Muito obrigado! [Thank you very much!]
... any debate on the forestry sector must respond to the demands of government's macro and micro economic policy framework, the New Growth Path policy, which seeks to ensure that across the sectors of our economy we develop labour-absorbing practices - a long-standing ANC perspective. The forestry sector is no exception to this, given its huge potential to create decent work and jobs.
The SA Forestry Company Limited, Safcol, is government's forestry company, conducting timber harvesting, timber processing and related activities, both domestically and internationally. As an important stakeholder in the forestry sector, it has, for far too long, lived under the premise that it will eventually be disposed of. This is derived from the period of the 1997 National Forestry Action Plan, where there were large-scale disposals of state forests.
What is important to note is that there are two processes that have subsequently arisen. The rationale for these processes is to be found in the 52nd National Conference of the ANC. This conference resolved on state- owned enterprises, and I quote:
The ANC and its government must build the capacity of the state in order to pursue the objectives of a developmental state and to ensure that, whilst SOEs remain financially viable ... their primary responsibility is to support and lead in strategic government-led developmental objectives within the realm of a clearly defined public mandate of pursuing an overarching industrialisation programme.
That, Chairperson, is the mandate. Let us contextualise this further. The same conference resolved to begin a process that would culminate in both the ANC and government adopting the October 2010 macro and micro economic policy framework, the New Growth Path. The New Growth Path contains specific roles for state-owned enterprises and is consistent with the National Conference Resolutions that state-owned enterprises are key players in driving economic growth. Forestry is no exception.
Chairperson, let me state the case for Safcol since they are not doing that. Firstly, the institutional framework for the forestry sector and its programmes have been informed by the 1997 National Forestry Action Plan. Generally speaking, most policy documents, after 15 years in existence, require assessment and evaluation. The SA Forestry Company Limited had a specific role to play in this and the question is whether what the Forestry Action Plan set out to do has been realised, and if not, what are the challenges?
Secondly, in the 1990s, when the then Department of Water Affairs and Forestry released state forests, Safcol was left alone, but given the very important mandate of transformation of the forestry sector. This transformation project did not mean that disposal of state assets equalled transformation. Thirdly, the National Forestry Action Plan was drawn up in the first phase of a macroeconomic strategy, which at the time favoured the selling off of state forests to the private sector. This position no longer holds, and we are rather informed by the needs of the New Growth Path. Most importantly, the job drivers in the New Growth Path have relevance for employment levels and criteria that are measured by hectare of forests. The fact that 12 000 green jobs were created through the Forestry Livelihoods Strategy in the 2010-11 financial year bears testimony to the correctness of both policy and implementation.
Fourthly, the perspectives of spatial development in the rural areas and the development of the rural economy must converge in concept and practice with forestry. Rural development is one of the five priorities of government and therefore forestry must resonate and contribute to this priority. Forestry plays an important role in rural development and should have an integrated approach in both its own programmes and that of rural development. The design and implementation of these must be devised in collaboration with rural communities. The environmental and economic orientation of this collaboration must be driven by policy perspective that places the masses of our people in the rural areas at the centre.
Finally, the governing party, the ANC, is preparing for its June 2012 Policy Conference and its December 2012 53rd National Conference in 2012. At the same time the Presidency has, through the Presidential Review Commission on state-owned entities, undertaken a detailed and well-informed process of review. Both of these processes are material to the future of Safcol. The fact that Safcol has not been wound up by 31 March 2009 should indicate that a review is under way and the finality of that will determine the ultimate direction of Safcol.
In conclusion, Chairperson, Safcol plays an important role in rural development and various development projects have been initiated in order to contribute to poverty alleviation in the rural areas. The fact that Safcol created 2 200 permanent and 2 000 contract jobs in the rural areas means that we have to move Safcol into the New Growth Path paradigm and not the existing paradigm of fatalism. Financial stability is critical and as part of an integrated approach with the Department of Economic...