Chairperson, Chief Whip, House Chairs, hon members, Minister, Deputy Minister, MECs and departmental officials. This afternoon it gives me great pleasure to debate some of the policy priorities of the Department of Agriculture, Forestry and Fisheries as presented by Budget Vote No 23.
"Let us make agriculture a viable investment option that will open more opportunities for enhanced investment and growth of African agriculture." This statement was made by the Commissioner for Rural Economy and Agriculture of the African Union, on Monday, 29 June 2009, whilst addressing journalists at a press conference at the 13th ordinary session of the assembly of heads of state and government of the African Union in Sirte, Libya, under the theme: Investing in Agriculture for Economic Growth and Food Security.
Agriculture and, more specifically, food security is on the minds of everyone. Globally, with the economy in recession, countries are looking at internalising rising food costs by maximising food production within the limited resources that are available. Currently, Africa's food import bill is at US$33 billion. This implies that there are opportunities for South Africa to export to other African countries.
The policy issues highlighted in the department's Budget Vote include the need to increase agricultural support to emerging farmers and land reform beneficiaries whilst striving to transform the agricultural sector for the benefit of all South Africans. The inclusion of forestry and fisheries as economic drivers to develop sustainable livelihood in rural areas is an excellent way to focus on developing the economy while increasing the sector's contribution to the GDP.
This is paramount to achieving success and transformation within the broader agricultural sector, while securing an income for the rural poor. The areas of agriculture, disease control, disaster management and soil conservation are concurrent areas of competence for national and provincial authorities. Therefore, I will focus my debate this afternoon on the policy priorities that have been identified by the executive for implementation with this Medium-Term Expenditure Framework.
The allocation of agricultural grants, according to the Division of Revenue Act, to the different provinces and the spending of this grant will be closely monitored and evaluated by this committee. The department will be held accountable for depriving our communities of these services if these grants are not used properly and returned unspent.
This first programme I would like to speak about is the Comprehensive Agricultural Support Programme. Expansion and provision of agricultural support services to promote and facilitate agricultural development, but targeting subsistence emerging commercial farmers, are aligned with the strategic prioritise of our government. This policy priority of the department is fully supported as it speaks to achieving one of the strategic priorities of this new government.
The allocation of 60% of the department's budget for this programme is excellent; this indicates that there is a real increase of 12% after factoring in inflation. The support that was previously insufficient for land reform beneficiaries must now be prioritised and linked with the comprehensive rural development strategy of the Department of Rural Development and Land Reform to achieve the goals set in the President's state of the nation address.
The agricultural disaster management programme that provides relief to farmers from the effects of drought, veld fires, cold spells, hail storms and flood via grants to the provinces is fully supported. These grants are vital for the success of the emerging farmers and land beneficiaries who need to buffer themselves from the effects of climate change that can occur in the form of these disasters. This committee is concerned about expenditures and transfers that are not made in time to the communities and will hold the department accountable on these issues. In order for the sector to be productive, grants and support need to be provided to the people and in time within growing season.
The Letsema programme provides universal access to agricultural support service and the amount allocated to the provinces will be scrutinised to ensure that the required funds are transferred to the communities that need them most. KwaZulu-Natal, Northern Cape and the Free State have the highest allocation of this grant and these provinces need to show success in the sector by increasing production and ensuring food security for the people.
The support that the department provides to the beneficiaries in the form of extension services and capacity-building to ensure productivity will be closely evaluated. The committee also intends to monitor the implementation of grants that provide for infrastructure development and agricultural support as the provision of these services to our communities is important for success.
Sufficient postsettlement support should be provided for land reform beneficiaries so that farms which are productive are able to make a significant contribution to decreasing poverty in rural households and are able to provide food to urban households. These linkages between rural and urban areas must not be lost and closer partnership should be forged between the spheres of government to ensure this happens. The rural divide should be decreased and the dependence on each other should be clearly illustrated.
The Mafisa Fund, a financial mechanism to provide access to funds to rural communities for agricultural projects, is commendable, but it has high interest rates, and timeous transfer of funds to the beneficiaries is required in order for the sector to grow sustainably and be productive. The Minister is urged to address the high interest rates and the transfer of funds so that emerging farmers can start contributing actively to the economy.
The focus on the youth, women and other vulnerable groups in agriculture is imperative. The committee is very supportive and excited about the department's women in agriculture and rural development and youth in agriculture and rural development programmes. The time has come for our forgotten youth and women from the rural peri-urban areas to rise and fight for their rightful place in the sector and economy of South Africa.
In conclusion, the department is commended for consolidating all the national funding schemes into a one-stop shop to facilitate the transfer of funds to beneficiaries and to be more cost-effective. We are looking forward to seeing innovative ways of implementing the current and new agricultural policies that the department has developed. [Time expired.] [Applause.]