Plea to Banks to Come to the Aid of Farmers Affected by Fires in Overberg

One of the consequences of devastating fires that raged from 1-4 February 2006 in the Overberg over approximately 46 000 hectares is the total destruction of mainly veld and fynbos in the conservation areas. This led to extensive damage to the wild flower industry and especially the export market which rendered approximately 4 000 people unemployed.

In the past I could rely on the willingness of financial institutions to listen to our plea to assist the farmers in the drought stricken areas, as well as the farmers affected by hail damage.

I have therefore been mandated by the Provincial Cabinet to call on banks to assist the wild flower industry in this region as the industry indicated that there is no insurance coverage for the harvesting of wild flowers and the direct losses could amount to R391 000 000.

I had a meeting at Elsenburg this morning with most of the financial institutions to give effect to the instruction by the Cabinet.

As always, the financial institutions were extremely sympathetic to our pledge and most of them have already started with their own assessments of the situation in conjunction with their clients in the affected areas.

I am pleased that they have all indicated that clients who have suffered losses could approach them in order to discuss possible solutions. All the banks indicated that they would reconsider the rescheduling of loans or consolidation of debt to assist this industry in dire need. The banks have also reported that not only producers were affected but also people in the value chain. In one instance one supplier lost almost 30% of his supply but the bank also provided him with the necessary assistance.

One aspect raised by SAPPEX is the need for insurance and I will in due course also approach insurance service providers to raise the matter with them as the banks did indicate that they are willing to look at options to finance premiums on this type of insurance.

The Department of Agriculture will also draft a memorandum to the provincial treasury for possible assistance to farmers in respect of the R1, 5 million for infrastructure losses, which they have suffered.

Enquiries:
Alie van Jaarsveld
Spokesperson
Ministry of Agriculture: Western Cape
Tel: 021 483 4930
Fax: 021 483 3890
Cell: 084 604 6701
Email: avjaarsv@pgwc.gov.za