Agri SA says adoption of resolution on land expropriation will damage economy | Fin24
 
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Agri SA says adoption of resolution on land expropriation will damage economy

Nov 15 2018 12:21
Fin24

Agri SA has slammed a resolution adopted by a committee of Parliament on Thursday to alter a section of the Constitution to allow for expropriation of land without compensation,  saying it will cause “large scale damage to the South African economy”. 

As News24 reported earlier, the Joint Constitutional Review Committee on Thursday adopted a resolution that Section 25 of the Constitution be amended to allow expropriation of land without compensation.

The motion in favour of altering the Constitution passed with 12 votes in favour, and four against. 

The federation of agricultural organisations said in a statement after the resolution was adopted that the motion was opposed to the goal of sustainable agrarian reform, and would hurt investor confidence. 

“Agri SA sees this as an unacceptable outcome of an extended consultation process wherein Agri SA took a firm stance against EWC. Agri SA clearly articulated on several occasions the serious consequences of such a step.”

“We have made extensive preparations in order to act effectively and will cast additional resources to this fight,” said Dan Kriek, Agri SA President.“Agri SA believes in constructive dialogue with all stakeholders, but now is the time to draw a line.”

It said it would now start to role out a “tactical plan”, which would include consultations with its legal team around possible litigation, and meetings with local and international role-players including American and European trade partners. 

It did not immediately say what the possible litigation would involve. 

The motion was passed a day after President Cyril Ramaphosa, asked about expropriation without compensation at a media briefing in Strasbourg, France, described the issue of unequal land distribution as a “festering sore”.

"We need to address this issue because if we don’t address it, this stability that we have ... as a country could be in danger,” he said. 

The rand, meanwhile, was trading at R14.33/$ on Thursday at 12:17. 

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