Presentation to the Joint Budget Committee

on2003 MEDIUM TERM BUDGET POLICY

STATEMENT 14 November 2003

SARAH CHOANE – CHIEF FINANCIAL OFFICER

Department of Land AffairsDepartment of Land Affairs

CONTENTCONTENT

1. Departmental Strategic Framework2. MTBPS overview3. Contribution of land reform

(restitution, redistribution, land tenure, spatial planning) towards

- Rural Development and Urban Renewal

- Employment and Economic Growth

CONTENTCONTENT (continued) (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

MISSIONMISSION

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 THE MISSION IS UNDERPINNED BY 6 STRATEGIC OBJECTIVESBY 6 STRATEGIC OBJECTIVES

• Provision of access to land

• Provision of rights in land

• Effective co-ordination of integrated spatial planning and information

STRATEGIC OBJECTIVES STRATEGIC OBJECTIVES (continued)(continued)

• Improvement of stakeholder relations

• Promotion of intra-departmental excellence

• Improvement & alignment of systems & processes

MTBPS OVERVIEWMTBPS 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 CONTRIBUTION TO LAND REFORMREFORM

• 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 42 556 claims settled as at 30/09/03 are urban.

• 6 875 land claims to the value of R600 million were finalised over the last six months where 17 999 households will benefit 265 778 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

R50 000.

• Kliptown in Gauteng, 147 households received R7,8million.

• Putfontein urban housing project to the value of R212 million.

• East Bank land claim for about 6 000 claimants in Mdantsane, most have opted for financial compensation.

URBAN CLAIMS (continued)

• Charlestown in KZN, 1 100 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, 1 290 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) 5 973 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, 1 693 hectares, 1 400 households, R20m.

• North pondoland Sugar - O.R Tambo, 10 000 hectares, 2 000 households, R36m.

• Mkambati - O.R Tambo, 17 400h, 2 200 households, R12m.

• Mbolompo Forest claim - O.R Tambo, 10 000h, 3 000 households.

• Queenstown Commonage, Lukhaji, 1 500 h, 3 600 households

• Guba land claim, Lady Fre, 10 000 h, 300 households, R3m

• Ntabethemba (Thornhill) Queenstown, 23 000h, 14 600 households

CHALLENGES: RESTITUTIONCHALLENGES: 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 REFORMCHALLENGES: LAND REFORM

• Inadequate resources for Land Redistribution and Land Tenure Reform.

CHALLENGES: LAND REFORM CHALLENGES: LAND REFORM (continued)(continued)

• Ministerial Policy directive made in 2000, that 30% of agricultural land should be distributed in 15 years.

• Progress to date:– We have redistributed 813 101 ha

under the LRAD programme over the past two years.

CHALLENGES: LAND REFORM CHALLENGES: LAND REFORM (continued)(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 CHALLENGES: LAND REFORM (continued)(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 CHALLENGES: LAND REFORM (continued)(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.

Programme 2004/05

(R’000)

2005/06

(R’000)

2006/07

(R’000)

1. Administration 171 427 182 006 192 927

2. Surveys & Map. 76 609 81 261 86 137

3. Cadastral Surveys 84 711 89 757 95 142

4. Restitution 939 797 1 063 032 1 126 814

5. Land Reform 477 328 523 132 554 519

6. Spatial Planning 19 178 20 158 21 367

7. Aux. & Ass. Ser. 19 122 20 269 21 485

TOTAL 1 788 172 1 979 615 2 098 391

MTEF BASELINE ACCORDING TO MTEF BASELINE ACCORDING TO PROGRAMMESPROGRAMMES

For Land Reform

2004/05

R’m

2005/06

R’m

2006/07

R’m

Dept request for additional budget

564 633 670

MTEC - 100 250

MTEC RECOMMENDATIONMTEC RECOMMENDATION

Economic Classification 2004/05

(R’000)

2005/06

(R’000)

2006/07

(R’000)

Personnel 361 165 382 522 405 671

Current Transfers 2 200 2 332 2 451

Current Other 310 036 323 392 341 498

Capital Transfers 1 083 265 1 237 804 1 312 072

Acquisition of Capital Assets 31 506 33 565 36 699

TOTAL 1 788 172 1 979 615 2 098 391

MTEF BASELINE PER ECONOMIC MTEF BASELINE PER ECONOMIC CLASSIFICATIONCLASSIFICATION

1 - Administration

2 - Surv. & Mapping

3 - Cadastral Surv.

4 - Restitution

5 - Land Reform

6 - Spatial Plan. & Info

7 - Aux. & Assos. Serv.

110%

24%

35%

452%

527%

61%

71%

DEPARTMENTAL BUDGET 2004/05 DEPARTMENTAL BUDGET 2004/05 PER PROGRAMMESPER PROGRAMMES

120%

20%

317%

461%

52%

1 - Personnel

2 - Current Transfers

3 - Current Other

4 - Capital Transfers

5 - Acquisition ofCapital Assets

DEPARTMENTAL BUDGET 2004/05 – DEPARTMENTAL BUDGET 2004/05 – STANDARD ITEMSSTANDARD ITEMS

Programme Original Additional Allocation

Adjusted Budget

1. Administration 164 759 13 290 178 049

2. Surveys & Map. 71 578 (13 511 ) 58 067

3. Cadastral Surveys 81 539 (1 938) 79 601

4. Restitution 854 914 (15 860) 839 054

5. Land Reform 430 452 34 921 465 373

6. Spatial Planning 17 841 210 18 051

7. Aux. & Ass. Ser. 18 027 (1 225) 16 802

TOTAL 1 639 110 15 887 1 654 997

ADJUSTED ESTIMATE 2003/04ADJUSTED ESTIMATE 2003/04

Programme Budget

R’000

Expendi-

Ture

R’000

Percentage Spent

1. Administration 127 903 126 699 99.06%

2. Surveys & Map. 57 870 56 324 97.33%

3. Cadastral Surveys 74 426 72 507 97.42%

4. Restitution 394 901 394 265 99.84%

5. Land Reform 417 632 415 983 99.61%

6. Spatial Planning 8 056 6 881 85.41%

7. Aux. & Ass. Ser. 11 073 4 537 40.97%

TOTAL 1 091 861 1 077 196 98.66%

2002/03 SPENDING

THANK YOU

Q&A