Discretionary%20grant%20policy%20and%20process

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

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

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Portfolio Committee report back

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

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Industry overview

• Total supply chain under severe economic stress
• Operate in pro poor areas of KZN Mpumalanga
  with retrenchment effect multiplies of 115-20
• At current exchange rate could be the tip of the
  iceberg regarding retrenchments

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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

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Areas of Risk

• Costs increases at 50 above PPI
• Water 12,5 Min Wages14,6 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 8-18yrs to recover dependant on tree
  species
• The 10 yr on yr efficiency improvements achieved
  are unsustainable going forward

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Opportunities

• Government policy change and agreements with
  Industry partners is seen positively -
• Forest charter
• Post land settlement support agreements- R200mil
  required
• Sustainability models tabled available for land
  redistribution

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Opportunities cont

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

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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

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Summarised 2008/10 Delivery Record (Audited)

• Broad Focus Areas
• Fire fighting
• Contractor / small grower development
• Post land settlement
• New venture creation
• Disability
• Rehabilitation of offenders
• Replenishing scarce critical skills
• Interdepartmental collaboration

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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.

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Economic Impact of Forest Fires 1
1. Economic Impacts

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

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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)

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Total damaged area

• Mpumalanga - 47 760 ha
• KZN - 13 948 ha
• Cape - 2 256 ha
• Swaziland - 20 280
• Total cost of lost timber in RSA R1.4 billion

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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
  )

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Support for the SME

• Categories
• Forestry contractor
• Forestry small growers
• Furniture manufacturers
• Paper recycling agents
• Sawmilling bushmillers
• New ventures (learners)

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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)

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Support for the SME

• Pulp paper
• Paper recycling agents
• Business skills
• Waste management
• Furniture
• Business skills
• Furniture making skills

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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

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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

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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

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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)

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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

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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

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Replenishing scarce critical skills

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

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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

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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

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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

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End
Thank you