Land Reforms, Expropriations: impact on Local Government an - PowerPoint Presentation

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Land Reforms, Expropriations: impact on Local Government and revenue maximisation IMFO 2016 ANNUAL CONFERENCE Durban International Convention CentreChristopher Gavor (Valuer-General)October 04, 2016Slide2

Order of presentationLand reform : strands of it and the role of the OVGKey initiatives/ interventions of land reformPotential impact(s) of these interventions/initiatives on municipal financesExpropriationsPotential impact(s) of expropriations

Impact(s) on municipal finances (financial, social)

Municipal support for land reform/ expropriations and its impact on income/ revenueSlide3

DefinitionsLand reform (noun): the statutory division of agricultural land and its reallocation to landless people (oxford dictionary)Land reform may consist of a government-initiated or government-backed

property

redistribution

, generally of agricultural land. Land reform can, therefore, refer to transfer of ownership from the more powerful to the less powerful, such as from a relatively small number of wealthy (or noble) owners with extensive land holdings (e.g., plantations, large ranches, or agribusiness plots) to individual ownership by those who work the land. Such transfers of ownership may be with or without compensation; compensation may vary from token amounts to the full value of the

land (Wikipedia)Slide4

Vision for land reform..A reconfigured….system of land tenure ensuring reasonable assess to land with SECURE TENUREClearly defined PROPERTY

RIGHTS

SECURE

forms of land tenureEffective land use planning and regulatory systemsSlide5

Definitions Property Valuation Act No 17 of 2014Land

Reform means: land redistribution, land restitution, land development and tenure

reform

‘‘property’’ means—immovable property registered in the name of a person;any movable property which is contemplated to be acquired together with the relevant immovable property; anda right in or to such property, including an unregistered right recognised and protected by law; Slide6

Definitions (PVA No 17 of 2014)‘‘value’’, for purposes of section 12(1)(a), means the value of property identified for purposes of land reform, which must reflect an equitable balance between the public interest and the interests of those affected by the acquisition, having regard to all the relevant circumstances, including the—

(a)

current use of the property;

(b) history of the acquisition and the use of the property;(c) market value of the property;(d) extent of direct state investment and subsidy in the acquisition and beneficial capital improvement of the property; and(e) purpose of the acquisition.Slide7

Some key challengesLack of nationwide comprehensive, reliable, collated hub of property data not standardised, ito

valuation practice

Conflict of interest and malpractice

registry of all land made available eg ownership, size, location, land potential, land utilisation, current market value

Just and equitable value for property

Regulations/ standards

Potential and highest and best use

SACPVP visibility in dealing with valuation malpracticesSlide8

The OVG…balance between-policy and regulatory function

and

-operational functions

Requirement to keep the OVG independent for operational reasons, while….

Ensuring that the OVG is able to render policy and regulatory advice effectivelySlide9

Powers of the Valuer GeneralEstablish and maintain a database of property and land market information, and store the information in hardcopy electronic or any other medium; Request a person or body to disclose, either orally or in writing, any information that may be relevant for inclusion in the database, and question any person about such information

;

Determine manner

in which the information stored in the database, either in raw or processed form, may be retrieved or accessed by third parties, including any fees payable;Determine any other information that must be included in the database;Slide10

RURAL

ECONOMY TRANSFORMATION:

AGRARIAN

TRANSFORMATION SYSTEM

AGRARIAN

TRANSFORMATION

‘

A rapid and fundamental change in the relations (systems and patterns of ownership and control) of land, livestock, cropping and community.’

COMMUNITY:

Social infrastructure,

ICT infrastructure,

Amenities,

Facilities.

LAND:

Tenure system reform,

Strategic land reform

interventions/redistribution,

Restitution,

Land based resources.

CROPPING:

Economic infrastructure:

agri

-parks, fencing,

Inputs: seeds, fertilizer,

pesticides, etc

Extension support ,

Fresh produce markets,

Credit facilities.

LIVESTOCK:

Economic infrastructure: Processing plantsSmall industries Abattoirs, animal handling facilities, feed-lots, mechanising stock water dams, dip tanks, silos, windmills, fencing, harvesters, etc

Roads, bridges, energy, water services, sanitation, library, crèches, early childhood centres, Police stations, clinics, houses, small rural towns revitalisation.

State and Public Landlease hold2. Private LandFree hold with limited extent3.Foreign land ownershipA combination of freehold with limited extent and leasehold; and,4. Communal landCommunal tenure: communal tenure with institutionalized use rights.5. Institutions5.1 Land Management Commission5.2 Valuer General5.3 Land Rights Management Board with District and Local Committees5.4 National Rural Youth Service Corps5.5 Rural Development Agency with rural cooperatives financing facility

Food Security:Strategic Partnerships: MentoringCo-managementShare equity Modalities being worked out between the Dept and farmers; big and small

Meeting Basic Human Needs

Enterprise development

Agro-village industries; credit facilities; markets

Phase I

Phase II

Phase III

Tenure System Reform

Rural development measurables

VIBRANT, EQUITABLE AND SUSTAINABLE RURAL COMMUNITIESSlide11

Some Land reform programmes…Strengthening of relative rights of people working the land (farm workers) – 50 50 programmeOne household One hectareAGRI-PARKSSlide12

50 50Slide13

One household One hectareSlide14

One household One hectareSlide15

Land reform programmesSlide16

AGRI-PARKSAn Agri-park is a networked innovation system of agro-production, processing, logistics, marketing, training and extension services, located in a District Municipality. As a network

it enables

a market-driven combination and integration of various agricultural activities and

rural transformation services. The Agri-park comprises three distinct but interrelated basic components:1. The Farmer Production Support Unit (FPSU) -a rural small-holder farmer outreach and capacity building unit that links farmers with markets. The FPSU does primary collection, some storage, provides some processing for the local market, and extension services including mechanisation.

2. The

Agri

-hub (AH) - a production, equipment hire, processing, packaging, logistics, innovation and training unit.3. The Rural Urban Market Centre (RUMC). The RUMC has three main purposes;• Linking and contracting rural, urban and international markets through contracts.

• Acting as a holding-facility, releasing produce to urban markets based on seasonal trends.

• Provides market intelligence and information feedback, to the AH and FPSU, using

latest Information

and communication technologies.Slide17

Expropriationsthe action of the state in taking or modifying the property rights of an individual in the exercise of its sovereignty (Merriam-Webster)The taking of private property for public use or in the public interest (the free dictionary)

Compulsory

seizure

or surrender of private party for the state's purposes, with little or no compensation to the property's owner. Governments or their agencies can effect an expropriation by making changes in legal code, tax code, or regulations such as zoning (BusinessDictionary)Slide18

Compensation for expropriationsS. 23 of the Constitution states that an owner of affected land “shall be entitled to just and equitable compensation as prescribed by the Constitution”. Section 25(3):The amount of compensation and the time and manner of payment must be just and equitable reflecting an equitable balance between the public interest and the interests of those affected, having regard to all the relevant circumstances, including

(a)

the current use of the property;

(b) the history of the acquisition and use of the property;(c) the market value of the property;(d) the extent of direct state investment and subsidy in the acquisition and beneficial capital improvement of the property; and(e) the purpose of the acquisition.Slide19

CompensationCompensation (noun):something, typically money, awarded to someone in recognition of loss, suffering, or injury; money that is paid

to someone in

exchange

for something that has been lost or damaged or for some problem (www);: something that is done or given to make up for damage, trouble, etc’,: something good that acts as a balance against something bad or undesirable,

: payment given for doing a

job (

Marriam-Webster).The payment a landowner is given to make up for the injury suffered as a result of the seizure when his or her land is taken by the government (FreeDictionary)Slide20

Benefits of these programmesGrowth in GDPGeneration of employmentReduction of povertyLand availability for human settlementsCost/ Ease of land acquisition

Infrastructure investmentSlide21

Sustaining municipal viabilityReduction in government grantsExpansion of servicesAdditional tax and services chargesReduction in crimePost-acquisition of landSlide22

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