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Forest Industries Education & Training Authority (FIETA) Thuto ke Matla Forest Industries Education & Training Authority (FIETA) Thuto ke Matla

Presenters • Mike Truelock: Chairperson FIETA • Mike Mokoana: Deputy Chairperson FIETA • Simangaliso Presenters • Mike Truelock: Chairperson FIETA • Mike Mokoana: Deputy Chairperson FIETA • Simangaliso Mkhwanazi: CEO FIETA

Portfolio Committee report back • Industry overview • Risks • Opportunities • Integrated effort Portfolio Committee report back • Industry overview • Risks • Opportunities • Integrated effort required • Summarised delivery record • Interdepartmental cooperation • Training Layoff Fund

Industry overview • Total supply chain under severe economic stress • Operate in pro Industry overview • Total supply chain under severe economic stress • Operate in pro poor areas of KZN & Mpumalanga with retrenchment effect multiplies of 1; 15 -20 • At current exchange rate could be the tip of the iceberg regarding retrenchments

Industry overview cont’ • In the last year +- 70 contracting businesses have shut Industry overview cont’ • In the last year +- 70 contracting businesses have shut down and 9 Sawmills closed • Last 6 months- Notified of Pulp & paper +600 & Forestry +- 680 & Sawmilling +- 150 job losses • Predict a further +-700 in next 6 months

Areas of Risk • Costs increases at 50%+ above PPI – Water 12, 5%; Areas of Risk • Costs increases at 50%+ above PPI – Water 12, 5%; Min Wages 14, 6%; Property rates; Rail tariffs 22 +38%; Electricity +-31% plus a further hike coming • Land use shrinkage – 10, 2 % lost to timber growers • Fibre losses 9% in two years 2007 -8 fire damage – Takes 8 -18 yrs to recover dependant on tree species • The 10% yr on yr efficiency improvements achieved are unsustainable going forward

Opportunities • Government policy change and agreements with Industry partners is seen positively - Opportunities • Government policy change and agreements with Industry partners is seen positively - – Forest charter – Post land settlement support agreements- R 200 mil required – Sustainability models tabled & available for land redistribution

Opportunities cont’ Land use agreements – Unplanted land with valid Afforestation licenses • 30000 Opportunities cont’ Land use agreements – Unplanted land with valid Afforestation licenses • 30000 ha in Eastern Cape and similarly KZN – New afforestation licenses proposals • 10000 ha promise per yr for 10 years not delivered

Integrated effort required • Integrated inter ministerial delivery on policy and collaborative agreements required Integrated effort required • Integrated inter ministerial delivery on policy and collaborative agreements required • Government vigilance on Import threats to SA manufacturing capacity in the local market requested • Faster response to the crises by all parties necessary • Leverage of collaborative agreements in place is essential

Summarised 2008/10 Delivery Record (Audited) Broad Focus Areas 1. Fire fighting 2. Contractor / Summarised 2008/10 Delivery Record (Audited) Broad Focus Areas 1. Fire fighting 2. Contractor / small grower development 3. Post land settlement 4. New venture creation 5. Disability 6. Rehabilitation of offenders 7. Replenishing scarce & critical skills 8. Interdepartmental collaboration

Fire fighting Our foresters, farmers and all other custodians of our land, must use Fire fighting Our foresters, farmers and all other custodians of our land, must use the most effective methods to combat wildfires and to use fire in an optimal manner as an important management tool. Our nation depends on the products and services produced by agriculture, forestry and conservation and we need to do everything possible to protect these from the ravages of wild fires.

Economic Impact of Forest Fires 1 1. Economic Impacts • Impact on Forestry Industry Economic Impact of Forest Fires 1 1. Economic Impacts • Impact on Forestry Industry Ø Value of timber volume losses (present and future) Ø Cost of unplanned harvesting and transport Ø Cost of replanting Ø Disruption caused by unplanned age-class distribution changes • Impact on Forest Products Industry Ø Lost intake Ø Value of lost production

Economic Impact of Forest Fires 2 • Atmospheric pollution • Loss of biodiversity • Economic Impact of Forest Fires 2 • Atmospheric pollution • Loss of biodiversity • Damage to soil • Unsightly landscape (reduced tourism) • Loss of life • Loss of jobs • Loss of livelihoods (business owners)

Total damaged area • • Mpumalanga KZN Cape Swaziland - 47 760 ha - Total damaged area • • Mpumalanga KZN Cape Swaziland - 47 760 ha - 13 948 ha - 2 256 ha - 20 280 Total cost of lost timber in RSA = R 1. 4 billion

Fire fighting Projects - Handbook on veld & forest fires - University veld fire Fire fighting Projects - Handbook on veld & forest fires - University veld fire management training - Municipalities fire management training (Fire Protection Associations / Dept of Agric, Forestry & Fisheries: Forestry section) - Training of forested area communities in veld fire fighting (Working on Fire) (National) - Cattle grazing & bee harvesting training (MP: )

Support for the SME Categories – Forestry contractor – Forestry small growers – Furniture Support for the SME Categories – Forestry contractor – Forestry small growers – Furniture manufacturers – Paper recycling agents – Sawmilling “bushmillers” – New ventures (learners)

Support for the SME Project Siyazuza (for SME) – Silviculture training – Chainsaw training Support for the SME Project Siyazuza (for SME) – Silviculture training – Chainsaw training – Harvesting training • All provinces • Groundbased Harvesting Handbook • Small grower Toolkit (English, Zulu & Afrikaans)

Support for the SME Pulp & paper Paper recycling agents – Business skills – Support for the SME Pulp & paper Paper recycling agents – Business skills – Waste management Furniture • Business skills • Furniture making skills

Support for the SME Sawmilling • Operate crosscutting / trimming facilities • Operate primary Support for the SME Sawmilling • Operate crosscutting / trimming facilities • Operate primary log breakdown facilities • Business principles • Tendering • Preparation of a business plan • HR principles • Charcoal making Currently at the Chris Hani District Municipality & Ermelo

Post land Settlement FIETA/Mondi Land Claims Project • Training of land recipients – Forest Post land Settlement FIETA/Mondi Land Claims Project • Training of land recipients – Forest management – Business skills – Forest fires – Planting & harvesting – Marketing – Running a trust / cooperative meetings

New Venture Creation Unemployed (18. 2) Learners • Waste paper recycling (Mpumalanga) • PRASA New Venture Creation Unemployed (18. 2) Learners • Waste paper recycling (Mpumalanga) • PRASA project • Charcoal making (Ermelo) • Truss manufacturing (Kimberley, Ermelo, “Nkung mathe” • Furniture skills: upholstery, cabinet making, etc. (Umsinga, Inkandla, Greytown, Umhlanga, Soweto, Duduza, Kimberley, Hammaskraal, Umgungundlovu, Tzaneen, Northern Cape, Western Cape, Durban, Ikaheng, etc) Approximately 4000 learners

Support for People Living With A disability Accessible skills: upholstery, polishing & cabinet making Support for People Living With A disability Accessible skills: upholstery, polishing & cabinet making • Adelaide Tambo School (Soweto: 40 learners annually) • All disable learners in Umhlanga (Social Welfare) (Mpumalanga) (320 learners) • JHB Society for the blind (30 learners) • Deaf Federation of South Africa (550 learners) • Ikaheng, Klerksdorp (120 learners) • Kimberly (Social Welfare) (20 learners) • Amputee Association of South Africa (30 learners)

Support to Rehabilitation of offenders • Support prison workshops with Upholstery & Cabinet making Support to Rehabilitation of offenders • Support prison workshops with Upholstery & Cabinet making skills (Boksburg Correctional Services) • Provide sawmilling & furniture skills to juvenile offenders (Juvenile Life Skills, Midrand) - sent by the Germiston Magistrates Court • Support for the Twilight Home for Children (Soweto) • ABET • Computers • Upholstery skills

Replenishing scarce & critical skills • Research on scarce skills • Formulation of a Replenishing scarce & critical skills • Research on scarce skills • Formulation of a scarce skills list for the forest industries sector contributing to the National Scarce Skills List • Updated Sector Skills Plan • Participation in the Artisan Development Programme by government • Project “Vulamathuba” with the National Skills Fund

Replenishing scarce & critical skills Development & registration of new qualifications • National Certificate: Replenishing scarce & critical skills Development & registration of new qualifications • National Certificate: Tissue converting • National Certificate: Arboriculture • National Certificate: Roof trusses • GETC: Lumber milling • FETC: General forestry • Furniture design • Development & supply of qualification materials • Bursaries for PDIs

Interdepartmental & Sectoral collaboration 1. Department of Agriculture, Forestry & Fisheries - Forestry BBBEE Interdepartmental & Sectoral collaboration 1. Department of Agriculture, Forestry & Fisheries - Forestry BBBEE Charter - ABET training - Skills support for Working on Fire, Working on Water & Woodlands 2. Public Works - Accreditation of emerging black training providers 3. JIPSA Eastern Cape

Interdepartmental & Sectoral collaboration 4. Department of Trade & Industry (dti) Industrialisation Policy Framework Interdepartmental & Sectoral collaboration 4. Department of Trade & Industry (dti) Industrialisation Policy Framework Action Plan - Improving technology & equipment of sawmillers in South Africa - Formation of the National Furniture Association 5. Department of Land Affairs: land claims

Training Layoff Fund • Currently running workshops on the recession with all stakeholders • Training Layoff Fund • Currently running workshops on the recession with all stakeholders • FIETA to contribute 50% of discretionary grants funds to the scheme & related programmes

End Thank you End Thank you