Presentation to the Joint Budget Committee on 2003 MEDIUM TERM BUDGET POLICY STATEMENT 14 November 2003 SARAH CHOANE – CHIEF FINANCIAL OFFICER Department of Land Affairs

CONTENT 1.Departmental Strategic Framework 2.MTBPS overview 3.Contribution of land reform (restitution, redistribution, land tenure, spatial planning) towards -Rural Development and Urban Renewal -Employment and Economic Growth

CONTENT (continued) 4.Departmental input into the MTEF in terms of: - MTEF -Recommendations of the MTEC - Adjusted Estimates -2002/03 spending

VISION An equitable and sustainable land dispensation that promotes social and economic development

MISSION To provide access to land and to extend rights in land, with particular emphasis on the previously disadvantaged communities, within a well planned environment

THE MISSION IS UNDERPINNED BY 6 STRATEGIC OBJECTIVES Provision of access to land Provision of rights in land Effective co-ordination of integrated spatial planning and information

STRATEGIC OBJECTIVES (continued) STRATEGIC OBJECTIVES (continued) Improvement of stakeholder relations Promotion of intra-departmental excellence Improvement & alignment of systems & processes

MTBPS OVERVIEW The Dept supports the MTBPS because it is growth oriented and expansionary, as underpinned by the following key policies: -Employment creation -Strengthening of social security -Growth target of 4% from 2005 onwards

CONTRIBUTION TO LAND REFORM The Department concurs that land reform and restitution remain central to poverty alleviation. The Department is appreciative of the augmentation of the Restitution budget over the MTEF period.

RESTITUTION & URBAN RENEWAL About 80% of land claims lodged are urban. 85% of the claims settled as at 30/09/03 are urban land claims to the value of R600 million were finalised over the last six months where households will benefit hectares of land (land cost: R285 million and financial compensation: R258 million ).

URBAN CLAIMS SETTLED INCLUDE: Kabalange in Uitenhage where the restitution award was used for home improvement, education and livelihood projects for the poor. Alexandra project where each claimant households was paid R Kliptown in Gauteng, 147 households received R7,8million. Putfontein urban housing project to the value of R212 million. East Bank land claim for about claimants in Mdantsane, most have opted for financial compensation.

URBAN CLAIMS (continued) Charlestown in KZN, claimant households, R27m. Barkley West in the Northern Cape, 322 households, R7.4m Luyolo in Western Cape, 400 households, R9.1million. Mlungisi land claim in Queenstown, households

RESTITUTION & ISRDP Rural land claims constitute about 20% of claims lodged. Most are community claims involving large number of hectares, households and land parcels e.g. One Bjatladi Zebediela land claim on citrus farm in Limpopo, involves 331 households (1 244 beneficiaries) hectares (state land) where the grants were R17.5m. On the ISRDP nodes the following claims are in the process of settlement:

RESTITUTION & ISRDP (continued) Makhoba at Alfred NZO, hectares, households, R20m. North pondoland Sugar - O.R Tambo, hectares, households, R36m. Mkambati - O.R Tambo, h, households, R12m. Mbolompo Forest claim - O.R Tambo, h, households. Queenstown Commonage, Lukhaji, h, households Guba land claim, Lady Fre, h, 300 households, R3m Ntabethemba (Thornhill) Queenstown, h, households

CHALLENGES: RESTITUTION Critical issues for urban claims include: –Co operation of municipalities for land acquisition, Bulk infrastructure, technical assistance (human, capital, funding,other support). –Capacity building for community structures and municipalities.

CHALLENGES: LAND REFORM Inadequate resources for Land Redistribution and Land Tenure Reform.

CHALLENGES: LAND REFORM (continued) Ministerial Policy directive made in 2000, that 30% of agricultural land should be distributed in 15 years. Progress to date: –We have redistributed ha under the LRAD programme over the past two years.

CHALLENGES: LAND REFORM (continued) Projected figures to meet the 30% target: –82 million hectares of commercial agricultural land is “White- owned”, 30% of which is 24,7 million hectares –Thus we need to redistribute 1,6 million hectares per annum

CHALLENGES: LAND REFORM (continued) The required financial resources : –R34,5 billion over 15 years translating into R2,3 billion per annum, based on a conservative price of R1 400 per hectare

CHALLENGES: LAND REFORM (continued) –Initially the slow pace was ascribed to inadequate implementation systems and structures. However, these have been addressed and the major challenge that the Department is now facing is insufficient financial resources.

Programme2004/05 (R’000) 2005/06 (R’000) 2006/07 (R’000) 1. Administration Surveys & Map Cadastral Surveys Restitution Land Reform Spatial Planning Aux. & Ass. Ser TOTAL MTEF BASELINE ACCORDING TO PROGRAMMES

For Land Reform 2004/05 R’m 2005/06 R’m 2006/07 R’m Dept request for additional budget MTEC MTEC RECOMMENDATION

Economic Classification2004/05 (R’000) 2005/06 (R’000) 2006/07 (R’000) Personnel Current Transfers Current Other Capital Transfers Acquisition of Capital Assets TOTAL MTEF BASELINE PER ECONOMIC CLASSIFICATION

DEPARTMENTAL BUDGET 2004/05 PER PROGRAMMES

DEPARTMENTAL BUDGET 2004/05 – STANDARD ITEMS

ProgrammeOriginalAdditional Allocation Adjusted Budget 1. Administration Surveys & Map ( ) Cadastral Surveys81 539(1 938) Restitution (15 860) Land Reform Spatial Planning Aux. & Ass. Ser (1 225) TOTAL ADJUSTED ESTIMATE 2003/04

ProgrammeBudget R’000 Expendi- Ture R’000 Percentage Spent 1. Administration % 2. Surveys & Map % 3. Cadastral Surveys % 4. Restitution % 5. Land Reform % 6. Spatial Planning % 7. Aux. & Ass. Ser % TOTAL % 2002/03 SPENDING

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