#RetirementLiving - Issue 47 April/May 2020 April/May 2020 | Page 36

COMMUNITY LIVING
Crossways Farm Village
Land rights and water rights are a burning issue
Water gives land its value
34 H O A
Land rights are therefore at the very heart of South African political dynamics , and they came to the fore during the negotiations that ended our festering conflict in 1994 . Part of the deliberations at CODESA , the negotiating forum that created our democratic constitution enacted in 1996 , dealt with the issue of land expropriation . Enshrined in the new constitution was the core principle that no land may be expropriated without compensation at free market value . This frustrated the ambitions of the ANC negotiating elite , but it was a reality that had to be dealt with .
The great fear at that time was the Zimbabwe land grab , which had plunged the country into an economic crisis by collapsing the financial system . After all , land was used as collateral for loans from banks , so when it was merely seized , banks lost their collateral and were unable to function .
The idea therefore came to light that the process of land transfer could be managed without the catastrophic consequences that were becoming manifest in Zimbabwe at that time by contesting de Groot ’ s philosophical principle , and rather managing access to water .
Water is what gives land its value , so the separation of water rights from land ownership rights gave the ANC government a powerful lever with which to control the asset base of what was perceived to be the wealthier minority . The NWA therefore nationalised water , and placed ownership in the hands of the state . This meant that the ANC now controlled a major asset class that had , until then , constituted wealth for the ethnic white minority . This had far-reaching implications because , in an instant , it meant that all water users had to have permits for that use . This created an administrative burden that the state has never managed to deal with effectively .
The red tape
Prior to 1998 , individuals , businesses , farmers , mines and estates had an inalienable right to use the water running through or under their land . But the gist of the NWA is that all water users and potential water users must apply for permission to use water , so , at the stroke of a pen , this right became subject to a permit . At the time , it was pretty much a formality , so landowners who applied in 1998 were almost invariably granted permission . However , water authorisations are valid only for a defined term , and must be renewed every five years without any guarantee that the same allocation will be given in the future .