Read the full transcript of the Minister of Mineral Resources’ 2012 Budget Vote Speech delivered on 10 May 2012 in the National Assembly here. Sections directly affecting environmental rights have been highlighted in bold by the CER.

“Honourable Chairperson,
Deputy Minister Oliphant,
Honourable Fred Gona, Chairperson of the Portfolio Committee,
Honourable Members,

May I begin by acknowledging the presence, in the public gallery, of 21 girl learners from disadvantaged communities. They, Honourable members, are beneficiaries of the Ministerial programme, supported by the mining industry; who are studying at various tertiary institutions.

We stand at the cusp of a new era in South Africa – one which sees, so clearly now, the resurgence of mining as a central force.

I am therefore honoured to present the budget of the department that is responsible for a sector so critical to our country’s future. The fact is that the African National Congress has placed the mineral and energy complex right at the centre of its socio economic and political agenda. This is an appropriately far-sighted step as the organisation and movement I represent marks its centenary, committed as it is with even more vigour to change the lives of our people for the better.

We are, indeed, living in a season of marking centuries! Only a few years ago, our country’s modern and large-scale mining industry itself celebrated its centenary. We were able to take pride in the progress made, despite some debilitating policies and practices rooted in history. This of course reminds us of another century, one we noted two years ago without celebration. It began with the formation of the old Union of South Africa in 1910. It was plagued from the outset by racist policies which rejected blacks in all walks of life until the people, under President Nelson Mandela, changed the course of our history in 1994.

But, over those decades, the nation inexorably grew economically despite the ravages of apartheid. We have thrown off injustice and strengthened our economy – and in doing such things we have shown our true greatness as a nation, for the entire world to see. The resulting unity of spirit, rooted in our diversity, is what gives us our real strength and drives us today in an advanced economy characterised by features of both the developed and underdeveloped worlds.

Budget allocation for 2012/2013

Today, we are tabling a budget of R1, 169 billion for the 2012/2013 financial year which represents an increase of R130 million from the previous budget of R1, 039 billion. This increase is largely earmarked for research and development in the minerals and mining industry through Mintek and the Council for Geoscience.

The budget is allocated as follows: R239 million for Administration, R154 million for Mine Health and Safety, R180 million for Mineral Regulation while a further R596 million is allocated to Mineral Policy and Promotion. Included in these figures is an amount of R560 million allocated for transfers and subsidies to departmental agencies, public and private enterprises. My department will continue to manage this allocation in line with good financial management principles as prescribed by the Public Finance Management Act (PFMA).

In the same spirit I am pleased to report that my department utilised 99.1 % of its allocated budget for the 2011/12 financial year. We have developed clearly targeted action plans to address matters raised in the audit of the previous financial year.

In response to the call by the President with regard to tightening Supply Chain Management Practices (SCM), the department has begun reviewing its procurement policies and procedures to ensure that the acquisition of goods and services continues to be done in a manner that is fair, equitable, transparent, competitive as well as cost effective. Furthermore, the department has a process in place where annually all SCM practitioners sign a code of conduct. All Bid Committees have been appointed and are functioning effectively. The department has already begun the practice of vetting all SCM officials.

Underpinning it all is the fact that in 2011 the mining industry contributed 9.6 %to our country’s Gross domestic product (GDP), more than 12 % to total fixed capital formation, more than 35 % to our total export revenue and employed 2.9 % of the country’s economically active population, which currently stands at more than half a million direct jobs.

Furthermore, the sector contributes significantly to the country’s corporate tax receipts. It is important to note that more than 60 % of the country’s energy and more than 90 % of electricity generation is derived from activities associated with mining.

We are tabling this budget at a time when, influenced by our mining sector strategy, which is a product of the tripartism of Mining Industry Growth Development Employment Task Team (MIGDETT), we have an historic opportunity to rekindle the role of the mineral and energy complex in our economy in a quest to eliminate the evil triplets of poverty, unemployment and inequality which are stubbornly refusing to disappear from our landscape almost two decades after 1994.

The urgency of ensuring that we take advantage of the next wave of the commodities boom which will surely come was underscored when President Jacob Zuma announced massive infrastructure plans in his State of the Nation address. The projects promise solid progress ahead for our nation.

We are committed to working together with other state institutions on action plans to optimise the sector’s extractive capacity, attraction of investment as well as maximising mining’s job creation potential. The availability of more rail, port and water infrastructure necessary for mining will raise the level of mining, resulting in job creation and economic development, in various commodities including iron and manganese ore in the Northern Cape and coal from the Witbank and Waterberg coalfields in Mpumalanga and Limpopo respectively.

My department will by end of July 2012 release the Coal Resources and Reserves Study which is being led by the Council for Geoscience which reveals that the Waterberg region hosts a significant share of our country’s remaining coal reserves. This is the first comprehensive assessment of South African coal resources and reserves since 1987.

The Mineral and Petroleum Resources Development Act (MPRDA)

The promulgation of the MPRDA in 2004 introduced a policy of equal access to South Africa’s mineral resources which was previously the exclusive preserve of one racial group. The democratic mineral dispensation introduced the policy of socio-economic responsibility, which was to be achieved through the application of black economic empowerment policy by ensuring that the historically disadvantaged South Africans are brought into the mainstream of mining. However, challenges experienced in the implementation of these policies resulted in the need to review both the MPRDA. The objectives of the review are to:

• provide for a detailed consultation process,
• support the beneficiation strategy,
• streamline the licensing process to avoid delays and inefficiencies,
• provide for enhanced punitive measures,
• improve the current construct of the Act and to remove ambiguities, and provide clarity on the mining of associated minerals.

The review of the Act however, does not seek to introduce any major policy shifts in respect of exploration and exploitation of South Africa’s mineral resources. Accordingly, in our efforts of harmonising our legislation, the creation of synergies between the MPRDA and the MHSA becomes pivotal in ensuring that we create regulatory alignment.

Mineral Regulation

South African Mineral Resources Administration (SAMRAD)

Last year we launched our flagship online mining licence application system, SAMRAD. I am pleased to report that after initial teething problems associated with implementing a ground breaking system we have now entered a stage where system is rapidly gaining ground.

To date, we have well over 3 500 applications having been successfully lodged remotely through the department’s website into a system designed to ensure that we achieve transparency, reduce the margin of error and ensure a consistent systematic approach to the evaluation and eventual decisions regarding the awarding of rights.

Honourable Members will recall that on this occasion, last year, we reported on a process of cleaning up our data with the intention of ensuring that we migrate it into the new system. This has now been done. Working together with the mining industry, we are now giving priority to processing legitimate old order rights applications that are our in our system. We are committed to ensuring that these conversions yield positive results.

The department will continue to search for ways to upgrade the system to ensure that we remain an attractive and competitive mining jurisdiction. These improvements will include amongst others, the ability of the system to allow users ultimately to lodge various categories of reports online.

Integrated licensing system

A fragmented regulatory and mining licensing system has long been identified as one of the impediments to investments and therefore the competitiveness of the South African mining industry. The current timeframes for obtaining a mining right, water use licence and an environmental authorisation are not aligned, which results in prolonged processes and unnecessary delays.

As a result the Department of Mineral Resources (DMR), and the Departments of Environment and Water Affairs are currently reviewing the regulatory framework in an effort to put in place an integrated and streamlined licensing system which will not have a negative impact on the timeframes.

It is envisaged that the streamlined licensing process will ensure compliance by right holders with the various pieces of legislation, create certainty in the regulatory framework, expedite the licensing process and ultimately strengthen the constitutional imperative of security of tenure. This is in keeping with the principles of co-operative governance which dictate that government departments streamline their processes to promote seamless compliance with all relevant and applicable legislation.

Over and above this, I am pleased to announce that a task team reporting directly to the Minister of Water and Environmental Affairs and myself will deal with the issues that we have just outlined.

Honourable members would recall that we had extended the moratorium in Mpumalanga due to the complex nature of environmental challenges in that province. This culminated in over 41 Rights that are located in Wakkerstroom and Chrissiesmeer being identified as those belonging to the category of environmentally sensitive areas. Consequently we have taken action to prohibit mining within these areas.

The Pot – Auctioning of Rights

At the Mining Indaba I announced measures we intend taking to address the issue of the rights that are either being revoked or are lapsing. In February this year, I published a notice in the Government Gazette inviting submissions with regard to our intention to introduce a new system in the auctioning of rights.

I would like to thank all those who have made representations which, I must add, were not opposed to the system, but were instead offering suggestions on how we can address the technical aspects of the process itself.

After due consideration, I have decided to issue a proclamation in the Government Gazette which will invite applications on revoked or lapsed rights. In this regard, rules that are aligned with the MPRDA will be clearly spelt out in the Gazette. The first round of bidding would take place before the end of June 2012.

Litigation cases and its impact on transformation

Whilst reaping the fruits of transformation brought about by the MPRDA, as a department we are concerned that the recent court decision with regard to the matter certain litigation matters., which we are appealing, will have unintended consequences of reversing the gains of transformation in the mining industry. We have a historic obligation to do everything in our power to ensure that transformation and competitiveness of the sector are not compromised.

Transformation

Mining Charter

We call on the mining industry to implement fully all the provisions contained in the scorecard of the Mining Charter. Audits that were conducted by my department have revealed that the level of compliance is not what it should be. Such as amongst others:

• Low levels of implementation of Employment Equity by some mining companies.
• Low level of women representation at senior management level especially in decision making structures.
• Fronting especially by women who do it on behalf of men.
• Companies that change approved Social Labour Plans (SLPs) without appropriate consent from the department and without consulting communities.
• Suppliers of capital goods to the mining industry are mostly reluctant to transform and transfer skills to the Black Economic Empowerment (BEE) entities.
• Rampant use of expired BEE verification certificates and fronting.

Procurement

Honourable members! Procurement is one of the critical pillars of the Mining Charter. In this regard, I am concerned about the manner in which the entire procurement value chain is being handled in the mining industry. It is disturbing that procurement benefits are being reduced for BEE entities that are limited to mundane and peripheral issues such as catering, cleaning and gardening services. And these entities are excluded from sustainable core activities such as capital goods, services (such as transport) as well as consumable goods.

Working together with the mining industry, we have an historic obligation to ensure that the historically disadvantaged South Africans play a key role in this regard.

SLP

Social Labour Plans are an essential instrument in the hands of the democratic state to ensure that communities benefit from mining operations.

It is an area where we have identified gaps in the proper alignment of identified projects with Integrated Development Plan (IDPs) and consultation with communities.

Sadly this is one of the areas that constitute conflict between communities and mining companies

I therefore call on the mining industry to embrace and implement these imperatives without equivocation as they will create harmony between the mining industry and communities.

We are keen to work with the mining industry in circumstances where voluntary compliance is both a moral and an ethical issue. This should be the case as all the mining companies profess to embrace the King III Code on Corporate Governance whose chapter six enjoins mining companies to comply with the law.

Rehabilitation

My department continues with the project to rehabilitate derelict and ownerless mines. Working together with Mintek we have reached agreements with communities on the implementation of the Heuningvlei project whose scope has been finalised. Taking this into account and building on the experience gained, projects for upcoming activities are expected to be concluded before the expiry of the current three year cycle.

In the year 2011/12, a total of 115 temporary jobs were created in the Northern Cape. It is anticipated that during 2012/13 there will be a further 260 temporary jobs, to include the and Limpopo Provinces, with the bulk of the jobs still being created in the Northern Cape.

My department has secured the services of an actuary to conduct the valuation of the liability associated with Derelict and Ownerless Mines as well as providing the necessary cash flow requirements for successful implementation of the programme. The work is almost completed and a report will be ready by the end of this month. We believe that this work will go a long way in informing our implementation plan and resource requirements going forward as well as improving the overall approach towards rehabilitation.

We will do this as we tackle the practice whereby some major companies are prone to selling off assets to junior mining companies which have huge environmental liabilities.

Beneficiation

In July last year, Cabinet adopted the beneficiation strategy which is central to our bid to ensure that the mineral and energy complex yields concrete benefits to our country and its people. It includes the overall toolbox of interventions at the government’s disposal in support of value addition to minerals extracted in South Africa. We are currently in the process of fine tuning these tools for practical application in the industry. This will take the form of an implementation plan with clear actions for the identified commodity groups.

It will, however, align the Act with the recently approved beneficiation policy to ensure that the mining industry contributes to local value addition by making available the requisite mineral inputs to the local beneficiators. Working together with our State Owned entities such as Mintek and the Regulator, we are steaming ahead with various programmes to give effect to the Cabinet approved beneficiation strategy

In this regard, we have to continually seek, amongst others, that minerals such as platinum are able to find new opportunities and markets other than the traditional catalytic convertor market. We therefore welcome Anglo American Platinum’s promotion of the centuries-old fuel technology, whose fuel cell locomotive was launched in Rustenburg yesterday. It was a pleasure to see this cutting-edge, green technology being rolled out in such a promising direction – one which is of special interest to mining.

This will include initiatives such as underground coal gasification in a bid to extract maximum value from our coal resources.

Beneficiation initiatives

We are also endowed with semi-precious and precious stones which we need to use to reconfigure the racial patterns to of the jewellery industry. This, amongst others, includes jewellery fabrication which seeks to increase the beneficiation thus leveraging maximum value from our mineral resources.

This value addition activity has the potential to create a new cadre of skilled entrepreneurs who will be real players in the industry, working together with the Department of Higher Education and Training through MINTEK and Further Education and Training (FET) colleges. My department plans to host a Jewellery Summit sometime this year, to engage stakeholders on how best to build on this window of opportunity.

Additionally, my department will work through the State Diamond Trader to ensure that HDSAs become part of the mainstream and contribute to the economic growth and job creation. We want to revisit the model that involves the State Diamond Trader and we recognise the shortcomings inherent in the current configuration. We will continue to search for ways to make it more efficient and enable it to carry out the mission for which it was founded.

In the meantime, the South African Diamond and Precious Metals Regulator (SADPMR) will strive to ensure that the historically disadvantaged South Africans benefit and utilise the licences for which they have been awarded. This will be done whilst tackling the rampant acts of fronting prevalent in this important area.

In the same vein, the Kimberley Process (KP) has elected South Africa as deputy chairperson of the process during the year 2012 and we will assume the chair in 2013. As founder members we accepted this honour as it coincides with the 10th anniversary of this initiative founded in the modest Tabernacle Church in Kimberley. This occasion as Chair gives us the opportunity to review the statutes and other founding documents in a bid to ensure that we meet the current challenges facing diamonds industry.

SOMCO

Subsequent to the Cabinet’s decision to establish a state owned mining company and the endorsement of the African Exploration Mining and Finance Corporation (AEMFC) to operate as a nucleus for this entity, Cabinet further approved the model and the hiving off of African Exploration Mining and Finance Corporation from the Central Energy Fund’s Group of Companies.

My department is working with the Department of Energy, the Central Energy Fund, the AEMFC itself, as well as the National Treasury to give effect to this decision so that the AEMFC can operate as a stand-alone public entity.

Honourable members you will recall that in the last Budget speech we announced that AEMFC had commenced with mining activities at its Vlakfontein mine and signed an offtake agreement with Eskom. Thus far the mine has produced 681 458 tonnes and sold over 468 554 tonnes of coal.

This crucial entity of the democratic state is about to undertake a second project which is now in the post-feasibility phase, and will, upon operation, produce 4.6 million tonnes of coal per annum over 33 years, creating almost 1 000 jobs.

Shale gas

Following Cabinet’s decision last year to investigate the feasibility of shale gas in our country, and our subsequent decision to set up a task team to engage with this issue, we will by end of July table the report to cabinet for consideration.

Mine health and safety

The health and safety of mine workers in the mining industry remain of utmost importance to the Department of Mineral Resources. Workers in this industry have endured harsh working conditions ever since the birth of mining in South Africa, including living in overcrowded single-sex hostels, poor health and safety measures and the indignity of being separated from their loved ones for inordinate periods of time as a result of the ridiculous system of separate development.

Even to this day, 18 years after 1994, this sector’s commitment to the health and safety of both the workers and communities resembles a curate’s egg – good in parts, which means lacking overall. This must change. The inevitability of death, injury and disease must be rooted out. In addressing poor health and safety issues at mines, we have identified the need to review the Mine Health and Safety Act. This review will strengthen enforcement provisions, reinforce penalties and ensure alignment and harmonisation with the Mineral and Petroleum Resources Development Act, 2002 (MPRDA).

While we remain ceased with these challenges, we however recognise some improvement in the health and safety since intensifying the monitoring and enforcement measures. The enforcement measures have resulted in an 80% reduction in the number of deaths, from 15 in January to 3 during April 2012. This is the lowest ever recorded compared with other historical monthly figures which were generally more than 11 deaths per month. It is also commendable and encouraging to note that some of the mining companies are now going for more than 6 to 18 months without fatalities. Amongst others, these are Lonmin, DRD, Coal of Africa, Kumba, Pan African Resources and Petra Diamonds.

Hon members, whilst we recognise improvement, we still experienced in 2011 a total of 123 fatalities, compared to 127 in 2010, which translates to about a 3% reduction. This year (2012) to date, figures show that fatalities in the mining industry have dropped by 9% – from 43 in the same period in 2011- to 39 in 2012.The number of mine injuries has reduced by 35% from 1 024 in 2011 to 668 in 2012. Major contributors to the accidents are gold and platinum mines. I call upon the mining industry to once more commit and internalise the to the value system of zero harm.

I am concerned with the safety of women in the mining industry. Mining companies are urged to implement measures aimed at protecting women miners. In this regard I commend the NUM for championing the just cause of safety of women miners.

As the DMR, we remain determined to apply Section 54 to ensure compliance, taking into account the self-regulatory framework of the mining industry.

I want to state categorically that it is mischievous to regard section 54 as the only contributor to the loss of production. This flies in the face of the reality that mine operational challenges, can contribute significantly to low production.

We have agreed with stakeholders to set up a task team comprising all relevant sector stakeholders to investigate the concerns raised in respect of the application of Section 54. The task team has finalised its investigation and has made recommendations for consideration by the Minister of Mineral Resources and other Mining Industry Growth, Development and Employment Task Team (MIGDETT) principals.

As I had promised last year, we have split the North West regional office into two separate offices. The split has resulted in the reduction of fatalities and injuries by 43% and 51% respectively in the Rustenburg area.

In November 2011, the Mine Health and Safety Council hosted a summit focusing on the attainment of the Occupational Health and Safety milestones as set out in 2003, which include the eradication of Silicosis, Noise Induced Hearing Loss, TB and HIV/AIDS. Silicosis continues to be the cause of premature retirement and death at our mines while tuberculosis (TB), exacerbated by HIV/AIDS, has proven to be a serious challenge for the industry. Noise Induced Hearing Loss (NIHL), resulting from exposure to high levels of noise in working places, is also a significant health hazard.

The commitments made during the summit on TB and HIV/AIDS were also informed by the National Institute of Occupational Health (NIOH) report which was commissioned by the Department of Mineral Resources.

Also, during the 2011 summit a commitment was also made to implement the Culture Transformation Framework (CTF). The framework pillars include the review of bonus incentives to ensure that zero harm is prioritised ahead of production; mine owners will lead by example in walking the zero harm talk; and the adoption of technology and leading practice for eliminating health and safety risks to mine employees.

The stakeholders are also committed to establish a Centre of Excellence to do research, capacity building and facilitate research implementation. Stakeholders committed themselves to the aforementioned in order to improve the industry’s Health & Safety record.

The department recently participated in South Africa’s 2012 world TB Day commemoration in Carletonville which was also addressed by Deputy President Motlanthe. I would like to commend Gold Fields for supporting this programme and call on other mining companies to do likewise.

There is still a great need to improve on the current skills capacity within the mining sector. To this end, the department is collaborating with the Department of Higher Education and Training (DHET) and our social partners through the Mining Qualifications Authority (MQA) to improve on skills development.

Some of the programmes include artisan development; improving women’s participation in mining; developing black managers, fostering skills required to support Beneficiation Strategy; issuing bursaries annually at public Higher Education and Training institutions with mining and mineral related faculties; training Health and Safety Reps and Shop Stewards over five years using accredited institutions; and exploring ways of improving the percentage pass rate for various certificates of competency.

Although there has been significant progress in ensuring that the appropriate measures are taken to eliminate illegal mining, the problem is still of great concern. The department will continue collaborating with the relevant law enforcement agencies and social partners to ensure that there is a national effort to combat illegal activities.

Conclusion

As I present this Budget, I would stress that we are working round the clock to build the capacity that is necessary in this department in all areas, including in the vital legal section which is involved so regularly and exhaustively in litigation. We are also building up our IT systems to improve efficiency and effectiveness of the department.

We are working on developing partnerships, between government and the private sector, as well as with communities and civil society generally. We are looking forward to participating in the Mining Lekgotla in collaboration with the Chamber of Mines in our drive to ensure that South Africa remains the preferred mining destination in Africa. It is only on a basis of sound partnership that our country, with mining confirmed in a leading role, will ensure success in the centuries to come.

Finally I want to thank the staff of the DMR, so ably led by the Director General, who has taken the proverbial bull by the horns and has acquitted himself very well in his new role. The same goes for the Deputy Minister for his leadership and contribution to the second Budget. It is this same commendable spirit that must characterise the work of the department as we proceed to build a mining dispensation that is in harmony with the environment – and with communities, with whom we constantly seek to engage in consultation.

Hon members, I Thank You.”

Read the full transcript of the Minister of Agriculture, Forestry and Fisheries’ 2012 Budget Vote Speech delivered on 3 May 2012 in the National Assembly here.

“Honourable Speaker;
Chairpersons of the Portfolio Committee and the Select Committee;
Honourable Deputy Minister;
Members of the National Assembly and the National Council of
Provinces;
MECs;
Former Agriculture Director-General, Mr Masiphula Mbongwa;
Ambassadors;
Captains of industry;
Winners of our national Female Entrepreneur Awards;
Leaders of political organisations, unions, NGOs, community organisations and faith-based Institutions;
Farmworkers, fisherfolk and community forestry organizations;
Students and leaders from our agricultural colleges and other training institutions;
Ladies and Gentlemen,

Our struggle icon and the father of our nation, Nelson Mandela, once said that: “We do not want freedom without bread, nor do we want bread without freedom. We must provide for all the fundamental rights and freedoms associated with a democratic society.” This means that we can neither divorce freedom from food, nor food from freedom. I thus implore all of us to re-commit ourselves to “Working together for food security.” This is the theme of today’s budget speech.

Our draft Food Security policy and Zero Hunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality amongst the masses of our people. We believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods.

The ‘right to food’ as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security.

We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food security status as a country. High food prices, food price volatility and food price hikes will be the greatest challenge to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices.

To curb these challenges, small holder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilizers. One family, one vegetable garden should be the mantra of each and every family in South Africa.

We will increase agro-processing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50 million will be allocated for the promotion of local agro-processing businesses. An equitable food security economy will improve access to markets for especially small holder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of Biofuels will also be a priority.

Food processing and agro-industries have provided jobs, demonstrating growth of over 25,000 agricultural jobs in the sector for the 3rd quarter of 2011. A further 6,000 agriculture related jobs were created in the 4th quarter of 2011, which is a year-on-year growth of 3%! This has brought the total employment in the sector to 630,000.

This is definitely a reflection of confidence in our agricultural sector, since job growth should be measured within the context of a sector which has been shedding jobs since the 1970s. We must continue building on this trend through employment on commercial and smallholder farms. We are cautiously optimistic when we say that we have curbed job losses in agriculture. Our community works programmes; working for fire, working for water and working for fisheries will increase our capacity to create jobs.

Notwithstanding the ongoing legal processes around Wallmart, which government has taken in order to protect our agro-processing industries and jobs, we are also working with the company to ensure that opportunities are maximised by their entry to the market. To this end we will be leading a delegation of farmers to Costa Rica to learn from Wallmart’s “direct-to-farm” procurement programme, which focuses on market access for smallholder farmers.

South Africa’s trade of both primary and processed agricultural products have grown from R10 billion exports in 1996 to about R48 billion in 2011. Our wine exports are soaring notwithstanding the recent global economic slowdown.

We are now exporting three times more wine than we did a decade ago. Exports of fish and fish products have rapidly expanded in China and Cameroon. Timber and forestry products are gaining ground in China and Indonesia. We are exporting more and more maize to Zimbabwe.

Our export markets have undergone structural changes from 2001 to 2011 with new destinations in Asia, the Middle East, and North America. Exports to South Korea have increased from 2 to 3%; China from 1 to 3%; and the United Arab Emirates from 1 to 3% of our agri-food export basketry. Exports to Zimbabwe have increased from 2 to 8%, and to Mexico from 0 to 5%.

Despite our success story as a country which is a net exporter of food, international trade has yet to include more black farmers in the equation. The Branch: Economic Development, Trade and Marketing is allocated about R200 million to support international trade, marketing, agroprocessing and cooperative development.

Our department is positioning itself to participate in a meaningful way in BRICS. The department will open offices in Russia, India, and Brazil, in addition to the one which is already operating in China.

I wish to specifically thank all the stakeholders who made it possible for us to have agriculture included in the climate change text at the Conference of the Parties (CoP17). South Africa made three proposals for inclusion into the final text, which relate to adaptation issues, mitigation actions in the sector, and a program of work under Reduction in Emissions, De-forestation and Degradation (REDD+) which considers agriculture as one of the key drivers of deforestation.

The Department has gazetted the AgriBEE Charter and the Draft Sector Codes for public comment. I would like to encourage all South Africans to make their inputs to the AgriBEE process by the 26th of May 2012.

The restructuring of the former Branch of Marine and Coastal Management (MCM) corresponds with international trends which recognize fisheries as an economic activity rather than a purely environmental or biodiversity matter. Government has also expanded the mandate for fisheries management through the inclusion of fresh water and inland fisheries, as well as aquaculture, to our existing responsibilities.

We will gradually establish offices of the Fisheries branch in other coastal and inland provinces. These are economic decisions which contribute to employment creation and poverty alleviation!

The Small Scale Fisheries Policy will be finalized and implemented this year. The policy seeks to address imbalances of the past, and ensure that small scale fishers are accommodated and properly managed. For the first time fishing rights will be allocated on a group rather than an individual basis.

The department has entered into a Service Level Agreement with the South African Navy to manage our fleet of 4 patrol vessels and 3 research vessels for a period of one year, while we consider our various options regarding the long term management of these vessels.

Regrettably, following extensive allegations of maladministration in the Fisheries Branch, and after extensive consultations with the Department of Justice and Constitutional Development and the Presidency, we will be requesting the Special Investigating Unit to look into all tenders awarded by the Branch, as a preparatory step to the Committee of Enquiry which I have previously announced.

This year we successfully hosted the 6th Session of the United Nations Food and Agriculture Organization (FAO) Committee on Fisheries Sub-Committee on Aquaculture. This sector has shown increased production at an annual average of 11,6%. The Branch: Fisheries management will get R400,0 million this year to oversee the management of our fishing industry, including R253,0 million for the Marine Living Resources Fund.

Honourable Members, the Department is the custodian of South Africa’s forest resources which covers over 40 million hectares of the country’s land surface area. The forest sector employs about 201 025 workers. It provides about 77 000 direct jobs and 30 000 indirect jobs. It provides livelihood support to 2,3 million people in our rural areas. Downstream activities in the sector employ about 52, 400 direct and indirect jobs. Another 11 000 workers are employed in miscellaneous jobs in the sector.

The Forestry and Natural Resources Management Branch of the Department will continue to support and conduct research initiatives and programmes to gain a better understanding on the processes behind climate change, vulnerability and eco-friendly agricultural practices. The Branch: Forestry and Natural Resources Management will get R1.2 billion during this financial year to manage our forests and natural resources.

Our country has been plagued by natural disasters and animal diseases. Between December 2010 and January 2011, we had devastating floods in Limpopo, Free State, North West, Gauteng, Eastern Cape and Northern Cape Provinces. We have begun the process of implementing the Flood Assistance Scheme, with its emphasis on infrastructure repairs. An amount of more than R990m has been made available through the MTEF period until 2014/15 as part of the flood assistance scheme.

Animal disease outbreaks such as Rift valley fever, Newcastle disease, avian flu, foot-and-mouth disease, African Horse Sickness and African swine fever have been serious challenges to our industry. Our department will have to improve on its capacity to deal with such disasters as they impact adversely on the rural economy. R954 million is allocated for plant and animal production, including inspection and laboratory services; R935 million for agricultural research which represents a substantial increase over the previous year’s allocation.

Furthermore, R868 million is allocated to food security initiatives, and R349 million for extension support services including new farmer development support.

Our dedicated “Strategic Integrated Project” eleven on agro-logistics and rural infrastructure, as part of the Presidential Infrastructure Coordinating Commission, include plans for the following:
• Fresh produce marketing depots for smallholder farmers
• Production infrastructure for crops and animals
• The revitalisation of various irrigation schemes, including the Vaalharts-Taung irrigation scheme
• The refurbishment and upgrading of the agricultural colleges, and
• Various projects such as grain storage facilities and rehabilitated irrigation schemes in the former homelands, fencing including border fences and animal quarantine facilities at our borders.

These infrastructure projects will be implemented in a phased approach.

In addition, the rail freight network will be made more easily and cheaply available for the transport of bulk agriculture, forestry and fisheries commodities. To support these initiatives, the Comprehensive Agricultural Support Programme (CASP) is allocated R1.5 billion, of which over R52,5 million will be used for infrastructure at the agricultural colleges, R322 million for the extension recovery plan, R762 million for infrastructure (mostly on-farm), and R398 million for flood damaged infrastructure in disaster areas.

In addition, the Land Care allocation for the coming year is R115 million, while the Ilima/Letsema programme gets a total of R415 million.

In keeping with our theme of “Working together for food security,” we hosted our first Delivery Forum during March this year. The Delivery Forum is an ideal platform to cement stakeholder relationships in pursuit of our developmental objectives. It will emphasise strong coordination and communication to ensure that things get done. Improving the flow of information and ideas between government and the private sector will enhance our ability to identify new and better opportunities for investment.

We thank the agriculture, forestry and fisheries sector in general and each individual in particular, for their selfless support. Our sector has become a significant role-player on the African continent. Our task would be but half done if we do not take up the cudgels to help South Africa become a country with total food security for all.

Our country has to play its rightful role in creating prosperity, jobs and equality for its people.

Your role, colleagues and friends, is to once again look deep into your work, and your hearts, and ask what more you can do to contribute to making South Africa a better country for all. Together, we can do more. Together, we can work towards food security for all.

Honourable members, the total budget allocated to the department for this financial year is R5.8 billion. We would like this house to endorse this budget.

In conclusion Speaker, I wish to thank the Deputy Minister, the MECs, the Director-General and the department, our SOEs and the staff of the Ministry for their diligence and the commitment which they displayed during the past year in executing the mandate of the department.

I thank you.”

Read the full transcript of the National Assembly address delivered by the DA’s spokesperson on Water and Environmental Affairs, Gareth Morgan MP, on 2 May 2012 at the 2012 Budget Vote for the Department of Environmental Affairs here.

“Chairperson, Honourable Minister, Honourable Members

This vote occurs less than two months away from the Rio+20 summit, which marks the 20 year anniversary of the Rio Earth Summit, and ten years since the World Summit on Sustainable Development held in Johannesburg in 2002. It also occurs less than six months after COP17 which was successfully hosted in Durban last year.  The world is now taking stock again of its progress towards sustainable development, and so is South Africa.

New to the agenda is the notion of the Green Economy. It is a contested term. In South Africa government’s appears to take the view that the green economy is a subcomponent of the economy. But this is a perversion if one considers a more holistic definition, that being that the economy, the whole economy, is a component of the ecosystem in which it resides. In other words we should consider the whole economy as the Green Economy.

UNEP has developed a definition of a green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. UNEP goes on to say that a green economy is one whose growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency and prevent the loss of biodiversity and ecosystem services. This development path should maintain and where necessary rebuild natural capital as a critical economic asset and source of public benefits, especially for poor people whose livelihoods depend strongly on nature.

It is my contention that policy coherence and transversal management across government departments and all spheres of government is critical for meeting sustainable development goals. Sustainable development and the green economy cannot simply be the domain of the Department of Environmental Affairs. It needs to be integrated across government. This Department has the task of ensuring that coherence is attained.

During the last year Cabinet approved the White Paper on Climate Change, the culmination of about six years of consultation. It is a convincing policy document, and is a credit to this Department which drove the process. One only needs to read this document to see how incredibly challenging the transition to a low carbon future will be. At the same time, it is evident that a reading of the White Paper alerts one to policy incoherence in government. For example, reading the White Paper in conjunction with the IRP2 strategy, one sees that the energy sector has already appropriated more than 50% of the carbon space for itself over the next 20 years, something which the White Paper does not envisage as a feasible scenario if we are to achieve the deviation against business as usual emissions of 34% by 2020 and 42% by 2025.

The New Growth Path, which very obviously deals with the green economy as a sub-component of the economy, and the President’s State of the Nation Address lean towards a promotion of extractive industries in support of the export market and the energy sector. The President’s speech focused heavily on the delivering the infrastructure requirements to support extractive industries. This does not necessarily point to contradictions in policy positions, but it does need to be acknowledged that the extractive industries are hugely energy and carbon intensive. Yes, we must mine, but to what extent is the push to mine being factored into the sustainable development framework? And to what extent, and up to what point, can this particular development path be allowed to use high potential soils, biodiversity, water and carbon space?

It comes down to having effective planning instruments, and mechanisms to monitor key environmental indicators, and their subsequent changes. I commend the Minister and her Department for finalising the National Strategy for Sustainable Development and Action Plan last year. This strategy very actively acknowledges the need for a long term planning horizon. But the challenge is in implementation.  The NSSD and the White Paper on Climate Change must not sit alongside other government policies and programmes. It is other government policies and programmes that need to find space within the context set by the NSSD and the White Paper.

Getting the balance right in environmental management is important. Good developments, including infrastructure, that creates jobs and improve livelihoods of our people need relatively quick environmental authorisations. In this regard instruments to improve efficiency and effectiveness of environmental impact assessment systems across the country are required. The Department has correctly identified the need for greater utilisation of Environmental Management Frameworks, particularly for areas facing high development pressures. Ideally these EMFs need to be integrated with the IDPs of municipalities. The ideal situation that we need to achieve is to be able to say to developers, whether they be the private sector or government, that this is where a particular activity is best suited; this is the carrying capacity of a particular area, and this area, for reasons of sensitive biodiversity or threatened water courses, is out of bounds for development. In this regard the Department requires improved GIS systems to identify sensitive environments.

Mining remains the elephant in the room. For too long now the Department of Mineral Resources has regarded its principal legislation, the MPRDA has being able to trump other legislation. One only needs to fly over the pock marked terrain of Mpumalanga to see what poor spatial planning and lack of proper authorisation procedures does to the environment and the people affected. The Department of Mineral Resources has for several years now foisted unwanted mines on many local communities, with little or no meaningful consultation. So often, communities with little access to resources are forced to take on multimillion Rand mining houses. In this regard I pay tribute to the community activists from Piketberg to Mtunzini, and from Chrissiesmeer to Lephalale, who champion good environmental governance when it comes to mining authorisations. I also congratulate the good men and women of the Department of Environmental Affairs who have worked for years to improve coordination mechanisms between the Departments of Mineral Resources, Environmental Affairs and Water Affairs.

Some positive news in the development of mining law is that the Constitutional Court recently upheld the verdict of the SCA in the case brought by the City of Cape Town versus Maccsands.  Simply put, where mining is not permitted by a zoning scheme the holder of a mining right cannot start to mine. It is important that municipalities and provinces all around South Africa take note of this verdict. Proper local planning and use of zoning laws should determine where mining is permitted. I have long held the view that the Mining Minister should not be able to override local plans and IDPs. This verdict will have major consequences for shale gas exploration applications which have footprints as large as 30 000 square kilometres, bigger than entire municipalities. We require municipal councils and provincial governments to all become more involved in mining authorisations from now on.

The scourge of rhino poaching is a national tragedy. A species brought back from extinction in the 1970s is now under assault from criminal syndicates. As of the end of April, 199 rhinos had been killed by poachers. At this rate 600 rhinos will be killed this year, up from 448 in 2011, a 34% increase on last year. And the reality is we don’t know what will happen to the rate in the future. If poaching continues to escalate in the manner that it escalated between 2007 and 2011, the overall rhino population will decline. That’s of course if we have a grip on what the actual number of rhinos in our parks are. If we have overestimated the rhino population then the decline may already have begun.

I am not one for throwing around emotive words, but the rhino poaching epidemic reached crisis levels some time ago. When armed individuals, mostly from Mozambique, enter the Kruger National Park, the jewel of our conservation crown, and kill our rhinos, already 119 dead this year and 252 last year, it is an assault on our sovereignty. It is pleasing that there are a high number of arrests, already 122 this year, but as the situation currently stands there will always be more poachers. The value of rhino horn is simply exorbitant, and the rewards of poaching currently outweigh the risks.  Yes there is more than can be done in terms of compliance and enforcement. I do not believe for example that enforcement in the Kruger National Park has truly reached the stage where authorities “own the night”, the period when most poaching occurs. Nor, considering the friendly fire shootings that resulted in the death of a police officer and park ranger on Saturday, are the efforts of the law enforcement agencies sufficiently coordinated.

Of course poaching occurs not only in government parks. Private rhino owners also suffer losses at the hands of poachers. The costs of protecting private rhinos are substantial, so these stakeholders are also relying on support from government agencies in cracking syndicates and catching poachers.

Another aspect that needs to improve is intelligence. Crime Intelligence and Defence Intelligence, along with park authorities, need to improve systems of information gathering and sharing. Arresting and prosecuting syndicate bosses will do more to disrupt poaching than prosecuting the grassroots poacher, as important as the latter is.

Are we winning the war on rhino poaching? The answer is almost certainly no. Have we exploited all available options? The answer is also no. I am not in favour of closing down debate on options to curb rhino poaching, nor do I believe there is a ‘silver bullet’ solution. As far as I am concerned all options must remain on the table. All options must however be subject to rigorous scrutiny, but time is running out for our rhinos and we are desperate for some meaningful successes in the war against poaching. Madam Minister, we look to you for your leadership on this matter.

Notwithstanding the difficulties we face, let me pay tribute to the men and women of South Africa who work tirelessly to protect our rhinos: the park rangers who endure the loneliness of the wilderness, the soldiers who patrol the border and the magistrates who sit in judgement of suspected poachers. But tribute must also go to the ordinary citizens of our country who keep the scourge of poaching firmly within the public discourse, who raise money for charities supporting rhinos, who rehabilitate orphaned rhinos, and who even go as far as appearing in court on behalf of their fellow citizens to ensure suspected poachers get no bail or are convicted with the strongest possible sentences, as in the case with the activists from OSCAP.

In closing, let me make a few general comments. The Department of Environmental Affairs is generally very well run. With regards to financial management it is perhaps the apex performer in the national government, under the careful and thoughtful guidance of DG, Nosipho Ngcaba. Madam Minister, you have been in the post for 18 months and have grasped well the complexities of the Department. I appreciate your leadership during COP17 and in the lead up thereto. I look forward to the same leadership in driving the sustainable development, green economy and climate change strategies going forward. I also thank the Chairperson of the Portfolio Committee, Advocate De Lange, for his guidance of the committee.

The challenges of environmental governance are immense. It is tempting to grow our economy at the expense of the environment and our natural capital but that would be unethical and irresponsible. It is far more challenging to grow our economy in a way that sustains and grows natural capital. It is the challenge that will define our future.”

Read the full transcript of the Minister of Water and Environmental Affairs’ 2012 Budget Vote Speech delivered on 2 May 2012 in the National Assembly here.

“Honourable Chairperson of this session;

Honourable Deputy Minister, Rejoice Mabudafhasi, MP;

Honourable Chairperson of the Portfolio Committee, Advocate Johnny de Lange, MP;

Honourable Members of the Portfolio Committee;

Honourable Members of Parliament;

Distinguished Chairpersons and Chief Executives of Public Entities;

Distinguished guests;

Ladies and gentlemen;

Introduction

I address this august gathering after we celebrated Freedom Day last week, a day that marks a significant and historic paradigm shift in the history of our country. On that day 18 years ago, South Africans elected not only a new democratic government, but by that act of placing a ballot paper in the ballot box, they pinned their hopes on this ANC government and we should never fail them and we should also never fail the legacy of Tata Mandela.

When the gates of Victor Verster Prison flung open, releasing Tata Mandela, he took those memorable first steps that symbolised the many steps we were to take as a people in our quest to move our country to a new era of sustainable development. His exemplary stature taught us to be selfless and dedicated in pursuit of the betterment of the lives of our people and the restoration of their dignity after many decades of humiliating and degrading apartheid laws.

His release from incarceration further symbolised the emergence of a paradigm where as a nation we recognised that development should benefits us today, whilst at the same time we should not deprive future generations access to the same resources and natural assets.

This year is special as it also marks the 16^th anniversary of our country’s Constitution, which gives full expression to our democratic ideals, substance and relevance to the work of the environment sector.

Since 1994, we have embarked on a journey to fulfill the rights enshrined in our constitution – to an environment conducive to health and well-being which is protected for the benefit of present and future generations.

These are some of the pillars on which sustainable development programmes of our department and sector are resting and have been our guiding principles in our national and international engagements.

COP 17 and Climate Change

Ladies and gentlemen, last year South Africa hosted and participated in the 17^th session of the Conference of the Parties to the UN Framework Convention on Climate Change and the 7^th Meeting of Parties to the Kyoto Protocol, in Durban. The final outcome was historic and precedent-setting.

This agreement significantly advances the global effort needed now to address the global climate change challenge. It sets a new long-term pathway for the development of a fair, ambitious and legally binding future multi-lateral and rules-based global climate change system which can balance climate and development imperatives.

It also ensures the fair participation of all countries, both developed and developing, in the increased global effort to reduce greenhouse gas emissions, now and in the future.

The success of COP 17 was due largely due to Team SA’s response to our clarion call last year for a partnership akin to the one during the 2010 Soccer World Cup.

We used COP 17 to host a very successful and cutting edge expo that  demonstrated South Africa’s approach, and real practical action in responding to climate change, it also acted as a forum for engagement and building partnerships. I am therefore proud to announce that from next year, the Environmental Sustainability Climate Change Response Expo will be hosted as an annual event.

Let me take this opportunity to express our appreciation to the various communities – youth, women, traditional authorities, business, academia, non-governmental organisations, media and Government Departments and entities – who worked with us in the preparation towards and engagement during the COP 17 and all its related activities.

Re a leboga bagaetsho!

Mabogo dinku aa thebana!

Working together we can do more

We went to the COP 17 negotiations, shortly after Cabinet’s approval of our National Climate Change Response Policy, which presents our country’s vision and strategic approach for achieving an effective climate change response, and a just transition to a climate resilient and lower carbon and job-creating economy and society.

Our priority for this year is to make significant strides in implementing the policy. In consultation with all stakeholders, we will co-ordinate a process to define South Africa’s desired emission reduction outcomes, based on an in-depth assessment of mitigation potential in key sectors, as well as an analysis of the mitigation contributions that each sector can make to the national and global effort.

We will also initiate a process to develop long term adaptation scenarios, to evaluate how changes in the climate may affect key climate – sensitive sectors, such as water, agriculture, forestry and biodiversity in South Africa, and identify adaptation strategies to prevent the undesirable consequences of climate change, and thereby increase South Africa’s resilience to climate change.

The ocean plays a significant role in the understanding climate, climate variability and the impact of the ocean on the infrastructure, economy, as well as the livelihoods of communities within coastal cities and towns.

Being surrounded by the Atlantic, Indian and Southern Oceans, presents South Africa with a unique opportunity and responsibility to use our understanding of ocean, weather and climate processes to achieve operational forecasts to ensure safe use of our waters. This will help to protect human life, our economy and also our marine biodiversity.

To address climate change mitigation strategies, the South African Weather Service’s Global Atmosphere Watch station at the Cape Point has in the past 32 years formed a crucial component of the global network that maintains long-term records on trace-gases and greenhouse gases in the atmosphere.

We are also developing monitoring and evaluation systems to ensure that we are able to track our progress in reducing emissions and building resilience.

Sustainable development and the road to Rio

As concerns for capacity of the earth’s resources to sustain the current unsustainable production and consumption patterns grow, the global efforts to reshape the sustainable development architecture to better respond to this challenge and the emerging multiple financial and economic challenge are becoming increasingly urgent.

Faced with the real threat of climate change impacts, sustainable development becomes more pertinent and significant from the South African and worldwide perspective.

Our strategic objective of ensuring that sustainable development remains central in our planning and execution was further enhanced last year with the approval of the National Strategy on Sustainable Development (NSSD) by Cabinet.

The NSSD sets out the country’s sustainable development priorities and actions over the next five years and puts us on a solid policy platform as we prepare for the RIO plus 20 negotiations in Brazil next month.

This Summit also marks the tenth anniversary of the World Summit on Sustainable Development which we hosted as South Africa. It was during this Summit that South Africa pushed for an action oriented outcome with a set of targets for sustainable development namely, the Johannesburg Plan of Implementation.

This Plan of Implementation provided a detailed course of action for the implementation of 1992 Agenda 21 and the Millenium Development Goals. Therefore, Rio plus 20 is not only about reviewing implementation of sustainable development over the past 20 years but is seen as a platform to address emerging challenges in implementing sustainable development over the next 20 years.

Rio plus 20 will address thematic areas like green economy within the context of sustainable development and poverty reduction and the reform of the international institutional framework supporting sustainable development globally.

We especially look forward to the global elaboration of a Green Economy in the context of sustainable development, and taking cue from that, we will chart the way forward for the environment sectors’ contribution to a just transition to a pro-poor and job creating green economy in South Africa.

The drafting of our country’s position for RIO plus 20 is therefore being conducted through an extensive multi-stakeholder process which includes participation of government, business, labour, local government and other relevant partners.

The Green Economy and Jobs

It is incumbent upon us to debunk the myth that environment management hinders development, by positioning the sector as a major contributor to job creation and the fight against poverty.

To quote the late great Wangari Maathai: “The environment and the economy are really both two sides of the same coin. You cannot sustain the economy if you don’t take care of the environment because we know that the resources that we use whether it is oil, energy, land … all of these are the basis in which development happens. And development is what we say generates a good economy and puts money in our pockets. If we cannot sustain the environment, we cannot sustain ourselves.” End quote.

The South African government has identified the green economy as one of the key elements in the new growth path as well as in the industrial policy action plan.

The transformation of our industries towards the building of a green economy has many facets. It is, in the main, about creating new labour absorbing industries that also mitigate impacts on the environment.

This green economy offers substantial opportunities for job creation and development in the environmental goods and services sector, particularly in biodiversity, waste and natural resource management services.

However, the skills required to realise the job potential in the sector are scarce and students with relevant qualifications are often unable to bridge the gap between education and employment requirements.

The incubation method, which we will utilise in the sector for the very first time, is a unique way to tackle the bridging of this gap.

Through the South African National Biodiversity Institute – SANBI- we will manage the process of placing a maximum of 800 unemployed school- leavers and graduates mostly from rural areas in biodiversity jobs for an incubation period of two and a half years.

SANBI will assist in ensuring that participants are mentored and receive relevant skills and experience to gain employability and access to permanent jobs in biodiversity and ecosystem management services.

We are aware that unlocking the substantial economic benefits of biodiversity is going to require a sizeable cohort of skilled South Africans.

For this reason we have mandated SANBI to pioneer a national capacity development programme for the entire biodiversity sector.

SANBI’s application to the jobs fund titled Catalysing Access to Employment and Job Creation in Ecosystem Management was approved by the Development Bank of Southern Africa to the tune of 300 million Rands.

Ladies and gentlemen, we recognise that a just global transition to a low-carbon, resource efficient and sustainable economy has the potential to create jobs across many sectors of the economy, and indeed we can become an engine of development.

To this end, over the past few months we began engagements with various youth formations and communities with the objective to create long-lasting strategic relationships that will contribute towards enterprise development and the creation of sustainable jobs throughout the country, with special focus on urban and rural development for the true and real advancement of a working green economy.

Next month as we celebrate Youth Month, we will roll-up our sleeves by launching the first phase of the countrywide green hubs with various satellite and regional operations.

Honourable Members, last year we committed to implementing an environment sector Green Economy implementation plan through a local and international partnership with green investments, supported by domestic funding from the National Treasury’s Green Fund, as well as international funding through bilateral cooperation programmes and multilateral facilities such as the World Bank Clean Technology Fund and the newly established Green Climate Fund.

It is envisaged that we will utilize this funding in a catalytic manner so as to attract new and additional investment, stimulate job creation and lay the foundations for South Africa’s transition to a low carbon job-creating and resource efficient growth path.

I am happy to announce that the National Treasury has made available 800 million Rands for the Green Fund over the next 2 financial years, which represents a critical resource mechanism to achieve a just transition to a low carbon, resource efficient and job creating green economy growth path in South Africa as envisaged by the new growth path, climate change and National Sustainable Development policies.

We have finalised processes with National Treasury and in this financial year will roll out the implementation of the Green Fund and have appointed the Development Bank of Southern Africa (DBSA) as an implementing agency for the green fund managed by a multi-stakeholder Management Committee chaired by the department.

The primary objective of the Green Fund is to provide catalytic finance for high quality, high impact green economy projects and mainstreaming activities which would not have been implemented without fiscal support.

The Green Fund and the activities it supports will be used to leverage additional funding through a targeted resource mobilisation plan, including from Overseas Development Assistance and donor funds relating to green economy and climate change priorities.

These would be pursued in the context of the national development priorities. A true working green economy is a lot more achievable through a patriotic and growing participation of various social partners.

Mabogo dinku a a thebana!

Working together we can do more

This is exemplified by our ongoing roll-out of amongst others the National Waste Management Strategy, continues to contribute to the creation of varied Industries that are deliberately structured to deliver sustainable livelihoods, as we forge ahead to become the real leader in the implementation of green life-styles.

Honourable Members, our various environmental programmes linked to the Expanded Public Works Programmes are rightfully well known for their ability to give the resources and dignity of work to previously unemployed people.

What is sometimes overlooked is the value of the work that is done.  For example, the CSIR has calculated that the value of the water saved through the clearing of invasive alien plants, which is the focus of our Working for Water programme – is put at 400 billion Rands overall.

Furthermore, there are many other benefits, including relating to biological diversity, food security, soil erosion, siltation of dams, destructive wild fires and much more. All these add to the returns on investment.

Another example relates to the Working on Fire programme.  Forestry South Africa calculated that the damage to the Forestry Industry through major fires in August, 2008, was worth about 3.6 billion Rands – but that this could have doubled had it not been for the Working on Fire partnership.

Whilst the programmes are clearly justified for the outcomes they provide, it is widely recognized that unemployment and inequity are the twin challenges facing our country, and these programmes play a critical role in combating these scourges.  Last year we created 26 700 new work opportunities amounting to 11 676 full time equivalent jobs and 26 891 accredited training person days.

We welcome additional funding of 1.1 billion Rands for the Working for Water and Working on Fire programmes of the Department over the MTEF.

This will bring the total budget for the Environmental Programmes to 7.7 billion Rands over the MTEF, and will provide 205 877 work opportunities and 102 603 full-time equivalent jobs over this three-year period.

In this financial year, we aim to create 62 860 work opportunities, 31 277 full-time equivalent jobs, and 600 youth benefiting from the National Youth Service in addition to 40% of the work being done by youth.

We also aim to ensure that 55% of beneficiaries from our programmes are women, and 2% are for people with disabilities.

Environmental Impact Assessments

Our challenge as a nation in a developing state context is to find a balance between economic growth, social development and environmental sustainability.

We need to be mindful of the fact that without the integrity of our natural systems, there will be no sustained long-term economic growth or life.

Supported by the South African National Biodiversity Institute (SANBI), we have developed ground-breaking information tools to help streamline development, whilst safeguarding natural resources on which (our) society depends.

Towards the third quarter of this year, Minister Shabangu and I will co-launch the National Mining and Biodiversity Guideline in partnership with industry.

This guideline provides the mining sector with a practical, user-friendly tool for integrating biodiversity considerations into the planning processes and managing biodiversity during the operational phases of a mine, from exploration through to closure.

In pursuit of South Africa’s developmental pathway, a shared vision and common goal of sustainability has emerged as a strong driver of industry values and societal behaviour.

South Africa’s mineral endowment implies that mining and the environment will continue to interact and would need to walk this path together to achieve prosperity in a sustainable environment – it is therefore in the spirit of cooperation that these guidelines have been developed such that South Africa’s incredible biodiversity and life supporting ecological processes are not compromised and neither is OUR ability to derive sustainable growth and development from its incredible mineral wealth.

We are looking at an integrated authorisation process together with the Department of Water Affairs that will cover water use licences and Environmental Impact Assessment authorisations and waste licences with a view to later integrating further permits to streamline the regulatory processes.

As advocates of sustainable development, we should not allow environmental protection concerns to be used as an excuse to delay projects in reviews without any decisions being made. We must be clear that when it comes to the evaluation of development plans, we should not confuse length of the process with the rigour of the science.

Honourable Members, we are also in the process of developing a National Environmental Impact Assessment and Management Strategy for South Africa. This strategy aims to address key concerns and constraints within the current environmental impact management system and will shape the manner in which impacts are managed in the future.

In this context, the department is also developing standards for the environmental impact assessment listed activities.

The purpose is that the standards will replace the requirement contained in the 2010 EIA Regulations to obtain an environmental authorisation prior to the construction or expansion of applicable facilities.

In this case, the department is introducing alternative tools to managing possible environmental impacts, and encourages self-regulation, pre planning considerations where possible.

Management of Biodiversity

We inhabit a country which is immensely diverse in terms of its people, culture, landscapes, biological resources and ecology.

Working together with our various stakeholders, we would like to see our country remain as the third most mega diverse country in the world, but ecosystem degradation and biodiversity loss is a reality that continues to threaten our efforts.

This rich environmental heritage sustains many ecosystem services which are the very foundation of our South African livelihood and economy.

As part of ongoing efforts to strengthen the management of our biodiversity, we will launch the National Biodiversity Assessment Report later this month as part of the International Biodiversity Day.

This is a comprehensive technical assessment report of the state of South Africa’s biodiversity and ecosystems, across terrestrial, freshwater, estuarine and marine environments.

The assessment has an emphasis on spatial biodiversity information including species and ecosystems and lays the foundation for effective management of biodiversity and for monitoring our progress against national and global targets.

This comes as South Africa prepares to participate in the 11^th meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD COP 11).

The progress in current key activities that will be reported to CBD COP 11 are among others the development of national biodiversity targets, with a view to contributing to collective global efforts to reach the global targets as well as the updating and revising national biodiversity strategies and action plans.

As announced last year, we are replacing the old SA Agulhas 1 with a new state of the art technologically advanced polar research and supply vessel – the SA Agulhas II.

I am happy to announce that we will take delivery of this vessel, dedicated to a South African heroine Mama Miriam Makeba, tomorrow.

Like Mama Makeba, this new vessel will face a harsh environment as it makes its way through turbulent waters, while opening up new opportunities for applied research into understanding the driving forces of climate change, especially the role of the southern ocean in this regard.

We collaborate with Department of Science and Technology on biotechnology, Antarctica research, Southern Ocean research, particularly around South Africa sub Antarctica islands Prince Edwards and Marion Islands and in the oceans around South Africa’s main mainland.

Our ocean management is guided by our quest to create an understanding of how our oceans function as complex ecosystems. To this end, we will table our Ocean Management Policy Green Paper this year.

We will continue to optimise effectiveness of Marine Protected Areas both offshore and inshore. Marine Protected Areas in general play a significant role in providing sanctuary areas for marine biodiversity to thrive.  They act as nurseries to feed the open areas with matured fish stocks.

Rhino poaching

Honourable Members, the ongoing poaching of our rhino population is a source for great concern to government and the various stakeholders. It requires of us all as a collective to take drastic measures to help combat it.

I would like to assure you that the department, our provinces and its public entities such as SANParks view this illegal killing of our national treasure in a very serious light and will continue to prioritise our fight against this crime jointly with our security cluster Ministers and their departments. We will continue to implement the various initiatives highlighted since last year with additional ones we announced a few weeks ago, while continuing to put in place added measures to address this matter.

The on-going scourge underscores the importance of SADC collaboration on the development of Transfrontier Conservation Areas. The solution is not managing through fences, but to continue the southern African initiative of cross-boundary conservation partnerships.

The increased resources and enhanced coordination between conservation authorities/agencies and security agencies resulted in the record arrests of about 122 poachers, with 199 rhinos lost to poaching.

We are cooperating with perceived transit or consumer countries in the People’s Republic of China and the Socialist Republic of Vietnam.

This year I will be engaged in an extensive process to prepare for the 16th meeting of the parties to the Convention on International Trade in Endangered Species (CITES) of wild fauna and flora that takes place in march 2013 in Bangkok, Thailand.

As part of the preparatory process, I will be engaging stakeholders with a view to reaching national consensus on proposals to relating to international trade in CITES listed species, this will include discussions on whether or not to approach the international community with a proposal to trade in rhino horn. This will entail engaging major role-players including the, international and regional partners, including potential consumer states.

In addition, a Biodiversity Management Plan (BMP) for the Black Rhino was finalised after comments were received from all stakeholders.

This Plan, which will be published for implementation, includes a number of actions, such as an effort to increase the number of populations, law enforcement, standard operating procedures for addressing illegal rhino activities and securing and monitoring of rhino horn stockpiles.

Management of waste

Honourable Members, the Waste Act, will allow us to address some of the waste management challenges we have been grappling with for decades.

Late last year Cabinet approved the National Waste Management Strategy which was developed in accordance with the Waste Act.

This is a government-wide action plan with targets on recycling, job creation and SMME development, including the implementation of Extended Producer Responsibility through the development of Industry waste management plans, the declaration of Priority Wastes and it identifies the need of 800 Environment Management Inspectors at various government levels to implement the Waste Act.

After conducting a study on unlicensed landfill sites across the country, the department has identified lack of technical skills in landfill site operation contributing to poor management of the sites. In response the Department has since trained 325 Landfill Site Operators from 164 municipalities across the country.

Conclusion

Honourable Members, as I conclude, our budget policy presentation sets very ambitious and achievable targets that challenge the notion that there necessarily is a trade-off to be made between faster economic growth and the preservation of our environment.

We suggest instead that good environmental management coupled with integrated development planning will allow us to build a low carbon economy that supports resilient ecosystems and economies.

I would like to thank the Deputy Minister, Ms Rejoice Mabudafhasi, the boards and staff of the public entities under the department, the Director General, Ms Nosipho Ngcaba and her team for the commitment they continue to show in the attainment of our strategic objectives.

I would also like to thank the Chairperson of the Portfolio Committee, Advocate Johnny de Lange and the committee members for their support, guidance and robust engagements.

Thank you.”

From 2 May 2012, the Centre for Environmental Rights will be operating from new, bigger premises at 223 Lower Main Road, Observatory, Cape Town. Our phone and fax numbers will remain the same, but we expect some disruption to our telecommunications and accessibility during the moving period. Please bear with us as we pack up and move between 25 April until 2 May 2012.

Court: Supreme Court of Appeal
Case Number or Citation: (104/2011) [2012] ZASCA 54
Date of judgement: 30 March 2012
Judge/s: Mthiyane DP (Van Heerden, Bosielo, Majiedt JJA and Ndita AJA concurring)
Type of application: Appeal
Legislation considered include: Constitution of the Republic of South Africa, 1996; National Water Act, 1998; Water Services Act, 1997; City of Cape Town Water By-law
Also known as:
Download this judgement in PDF here.

Court a quo: Western Cape High Court
Case Number or Citation:
Date of judgement:
Judge/s: Desai J and Gassner AJ sitting as court of appeal

Court: North Gauteng High Court
Case Number or  Citation: (78163/2009) [2012] ZAGPPHC 54
Date of judgement: 11 April 2012
Judge/s: Van der Byl AJ.
Type of application: Declarator
Legislation considered include: Constitution of the Republic of South Africa, 1996; Promotion of Administrative Justice Act, 2000; Promotion of Access to Information Act, 2000
Also known as:
Download this judgement in PDF here.

Response to the Constitutional Court’s judgement in the case of Maccsand (Pty) Ltd v City of Cape Town and Others, CCT 103/11

1. The Centre for Environmental Rights welcomes the judgement of the Constitutional Court in this case handed down today. The judgement confirms the Supreme Court of Appeal’s decision that, where mining is not permitted by a zoning scheme, the holder of a mining right or permit cannot start to mine, unless and until the land is rezoned to allow mining.
2. The Court clearly and correctly held that the Mineral and Petroleum Resources Development Act, 2002 (MPRDA) – like the National Environmental Management Act, 1998 (NEMA) – is intended to promote s.24 of the Constitution[1], the Constitutional right to healthy environment, and that these statutes require the Minister for Mineral Resources to consult and cooperate with environmental authorities who administer NEMA.
3. While the Court placed great emphasis on cooperative governance between authorities with overlapping mandates, particularly in relation to environmental matters, this judgement also confirms that it is proper and appropriate for government departments and different spheres of government to approach the courts to resolve conflicts between them, should cooperation not be successful.
4. Crucially, the judgement confirms that mining operations and mining companies must comply with all laws, and that the MPRDA does not trump other legislation, including provincial legislation like the Land Use Planning Ordinance.[2] In other words, rights granted in terms of the MPRDA do not enjoy any special status. For too long, the mining sector has operated on the assumption that mining approvals outweighed any other legal requirements.
5. Today’s judgement marks the beginning of the end of decades of special treatment for the mining industry. The consequences of decisions made on mining operations without proper regard for other authorities and other legislation are severe, aggravate the detrimental impact mining operations have on the environment, and do nothing to benefit the country, the mining industry, mine workers or communities. It can no longer be justified.
6. In view of this judgement, it is clear that the MPRDA and any future amendment to the MPRDA must respect the constitutionally mandated functions of the different spheres of government and recognise the essential role of the Department of Water Affairs, the Department of Environmental Affairs, provincial and local government in decisions on mining.[3]

Queries and quotes attributable to Melissa Fourie, Executive Director, Centre for Environmental Rights. mfourie@cer.org.za, 021 447 1647 or 072 306 8888.

[2] Ordinance 15 of 1985

[3] See http://cer.org.za/virtual-library/letters/review-of-the-mprda-2002-and-mprda-amendment-act-2008/

The Constitutional Court has just handed down judgement in the case of Maccsand (Pty) Ltd v the City of Cape Town and others. In brief, the Court has dismissed Maccsand’s appeal, and ordered the Minister of Mineral Resources to pay the City of Cape Town’s legal costs.

Download the judgement here.

This week, the Centre for Environmental Rights is releasing a new report on the state of civil society’s ability to access environmental information held by public and private bodies. The report, funded by the Open Society Foundation for South Africa, is entitled Unlock the doors: How greater transparency by public and private bodies can improve the realisation of environmental rights.

Download the report here: Unlock the doors: How greater transparency by public and private bodies can improve the realisation of environmental rights.

The realisation of the Constitutional right to a healthy environment is dependent on the ability of individuals, communities, civil society organisations, companies and decision-makers to access information about the state of the environment and the impact of human activities.

In July 2010, the CER, with the support of the Open Society Foundation for South Africa, began investigating and assessing the extent to which information about environmental decision-making and impacts was accessible to communities and civil society organisations. While we anticipated some difficulty in obtaining certain types of environmental information, we could not have predicted the astonishing results of this project: with a few notable exceptions, both public and private bodies failed to give access to even the most basic environmental information, in violation of their obligations under the Promotion of Access to Information Act, 2000 and the principles of environmental governance set out in the National Environmental Management Act, 1998.

The CER’s Unlock the Doors report is an analysis of over 100 PAIA requests and 42 formal requests for information made to 17 public and 35 private bodies. The report also analyses and describes the hundreds of phone calls made and emails sent following up on requests for information, and the matters that eventually ended up in applications to the High Court. This analysis reveals a number of significant problems for accessing environmental information and obstacles to compliance with PAIA by both public and private bodies:

• PAIA has effectively become a tool used by some public bodies to avoid formal and informal feedback to civil society on basic governance, and little thought is given to what information should be publicly and easily available as a matter of course and without any formal requests.
• Officials administering requests for information are unfamiliar with PAIA, and its provisions are poorly used and poorly understood.
• Ignoring PAIA requests and deadlines appears to be the default approach of a number of public and private bodies.
• Internal appeals are not properly considered (and are often ignored) by public bodies and there is no appeal mechanism for private bodies. As a result, even the most basic information is often only accessible by instituting expensive court proceedings.
• With a few exceptions, the approach encountered to giving civil society access to information required for the exercise of their environmental rights can only be described as suspicious and fearful.

Both public and private bodies need to give proper consideration to the significant expansion of records made available voluntarily, particularly licences, authorisations and enforceable licence conditions. This will both significantly reduce the administrative burden on these bodies, and will demonstrate a commitment to public accountability and transparency.

In 2012, CER will continue its assessment of civil society access to environmental information, take legal action where required to compel production of records, and continue its engagement with public and private bodies regarding incentives for voluntary disclosure.