THE IMPACT OF NEW LAND OWNERSHIP ON FIRE RISK IN THE SA FORESTRY SECTOR

1. THE IMPACT OF NEW LAND OWNERSHIP ON FIRE RISK IN THE SA FORESTRY SECTOR Fire Symposium 3 – 5 Oct 2018 By Roger Godsmark

2. Presentation Outline • An Overview of Land Reform in SA • The Occurrence of Forest Fires in South Africa • Impact of Forest Fires • The Fire Risk Challenge & Possible Solutions • Conclusion

3. Section 1 An Overview of Land Reform in SA

4. The Government’s Land Reform Initiative Hinges on three “legs” • Land Restitution (i.e. land claims) • Tenancy Reform (i.e. labour tenant claims) • Land Redistribution (i.e. “voluntary” transfers) Most impact - land restitution

5. Objectives of Land Reform Initiatives Originally based on meeting Government’s ASGISA growth targets (later NDP) • Achieve economic growth of at least 6% per annum • Reduce unemployment by half (1 million jobs) • Reduce poverty by half • Provide skills required by the economy • Stimulate economic growth in the agricultural / forestry sector This was to be done through proactive land acquisition by State to speed up land reform (+/- 75 000 claims)

6. Overall Outcomes to Date Unfortunately these noble objectives and that of restoring peoples’ dignity have not been realised because of….. • Inadequate budgetary provisions for the DRDLR • Lack of post-settlement support in terms of: • Financial support • Transfer of title deeds (thus, no collateral against loans) • Skills development • Corruption and maladministration As a consequence of the above factors, the speed of land reform has been slow and transferred land, a failure.

7. Land Reform in the Forestry Context • It is estimated that between 60% and 70% of forestry land is under claim (although varies considerably between Provinces) • Few land claims have been settled to date due to: • De-gazetting & legal challenges still underway • Complex claims & DRDLR budgetary constraints • The DRDLR, as a rule, only buys the land, not the trees This latter point is important as this forces the previous land- owner & new beneficiaries to work together The post-settlement support models developed by the Industry have resulted in a win-win situation through continued sustainable production

8. Greatest Impact of Land Reform in Forestry From an analysis that FSA conducted some years ago, the following will feel the impact of land reform the most: Private Growers Growing Hardwood Pulpwood In KwaZulu Natal The “Knock-On” effect will thus be felt the greatest by the Pulp, Paper and Board Sectors

9. New Legislative Developments There are a number of new legislative developments • Expropriation Without Compensation • Expropriation Amendment Bill • Restitution of Land Rights Amendment Bill • Opening up of claim period (160 000 new claims lodged) • Regulation of Agricultural Land Holdings Bill • Imposition of land ceilings • Banning foreign ownership of land All of the above could substantially change the ownership of plantation forestry land in the future

10. Section 2 The Occurrence of Forest Fires in South Africa

11. Damage to Plantations1980 to 2017 Years Note: Stats do not include S. Cape fires in July 2017

12. Damage to Plantations by Fires2007 to 2017 Fire damage has decreased from the horrific fires of 2007 & 2008 Note: Stats do not include S. Cape fires in July 2017

13. Damage to Plantations by Firesby Genera 2007 to 2017 Note: Stats do not include S. Cape fires in July 2017

14. Causes of Plantation Fires2007 to 2017 OF CONCERN The cause of most forest fires is actually not known Note: Stats do not include S. Cape fires in July 2017

15. Industry Response to Fires in 2007 & 2008 These fires were a huge “Wake-up” call for the Industry and led to…. • Huge capital expenditure on: • Ground based fire fighting equipment (e.g. fire tenders) • Fire detection systems • Relooking at aerial fire fighting capacity & systems • Implementation of improved fire fighting co-ordination systems • Increased focus on fire fighting training + new qualifications • Increased focus on fire awareness • fire danger index & local communities

16. Section 3 Impact of Forest Fires

17. Economic Impact of Forest Fires 1. Economic Impacts • Impact on Forestry Industry • Value of timber volume losses (present and future) • Cost of unplanned harvesting and transport • Cost of re-establishment • Huge disruption caused by unplanned age-class distribution changes • Impact on Processing Industry • Lost present intake i.r.o. non-salvageable timber • Lost future intake (age-class dependent) • Value of lost production • Immediate surge in volume to be processed • Marketing and stockpiling problems

18. Other Impact of Forest Fires 2. Environmental Impacts • Atmospheric pollution • Loss of biodiversity • Damage to soil • Unsightly landscape (reduced tourism) 3. Social Impacts • Loss of life • Loss of jobs • Loss of livelihoods (business owners) • Loss of infrastructure The economic, environmental & social impacts of fires are huge and in the case of large fires, devastating

19. Section 4 The Fire Risk Challenge & Possible Solutions

20. Implications of Land Reform for Forestry If land reform is not done in a sustainable manner it could not only result in reduced production but also…. • Degradation of plantations • Mismanagement of fuel loads (more and bigger) • Irresponsible burning of fuel loads / firebreaks / grazing land • Decrease in membership of FPA’s • Reduction in fire fighting training interventions • Reduction in ground based and aerial fire fighting infrastructure Leading to increased fire risk

21. Legal Responsibilities of Landowners In terms of the National Veld and Forest Fire Act (Act 101 of 1998), the following applies…. • If a fire spreads from your property, then you are deemed NOT to have been negligent. • Onus on 3rd party to prove your negligence. 1. If a member of an FPA 2. If not a member of the FPA • If a fire spreads from your property, then you ARE deemed to have been negligent. • Onus on you to prove not negligent.

22. Challenges for New Landowners In terms of new beneficiaries of land, the scale of the challenge can be highlighted by the following statistics provided by Safire (Mpumalanga 2011 – July 2018) in relation to one new (community) landowner (7 000 ha) • Total number of fires reported – 347 • Burnt area – 1 517 hectares (average 4.4 hectares) • Totally destroyed area – 1 051 hectares (average 3.0 hectares) • Causes – 100% arson Fortunately, the majority of these fires were small but could have been substantially bigger

23. Challenges Experienced i.r.o. Fire Risk There are a number of challenges regarding new landowners that need to be overcome to ensure future wealth creation • Lack of knowledge about their responsibilities as landowners • Lack of specific knowledge of: NVFFA, role of FPAs & FDI • Conflict within communities - forestry vs. cattle • Unable to take out fire insurance (non- compliance with NVFFA or warranties required by insurers) • Reluctance to become members of FPAs Above all – lack of fire fighting ability in terms of training and infrastructure

24. Possible Solutions It is imperative that new landowners play an active role in preventing and fighting forest fires. This can be achieved through, amongst other things …… • Ensuring that they are made aware of their responsibilities in terms of the NVFFA & have knowledge of the FDI • Ensuring that they become members of FPAs (Govt support) • Ensuring that they receive fire fighting training • Assisting new landowners to protect their assets (e.g. funding for basic fire-fighting equipment and establishment of tailor made fire insurance scheme – National Agric. Insurance Prog.) Government and the Industry must both play a role

25. Section 5 Conclusion

26. Conclusion 1 The South African Forestry Industry is determined to be proactive in its efforts to ensure that land reform in the Sector has a successful outcome in terms of continued sustainable roundwood production through, amongst other things…. • Assisting new landowners with access to financial resources and markets • Provision of skills to enable them to run their new businesses • Assisting new landowners to protect their assets (i.e. against pests, diseases and most importantly of all, fire It is in ALL our interests that we succeed in doing this

27. Conclusion 2 It is imperative that we succeed in these endeavours because if we fail….. Eish! We’ll end up seeing this!

28. FSA Contributors Paulpietersburg Timbers  WS Treated Timbers

29. CONTACT INFORMATION Name: Roger Godsmark Tel: 082 805 7123 Email: forest@global.co.za www.forestry.co.za

30. Image: Sappi Image: Sappi www.forestry.co.za | www.forestryexplained.co.za