Smaller grants after SAA bailout ‘a slap in struggling farmers’ faces’

Finance Minister Tito Mboweni’s R10.5-billion lifeline to the ailing SA Airways (SAA) has affected some crucial government services, with the Democratic Alliance (DA) warning that budget cuts in the Gauteng department of agriculture and rural development would have a negative impact on projects.

Delivering the Medium-Term Budget Policy Statement in parliament last month, Mboweni said money allocated to the national carrier would fund its business rescue process.

Included among government departments on the receiving end of Mboweni’s budget cuts were the SA Police Service (R1.2 billion), higher education and training (R1.13 billion) and transport (R681 million).

But DA Gauteng MPL Ina Colliers said cuts in key agriculture and rural development projects in the province amounted to R1.3 billion.

“Critical funding is being taken away from the Gauteng department of agriculture and rural development.

“Reductions in provincial conditional grants are made proportionately across provinces.

“The Land Care, Poverty Relief and Infrastructure grants are intended for a favourable and supportive agricultural services environment for the farming community – in particular subsistence and smallholder farmers,” said Cilliers.

Programmes affected by budget cuts included the:

• Comprehensive Agricultural Support Programme Grant, with a reduction of R911 000 – from R82.6 million to R81.7 million;
• Ilima-Letsema Project Grant reduced with R306 000 from R25.7 million; and
• Land Care, Poverty Relief and Infrastructure grants, with a reduction of R57 000.

“The Ilima-Letsema helps vulnerable communities to achieve an increase in agricultural production within strategically identified grain, livestock, horticulture and aquaculture production areas,” said Cilliers.

“The support programme grant promotes and facilitates agriculture development by targeting beneficiaries of land reform, restitution, and redistribution.

“It is worrying that subsistence farmers will now have to forego the opportunity to acquire piggery, poultry structures and plant crops to the tune of R1.4 million.”

Cilliers described the cuts as “a slap in the face of farmers who are already struggling.

“It is clear that government is not thinking about how these bailouts will affect the lives of the poor and the vulnerable. Their lives are made a little harder so the ANC can fund vanity projects.

“Choosing SAA over farming, means the government cares little about growing a sustainable economy.”

– brians@citizen.co.za

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