Question NW265 to the Minister of Agriculture, Forestry and Fisheries:
09 March 2018 - NW265
Xalisa, Mr Z R to ask the Minister of Agriculture, Forestry and Fisheries:
1) How many State Forests have been leased out to Rance Timber in the Eastern Cape? What are the names of these forests? How long the lease agreements and what are the duties and responsibilities of both the department and Rance with regards to these lease agreements?
Reply:
The Amathole Forestry Company (AFC) under Rance Timber Holdings is one of the four companies that have leased land from government. These were concluded during the privatisation of forestry assets by government as led by the Department of Public Enterprises. The lease agreement between DAFF and AFC is a minimum of 70 years based on the average rotation of a plantation, which ranges between 25 and 35 years. In the 25 405 hectares of leased land, there are 11 plantations where company own the trees and the land will be restored to the communities once the land claims have been finalised by the Department of Rural Development and Land Reform. The plantations are Cata, Cwencwe, Dontsa, Evelyn Valley, Fort Cunynghame, Hogsback, Izeleni –Ndakana, Kubusi-Isidenge, Qacu, Rabula and Zingcuka.
To ensure Sustainable Forest Management, which ensures that there is environmental, economic and social benefit through these plantations, the Department and the company have responsibilities as outlined in the lease agreement.
LEASE OBLIGATIONS |
RESPONSIBILITIES |
PROGRESS |
|
Clause Description |
Government (DAFF) |
Amathole Forestry Company |
|
Rentals Payment of annual Lease rental |
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Rent review Review of lease rental rates every 5 years |
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The Rent review process for AFC was last undertaken in 2015 and will be undertaken again in 2019. |
Grant of Lease Licence The Minister to issue the companies with a Lease licences |
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AFC was issued with a Lease Licence |
Bank guarantees |
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AFC produces a bank guarantees to DAFF at the beginning of each calendar year. |
Use and changes of use of the leased land. |
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No major changes have taken place on the leased land. Most changes that have taken place were due to delineation of water reserves and applications for power lines, road upgrades and communication towers. |
Sustainable Management of Forests |
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AFC is certified and submits the updated FSC certificate to DAFF on an annual basis. |
Access to research facilities |
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All research plots are still in good condition. Authorised institutions are allowed access to the research plots |
Right to inspection and formation |
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AFC has applied for a planting licence for certain areas and the planting licences have not been issued yet |
Transfer of land to land claimants |
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DAFF, DRDLR and AFC are engaged in discussions regarding the suitable settlement model for settling land claims lodged against the leased land. |
Maintenance of improvements and alterations and additions |
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During land use verification audits, infrastructure is inspected to verify whether it is maintained properly. |
Third party rights -Rights of communities living adjacent the leased land. This includes Eskom Servitude rights, Licences and contracts |
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Certain communities have customary rights on the leased land, which include grazing rights, water, fuel wood, honey and thatching grass collection, which AFC is obliged to permit. |
Schedule of land rights issues |
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AFC reports on a quarterly basis on their engagements with communities living next to their operations. |
Public Access Public access for recreational and other purposes in terms NFA |
To monitor that the companies allow access to the leased land for recreational, spiritual and educational purposes in terms of the National Forests Act, 1998. |
To allow access to the leased land for recreational, spiritual and educational purposes in terms of the National Forests Act, 1998. Access maps, rules and conditions provided |
AFC has designated areas for recreational and other purposes. Maps and rules for the designated areas are updated and submitted to DAFF on annual basis |
Registration of the lease in the Deeds Office |
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No lease has been registered yet. Engagements are on- going |