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CHAPTER 2
NAMPO’s view was always that the government had to accept responsibility for the
deficit in the Stabilisation Fund, given the circumstances under and way in which
it arose. After many negotiations the government finally undertook in 1989 to take
over the deficit, which had been recorded as a loss in the Maize Board’s books.
Although the government accepted responsibility for the Stabilisation Fund, they
did not want to pass it on to the Treasury. The loss was therefore still recorded in
the Maize Board’s books, and interest was calculated on it annually, which meant
that it was included in the Maize Board’s budget.
The National Party-controlled government never settled that debt. After the
election in 1994 that brought the ANC-controlled government into power, a new
Minister of Agriculture was appointed. A delegation from the Maize Board led by
the Chairperson convinced the Minister that the government was responsible
for paying the deficit in the Stabilisation Fund, and it was at last settled by the
new government.
Levies
The maize industry was subject to three levies that had been introduced in terms
of the Marketing Act and/or the Summer Grain Scheme.
The first of these was a general levy introduced by the Minister in terms of the
Marketing Act. It was collected by the Maize Board, but paid over to the Department
of Agriculture to fund the South African Agricultural Union.
The second was an ordinary levy that the Maize Board charged in terms of the
Summer Grain Scheme to fund the Board’s administrative expenses like the cost of
advertising, administration, research, market information and distribution.
The Maize Board was also authorised, in terms of the Summer Grain Scheme, to
collect special levies on maize. The special levy was used to pay the marketing costs
the Board had to incur to market maize. This included the transport costs to ports,
finance costs, losses on exports, storage costs and handling costs.
When maize was sold to or through the Maize Board to a person who was not
registered for trading inmaize in the ordinary course of business, the levy had to be
paid by the seller (the producer). If maize was sold to a person who was registered
to trade in maize, the levy was payable by the buyer. However, no levy was payable
on maize that was employed for personal use by the producer.
Powers, duties and functions of the Maize Board
In addition to the ordinary powers required to carry out administrative functions,
the Maize Board possessed the following authority:
• To buy and sell maize and maize products;
• with the approval of the Minister of Agriculture, to prohibit the sale of maize
and maize products to any party other than the Maize Board or its agents or
registered maize traders, and charge a levy on maize that was processed or
bought from producers;
• to grant financial and other assistance with respect to research;
• to establish an information service in order to inform producers about marketing
conditions;
• to encourage the domestic consumption of maize and maize products and
promote the development of the maize industry in South Africa; and
• to advise the Minister of Agriculture on general matters like the grading require-
ments for maize, arrangements with respect to the import and export of maize
and maize products and, in general, the marketing and/or processing of maize and
maize products.
In addition to the functions of the Maize Board with respect to the marketing of
maize and other types of grain, it served as a material link in the maize industry in
various respects and various fields:
• The Board and its agents were responsible for the acceptance, grading, storage
and distribution of the country’s maize supplies. In this regard the agricultural
co-operatives played the main role, but the Board also appointed millers and