The committee will review the property clause and find out if it is necessary to amend it.
It has until 30 August to report back to the Parliament following the National Assembly’s adoption of the EFF’s motion on land expropriation without compensation.
There has been a mixed reaction since Parliament voted to amend property clauses with EFF leader Julius Malema threatening DA with a divorce where the two organisations are in municipal coalitions.
Malema said his party will be passing a motion of no confidence in the Mayor of Nelson Mandela Bay Metropolitan Athol Trollip, after the DA failed to support his motion, which was passed with the help of the ANC.
“We will be passing a motion of no confidence on the mayor of PE as a warning shot,” said Malema.
Meanwhile, AgriSA said Parliament had failed to rationally argue the impact for agriculture and the economy while debating a motion to pave way for the government’s policy of acquiring land without compensation.
It said emotions had dominated the debate on land. “Rational arguments regarding the possible implications that such a step may hold for the agricultural sector and the broader economy were absent from the debate,”
“The fact is that financial institutions are substantially invested in the sector and that expropriation without compensation will also impact negatively on the banking sector. Such a step will probably lead to a situation where financial institution will no longer make production loans available to farmers,” it said.
Banking SA MD Cas Coovadia told Business Day that expropriation will discourage investment in farm technology and innovation, as well as erode property rights.
AfriBusiness said it will not accept expropriation without compensation, no matter if it is driven by the ANC or the EFF. It said such a move must be done in a way that ensures food security, economic growth and radical economic transformation.
“Landowners should consider the term of President Cyril Ramaphosa as a window period for the hedging of their assets, even if any expropriation without compensation is unlikely to be implemented immediately,” says AfriBusiness CEO Piet le Roux.
Additional reporting by Business Day and Africa News Agency