AGRI SA SPEAKS ON EXPECTATIONS FOR THE UPCOMING BUDGET SPEECH
"The Minister of Finance, Mr Pravin Gordhan, has the challenge to promote economic growth and meet increased demands for social spending whilst sluggish economic growth constrains government's income. In the Medium Term Budget Policy Statement (MTBPS) of 2011, he made mention of the new course in development of rural livelihoods and we assume that a pivotal role is assigned to the agricultural sector in this regard.
Whilst we recognise the fiscal difficulties within which this objective must be pursued, we are looking forward to a budget which will make adequate resources available to boost agriculture's competitiveness as well as investment in the sector, and subsequently in food production and job opportunities", said Johannes Möller, President of Agri SA.
"Despite the sometimes malicious attempts by various institutions to discredit efforts by the agricultural sector to ensure decent employment opportunities for those involved in the sector, we fully support efforts by government and the business fraternity in this regard. But it should be recognised that there is a direct correlation between net farm income and the ability of farmers to enhance quality employment opportunities. It is, therefore, imperative to address the sector's developmental constraints in order to improve competiveness and profitability as preconditions for the further improvement in the quality of rural livelihoods", Möller added.
"Although the number of employees in the agricultural sector has shrunk in recent times, there remains untapped potential in especially irrigation farming, which could contribute to employment in the sector as envisaged in the National Development Plan - Vision for 2030", Möller said.
The MTBPS focused on a competitiveness support package of R25 billion aimed at industrial development. "We believe that agriculture should also assume its rightful role in this regard, given its potential contribution to employment creation, food security and providing inputs with a view to agro-processing. But such support will only make sense if the cost of doing business in agriculture can be lowered. This can be achieved with targeted investment in the road, rail and harbour infrastructure, on which agriculture is dependent for cost effective access to production inputs as well as to markets", Möller added.