The Committee is in agreement with the Department that the budget allocation to the Restitution programme is not sufficient to support the development needs of the country. The Restitution programme had already spent 91 per cent of its budget by the end of the second quarter and the lack of sufficient funding in this area compromises the rural development agenda of government. It is reported that this challenge is worsened by the attitude of land owners who inflate land prices when negotiating the land sale agreement with government and the cost of land is selling at the price which is three times more than the market price which makes the purchase of land expensive. This is worrying since land is central to the implementation of the government's comprehensive rural strategy and if resources are not prioritised for land reform programmes, the objectives of this strategy might not be achieved.