Institute of Race Relations releases alternative expropriation bill

23 April 2015 - 09:23 By RDM News Wire

The Institute of Race Relations (IRR) has put forward its own alternative expropriation bill that it says has many advantages over the Nxesi Bill. The Nxesi Bill (Expropriation Bill of 2015) was put forward by Public Works minister Thulas Nxesi. The IRR says the Nxesi Bill is going to make it much harder to build prosperity and overcome past disadvantages by undermining property rights‚ deterring investment‚ and choking off growth and jobs.The IRR has thus developed an alternative expropriation bill with many advantages over Nxesi’s one‚ says Dr Anthea Jeffery‚ head of policy research at the IRR.The IRR’s alternative bill deals with all the defects in the current Expropriation Act of 1975. By contrast with the Nxesi Bill‚ it is also fully in line with the constitution.Unlike the Nxesi Bill‚ the IRR’s measure says that the state must obtain a high court order confirming the constitutional validity of a proposed expropriation – and the adequacy of the compensation proposed – before it issues a notice to expropriate any property.It also details the stringent conditions attached to the compensation proposed.Adds the IRR: “The Nxesi Bill omits these safeguards against potential abuse. It is also unconstitutional in empowering the State to take ownership and possession upfront – leaving it to the owner to seek redress in the courts thereafter‚ if he can afford this.“Worst still‚ the Nxesi Bill seeks to oust the jurisdiction of the courts by allowing them to adjudicate solely on the compensation offered – and not on the overall validity of the expropriation.Says Jeffery: “To speed up this process‚ South Africa needs growth at 6% of GDP a year‚ coupled with an upsurge in investment and employment. Instead‚ the Nxesi Bill threatens to reverse these.“Anyone who doubts the importance of property rights – and the dangers in allowing the state to undermine them – has only to look north to Zimbabwe‚ west to Venezuela‚ and east to North Korea to understand why the Nxesi Bill must be rejected and why the IRR one should be adopted in its stead.”..

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