ARAC REPORT TO CONGRESS – 26th July 2011
The ARAC team would like to extend particular thanks to outgoing President Deon Theron, VP Charles Taffs and our own outgoing Chairman Pete Steyl for their commitment and dedication to our constituency. In addition we thank the Director and staff of CFU for accommodating us over the past year. To our resource partners who have made our work possible, a special thank you. This ARAC report to Congress seeks to review our work and covers the context, organizational frame work, programmes as well as the economic and financial dimensions involved.
Looking first at the context we ask, why are we here? Essentially to make a difference serving farmers affected by FTLRP: farmers past, present and future. We need to unpack that and what that means. In 2008, following the GECKO consultation, a survey of around 500 farmers indicated that roughly 50% of evicted farmers no longer wish to return to farming and would like to receive compensation to bring closure. The balance would be interested to return to their own farm, although roughly half of them were prepared to farm elsewhere. Interestingly 78% of managers interviewed would like to farm again and close on 80% of all farmers would be prepared to reinvest in Zimbabwe, given the right circumstances. We need to know how these positions have changed. This really depends on individuals and their particular circumstances: Resources, Expectations, Age and Location
In examining the role of ARAC we need to unpack the terms of both recovery and compensation.
We need to understand what we mean by recovery. Put simply, we need a positive investment environment. We need to recognise that for every dollar of compensation achieved when reinvested it can generate a further three in onward investment. We need to look at the structure of future farming representation and work towards the desired situation. We need to look at preparing farmers for re-engagement. We need a thorough study of implementation models and we must deploy a strategy to promote them proactively. We need to engage resource partners constructively. All this needs to be achieved within a sound legal structure.
What do we mean by compensation? I suggest an acronym: PAID
Principle of equivalence i.e. no better or no worse off than before the event
Agreed amount with an option for arbitration
Insured by local and international agreement
Delivered in a time bound, transparent and accountable process.
Put simply, ARAC aims to empower, unify and heal our constituents, to obtain fair compensation for all losses, to restore favourable and inclusive environment for agricultural renewal and assist with the welfare of our elderly.
What does success look like? I would suggest that it is dignity restored for the elderly, opportunity for the active and inclusion for our children. To achieve this we require commitment, support, assistance, strategy and resources. This commitment and support cannot rely only on a few but needs to draw broadly on the constituency we are trying to assist.
Our challenges can be broadly separated into local and external. On the external side, we have lost the right of appeal against nationalization because the SADC Tribunal has been suspended. With regard to the ICID process only a few people have access to international arbitration and even in the case of the Dutch nationals, in spite of the judgement in their favour; no award has yet been paid. In terms of international engagement in recovery and compensation, the response is definitely conditional upon regularizing domestic political issues. On a local level, the challenge comes because, whilst GOZ accepts a duty to pay compensation, the state only accepts liability for improvements against its own valuation and for land, via proxy, from Britain which accepts no direct responsibility. No provision is made for disturbance losses. A further challenge lies in the global political agreement which sees FTLRP as irreversible and the local courts which concur in their recent judgments. To top it all, Zimbabwe is broke and finding ways to meet the costs of paying any acknowledged liability is a difficult process.
Looking at membership, our current membership comprises 70% of Union membership; however, we contribute only 23% of licence fees and cover (with the support of projects) only around 50% of our direct costs. Nonetheless, we have been able to secure independent grant funding in excess of $100,000 for various projects over the past year. ARAC has focused on meeting the needs of our constituency through representation by committed farmers on its committee, through our dedicated office and through council. Our committee seeks to connect with constituents, articulate their concerns, represent these and ensure execution. We have worked hard to improve regional representation on council and more specifically through the compensation sub-committee. The office and its projects have focused on communications through the sending out of regular updates, emails, correspondence, contributions to debates and position papers, through listening to the many people who pass through the office and by giving advice and liaison with bodies such a Valcon and others.
Our advocacy has focused on substantial input into The Way Forward DVD, investigations into pensions, equity release options and general engagement on issues concerning compensation recovery, the new constitution and the indigenisation debate. We are currently working on a DVD that profiles ‘Farmers, Past Present and Future’.
On the research side we aim to record, interview, analyse, report and disseminate information. We are currently looking into:
· Government policy as it affects agriculture and land since the GNU came into being,
· the particular issues relating to BIPPAs,
· a case study on the Doma Trashings,
· a critical interrogation of the work of Scoones et al
· and a specific research into consequential losses and the production of models in this regard.
As a matter of interest, research covering SADC Tribunal applicants in the Mike Campbell case shows disturbance costs broken down as a national trend roughly: direct consequential costs 8%, income loss 49%, and the losses attributable to loss of movable assets 43%. Total costs per hectare of composite disturbance losses amount to around $350/ha. Costs vary considerably from region to region and depend a great deal on the variance in enterprises affected. The work on specific models is ongoing.
Finally in caring for our constituency we aim to provide opportunities for training, empowerment and healing. This is currently pursued through a close association with Foundations for Farming where we have had two very successful workshops. We hope to continue this activity. They have also hosted a Ladies Day to coincide with Congress. We are able to refer people for counseling, have a data base of members CV’s who are looking for placement opportunities and have been able to assist with the distribution of food parcels on a regular basis to many hard pressed folks.
We see no solution without:
· a return to the rule of law,
· putting an end to the disputed title essentially through compensation
· without reinstatement of respect for human rights including property rights and investment agreements
· and note that it is essential for the re engagement of competent farmers and skilled workers in the recovery process that
· should not exclude investment by our constituency in the agricultural sector.
· This requires a thorough revision of the indigenisation agenda to affect an end to the current discrimination we experience.
In conclusion, our vision is: a healed country with productive and empowered citizens, a place where exclusion is replaced by a fundamental acceptance of human rights including the right to property where a strong and vibrant agricultural sector thrives protected by the rule of law.
Our thanks and best wishes to you all for a great congress and successful new year.
Ben Gilpin on behalf of all at ARAC
ARAC – Agricultural Recovery & Compensation
COMMERCIAL FARMERS’ UNION OF ZIMBABWE
Tel: +263 4 309800-19 ext 249
Email: [email protected]