The DA announced on their web page that Mr Maans Nel, DA spokesperson on Land Affairs, have written to Minister Trevor Manuel urging him to launch an Economic Impact Analysis study of the Expropriation Bill, 2008. While the DA supports a sustainable and equitable land reform process in South Africa, they believe that the bill will impact negatively on the economy, and therefore increase unemployment and increase poverty.
With the wide-reaching powers given to the minister the bill will scare off both local and foreign investors. There is a symbiotic relationship between the economic well being of a country and the security of property rights. By giving a wide definition of property, the bill gives enormous power to the minister to expropriate any property. To compound the matter she can now compensate at less that the economic value of the expropriated property.
According to the bill, the person whose property is expropriated can only challenge the procedure leading to the expropriation, not the amount awarded.
Such a state of affairs can only lead to a decline in economic activity, as without the certainty that their businesses and properties will not be taken away from them at the arbitrary will of the government, people are less likely to start businesses, create jobs and invest their money. With the decline in the economy, poor people will be the worst hit, because they will be the first to lose jobs and will not be able to flee the consequences.
The DA challenge to the minister stems from a proven fact that there is a relationship between the security of property and a thriving economy. The minister must initiate a study on the economic ramification of the Expropriation Bill.
Thabazimbi News l Nuus
