Agri SA slams racialisation of water use licence regulations

Agri SA has criticised government for racialising water use licence regulations, saying that attempts to address transformation in the sector through a racially based ownership lens will not achieve the desired effect but may just threaten food security.

Instead, the federation of agricultural organisations suggests that the sector’s transformation should be done within the confines of the law using existing B-BBEE legislation which offers a more holistic approach to inclusivity. It further adds that women empowerment should also be included in the current draft regulations instead of just targeting racial transformation quotas.

The Department of Water and Sanitation caused disruption in the agricultural sector when it publicised draft regulations in June that would see the revision of the procedural requirements for water use licences.

According to the department, the changes seek to promote equitable allocation of water use in an environment that finds approximately 75.93% of issued water use licences in the hands of historically advantaged individuals (HAI) and the rest in the hands of historically disadvantaged individuals (HDI).

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If passed, the new regulations would require enterprises applying for water use licences to have a majority (75%) black ownership structure to qualify. However, it is worth noting that government’s proposed new transformation efforts will only apply with respect to 1.5% of South Africa’s unallocated water resources.

Agri SA acknowledges that the regulations are not intended to apply to applications for the renewal of existing water use licences nor to the water use licence applications which will arise out of compulsory licensing.

Inconsistent regulations

Despite this, Agri SA’s legal and policy executive Janse Rabie has expressed concern in a statement on Monday that the current draft regulations are inconsistent with relevant provisions of the National Water Act, the Equality Act and the Constitution.

“No provision in the National Water Act empowers the Minister to make regulations prescribing substantive requirements for licence applications or for the determination of licence applications,” Rabie says.

“Even if such a power is inferred, the Act provides that, in issuing a licence, the responsible authority must take into account all relevant factors. This includes a list of 11 factors, including efficient and beneficial use of water in the public interest, the socio-economic impact of water use, and investments already made by a water user.”

“The need to redress past racial and gender discrimination is one of these 11 factors. By law, when determining an application for a water licence, the responsible authority must strike a reasonable balance between all the factors,” Rabie adds.

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As such, the organisation says it has submitted its objections to the proposed legislative amendments to the department, countering the proposal with the suggestion to reformulate the draft regulations to address the inconsistencies it has found.

Protecting the country’s food security is just one of the issues the organisation has addressed in its submission noting that the government’s attempts at transforming the sector should not come at the expense of food production.

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