Hon Chairperson, hon Minister Joemat-Pettersson, hon Deputy Minister Mulder, hon members and distinguished guests, all ANC speakers who participated in their respective Budget Vote debates to date were guided in these debates by the all-embracing and rallying call that came out of our 53rd ANC national conference in December 2012, namely "Unity in action towards socioeconomic freedom".
This economic rallying call inspires the content of my speech when looking at forestry as a key and strategic economic resource of our country. This economic resource accounts for 1% of the national GDP and 15% of South Africa's trade balance. The sector employs 170 000 people and provides livelihood support for 850 000 people and the means of survival to almost 50% of South Africa's rural population.
The forestry sector makes a significant contribution to poverty alleviation in the rural areas. The key challenge for the forestry sector in respect of the theme of socioeconomic freedom is to demonstrate practically how it promotes and contributes to the country's economic growth, employment, poverty eradication and economic transformation.
There is no doubt that the consultative and participatory engagements in the formulation and implementation of the forestry sector policies and programmes in the country are primarily dealing with rural economic growth, poverty eradication and employment creation. Key amongst these policies and programmes is the Forestry Sector Transformation Charter. [Interjections.] Ask yourself!
This charter outlines targets and commitments by industry, government and labour in consultation with communities towards sustainable transformation throughout the sector. Notably, the forestry sector code incentivises higher targets on social investment. The overall progress on the charter undertakings to date indicates a reasonable improvement towards transformation.
In assessing what we mean when we say "reasonable improvement towards transformation", the indicators of funding, information-sharing, skills development and capacity-building are used when assessing progress towards the transformation targets.
With respect to the targets that we set to attain black ownership, it is important to indicate that community trusts for the three communities in KwaZulu-Natal have been established and registered. The transfer of these assets to the relevant tribal authorities was done through a community forest agreement. The transfer plan for the Rossbach Plantation in Limpopo has been developed by all the affected stakeholders, and the Small Enterprise Development Agency, Seda, is assisting with the development of a business plan. In Mpumalanga the transfer plan of Injaka Plantation has also been developed by all the affected stakeholders - three land claimant communities.
The forest sector has strived to get new afforestations started for a long time. We can celebrate the success of the Eastern Cape environmental impact assessment, EIA, that was done in the past year and which has yielded fruits. This means that the Department of Water Affairs will be issuing water licences for a minimum of 5 000 hectares. One of the tools that was helpful during this process was the afforestation protocol. In this regard, Forestry SA, FSA, has been very supportive during the EIA process. It shows that, working together, we can do more to grow the sector and improve rural livelihoods.
There has been an improvement in the number of water use licences that were issued to small growers who were previously disadvantaged, as well as to our BBBEE-compliant companies. While the first transformation report highlighted the fact that the forestry sector was not performing well in terms of skills development, we are pleased to note that the forestry industry has strengthened the participation of the forestry sector in activities of the Forest Industry Education and Training Seta. The restructuring of the Seta landscape will bring the most desired results in this area of work. Overall, there is improvement.
With respect to the collection, management and investment of the rental money collected by private commercial forestry companies that have leased the land from the state through long-term forestry lease agreements, the Forestry Laws Amendment Act mandates the Minister to establish a trust that is responsible for collection, management and investment of the rental money, as outlined.
The progress on the Kabelo Land Distribution Development Trust, which was established in 2010 to enable the transfer of rental money into the account and keeping the separate financial records that can be audited annually in line with the Public Finance Management Act, shows great progress. Payments have been made to community beneficiaries to the amount of R91 million. Importantly, the department signed a memorandum of understanding, MOU, with the different communities, wherein the MOU outlines the duties and obligations of each of the parties.
Another noteworthy achievement in forestry is approval by Cabinet of the recommissioning of the Lowveld plantation forestry areas located in the Sand River catchment area in Mpumalanga province. The approval paves the way for replanting 4 178 hectares of the initial 11 000 hectares of the Lowveld plantation forest areas situated on the state forest land in the Sand River catchment area, where there were previously clear fields, for incorporation into the proposed Blyde River National Park. We welcome the proposed business model for the ongoing utilisation of these areas in a manner that will benefit the historically disadvantaged communities of the Lowveld.
To ensure the sustainability of the sector and enhance its growth, whilst protecting the environment, major projects have been undertaken that either have or will result in the refurbishment of 23 000 hectares Category B and C plantations; the rehabilitation of degraded indigenous forest woodland and agricultural land; ensuring sustainable management of forestry and natural resources; the rehabilitation of 32 208 hectares of range land, cultivated land, weeds and invader plants through the implementation of protection and conservation measures; and the support of 1 300 small growers with capacity-building interventions, including technical advice, training and linking them to potential funders, to improve production efficiency in forestry and socioeconomic livelihoods.
We welcome initiatives and interventions to increase production within the subsistence smallholder and commercial forestry sectors in line with the implementation of the Forestry Sector Transformation Charter to ensure renewed growth, transformation and sustainability.
Let me come to the all important area of the review of the Forestry Sector Transformation Charter. The review of the charter will deal with a number of obligations that have proven difficult to achieve. These are the kind of initiatives that are needed for the sustainability of the forestry sector, especially the small, medium and micro enterprises, SMMEs. The specific needs of SMMEs will have to be addressed in this review, and this includes research.
In conclusion, our experience of the last 19 years of democracy reminds us that social and economic change is not a process that can be planned with precision. A long-term vision which sets out the type of society that we want to be is important to guide our social and economic transformation programmes. The ANC supports this Budget Vote. [Time expired.] [Applause.]