EXCLUSIVE: Cronin lifts veil on new draft expropriation law

Chris_the_Brit

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A new expropriation bill, set to be tabled in Parliament in the next two months, will set out a clear procedure for land expropriation without compensation and ensure it is an “administratively just process”, according to Deputy Minister of Public Works Jeremy Cronin.

Earlier this month a draft expropriation law was withdrawn from Parliament to make way for a new bill that will set out a system of expropriation based on the ANC’s decision to amend the Constitution to allow for more muscular land reform.

“It will be a process to prevent arbitrary deprivation,” says Cronin, who says the draft law will be light-touch legislation. The Department of Public Works is currently drafting the bill which will soon be complete.

This will be the law which will give expression, procedure and form to any constitutional amendments to make more explicit the grounds under which expropriation without compensation can take place.

The procedure will:
  • Ensure the expropriator has exercised his or her mind;
  • Provide that a notice of intention be sent to the local municipality and all affected parties;
  • Make provision for objections within 30 days;
  • Issue a notice of expropriation plus an offer of compensation which could be nil, thus making it an expropriation without compensation; and
  • Make provision for counter-proposals.
The draft expropriation law will also give an indication of the kinds of land that can be taken without compensation.

A task team on expropriation, previously led by Cronin, identified land and property that could be expropriated without compensation as abandoned buildings, unutilised land, commercial property held unproductively and purely for speculative purposes, underutilised property owned by the state, and f land farmed by labour tenants with an absentee titleholder.
https://www.fin24.com/Economy/exclusive-cronin-lifts-veil-on-new-draft-expropriation-law-20180918
 

ambroseg1

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under what fair circumstances should the offer of compensation ever be nil?
 

Ancalagon

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A task team on expropriation, previously led by Cronin, identified land and property that could be expropriated without compensation as abandoned buildings, unutilised land, commercial property held unproductively and purely for speculative purposes, underutilised property owned by the state, and f land farmed by labour tenants with an absentee titleholder.
This means that the government has decided you are not allowed to buy land as an investment. Let's say you think that Dorpiesfontein is the next big up and coming thing. You are not allowed to buy land there to hold for 50 years until Dorpiesfontein makes it big and your land is worth millions.

If you then sell your Dorpiesfontein property and buy a farm in the Karoo to retire to, you better use that farm "productively" otherwise they will take it away from you. So you aren't allowed to just buy a piece of ground for its natural beauty - you have to do something with it.

I foresee many problems with this. Number one is that it is being done by the ANC, which means it will definitely be corrupt. The land will be taken from anyone and given to connected ANC elites.
 

konfab

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commercial property held unproductively and purely for speculative purposes
Why am I not surprised that these commies do not understand basic economics...
The entire economy is based around "speculative purposes". A farmer who raises chickens for the market is speculating on the price of chicken in the future. Someone who gets an engineering degree is speculating on the value of their services in the future. A factory owner investing in new machinery is speculating on the value of their products.
Notice how they won't define exactly what is speculative.

It is in this buying and selling that speculators help to better allocate resources to their highest uses. As Carret articulated it, speculators do so by "opening reservoirs of capital to the growing enterprise, shutting of the supply of capital from enterprises which have not profitably used that which they already possess." In this respect, the speculator is an "advance agent" directing capital to its highest uses.
https://mises.org/library/speculation
 

sox63

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The procedure will:
  • Ensure the expropriator has exercised his or her mind;
  • Provide that a notice of intention be sent to the local municipality and all affected parties;
  • Make provision for objections within 30 days;
  • Issue a notice of expropriation plus an offer of compensation which could be nil, thus making it an expropriation without compensation; and
  • Make provision for counter-proposals.
This won't make the EFF crowd happy at all.

EDIT: Personally I would also add that a valid land claim has to be the basis of all this.
 

f2wohf

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This means that the government has decided you are not allowed to buy land as an investment. Let's say you think that Dorpiesfontein is the next big up and coming thing. You are not allowed to buy land there to hold for 50 years until Dorpiesfontein makes it big and your land is worth millions.
That actually already exists in many countries to avoid speculative holding of land and artificial bubbles being created.
 

DreamKing

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I really don't support any action of buyout.

that is not an action of investment, that is monopoly.
 

BBSA

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So if this draft expropriation bill is in line with our current constitution, then there is no need to change the constitution?
 

f2wohf

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So if this draft expropriation bill is in line with our current constitution, then there is no need to change the constitution?
He says it still needs a constitutional amendment to make the constitution clearer.
 

flippakitten

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That actually already exists in many countries to avoid speculative holding of land and artificial bubbles being created.
Exactly, a good example is New Zealand who, last I heard passed a law to prevent foreigners buying houses, I believe they can still purchase land and build on it though.
 

BBSA

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A gazetted land claim accepted by the Land Claims Court.
No that does not make it valid, it just means there is a claim. The courts must still decide if it is valid.
 
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