successfully with governmental intervention. The commercial and developmental portfolios must be split. The developmental book must be ring-fenced with government- provided guarantees and cash injections intended to finance new farmers with long-term loans at very low costs. This will also improve their credit profile. Just like that of the old Agricultural Credit Board, the aim must be to provide finance solutions that address the Land Bank's exposure to high risks, while simultaneously improving the new borrowers' equity positions by lowering debt equity ratios to more manageable levels.
Having had no insight into the Land Bank's latest financial statements, peripheral indications are that the bank seems to be on track, and I hope that they don't let us down.
However, the disbursal of R85 million AgriBEE funds, done under the watch of a former acting CEO to what I will term dubious and ghost beneficiaries, still remains unresolved and a spot of bother. Finality is needed and those responsible for any wrongdoing should be brought to book.
Nationally and internationally the need for increased investment in research is recognised. Many countries see the need for measures to address agricultural research, particularly so because food security is vital and future stability non-negotiable.
After intensive consultation over a six to eight-year period, a National Agricultural Research and Development Strategy was developed and signed off by the Minister of Agriculture in 2008. That strategy, the result of the involvement of all role-players, should be implemented without delay.
Amongst other things the document highlights a critical need to increase the funding of agricultural research and identifies a two-pronged approach: firstly, that the parliamentary grant to the Agricultural Research Council be substantially increased and strengthened to ensure its fulfilment of its key mandates of research and maintenance of national assets and services; secondly, that a national agricultural research and technology fund be created in order to leverage funds. I will leave it at that.
The other question concerns the Rift Valley fever outbreak which has caused the deaths - our condolences go out to those human beings, fellow South Africans, who lost their lives - and the hospitalisation of many. This is proof that we are ill-prepared to respond to emergencies. We need to address this vigorously.
The facilities and equipment at the world-renowned Onderstepoort Biological Products facility, which should be considered a natural key point, are almost 50 years old. Needless to say, it needs upgrading and a huge injection of capital. I will not be able to expand further in my remaining time.
There is also a general shortage of veterinarians in our country, including in the private sector. Unfortunately, the government's remuneration package is not competitive enough to make being a veterinarian a worthwhile profession for people.
Unfortunately, my time is coming to an end, but I have prepared something I need to address to the officials, the bureaucrats, in our community, but which is also applicable to all of us. You cannot operate a department, an entity or a business if you lack commitment to the highest standards of integrity. There should be integrity in your delivery of promises, tangible or intangible; integrity in your research results; integrity in your proclamation of the qualities and powers of products, medicinal, nutritional or durable. Integrity must prevail throughout your organisations. Integrity must be evident in everything you say and do and in your conduct.
My challenge to all of you is this: You need to demonstrate that your practices and leadership are of the highest standards of integrity. You are not only entrusted with the leadership and oversight of a department, an entity or a business, but also with the stewardship of leading the struggle for the emancipation of our people from the shackles and bondage of poverty, need and want. We look to you to expose, through your own leadership and your own performance, the personal integrity and dedication to your duties that our beloved land and all our people living on it are entitled to and expect from you. Thank you. [Time expired.] [Applause.]