FOREST SECTOR CHARTER COUNCIL Portfolio Committee Presentation 30 March 2011 Department of Agriculture, Forestry and Fisheries Mr. Pasco Dyani- Chairperson 1

PRESENTATION OUTLINE Forest Sector Charter Forest Sector Charter Council Vision, Mission and Values Progress in the implementation of the Charter -Encourage, support & facilitate implementation of Charter -Monitor & report on implementation of Charter undertakings and BBBEE status -Publicise Charter and inform stakeholders about Charter opportunities 2

Forest Sector Charter Forestry BBBEE Charter signed by the DWAF Minister and stakeholders on 22 May Published in the government gazette as a Sector Code (legally binding to all forest entities). Main objective –” To extend economic opportunities and benefits of Forest Sector to the previously disadvantaged black communities”. Forest Sector Code applies to the growers sub-sector, contracting sub-sector, fibre sub-sector, sawmilling sub- sector, pole sub-sector and charcoal sub-sector 3

Forest Sector Charter 4

Forest Sector Charter Council “Council” launched 22 May 2008 & legally constituted as a section 21 Company Main responsibility- “To oversee, monitor & encourage implementation of the Charter. Composition: -Industry, Government, Labour, Communities, FIETA & IDC. Issues debated - QSE threshold, land matters, water use licensing, industry codes of good practice, delivery of undertakings, transformation status of the sector 2 strategic session, ( , ), 14 meetings ( ) Reporting: The President’ BEE Advisory Council, Ministers- DTI & DAFF Forest Sector Charter Council 5

Vision -To achieve sustainable B-BBEE and growth in the forest sector through active and meaningful participation of all stakeholders Mission -To support, promote and guide transformation of the Forest Sector and secure compliance by Stakeholders with Charter requirements Values -Good governance -Transparent -People Centred -Dynamic -Respect for people/Integrity -Respect for confidentiality 6

Progress in the implementation of Charter Encourage, support and facilitate implementation of charter -Review yearly priorities, identify new activity areas & define work programme and & role of task teams -Review business plan and budget highlighting prioritised activities -Provide access to information to stimulate further interactions with other stakeholders (e.g. Website, pamphlets) Action plan - Hold a strategic session yearly - Draw up yearly business plan and budget - Populate website 7

Progress in the implementation of Charter Monitor and report on the implementation of Charter undertakings and on the BBBEE status Charter Obligations -Solicit progress reports from industry & government on Charter obligations -Tabulate actions and changes required - Identify potential & emerging issues - Monitor progress Action plan -Monitoring progress & provide guidance for proper implementation 8

Progress in the implementation of Charter BBBEE Status -Solicit scorecard information from verified enterprises -First transformation report issued -Average score of 61, sector a level 5 contributor -Sector performing well in enterprise development and socio-economic development -Poor performance on management control & skills development -Status to improve since Sappi & Mondi are now level 3 contributors It should be noted that scores were weighted 9

Progress in the implementation of Charter BBBEE Status - QS contractors (82.4, level 3) - Pole treaters (73.4, level 4) - Plantation pulp & paper products (69.0, level 4) - QS millers (61.6, level 5) 10

Progress in the implementation of Charter Action plan -Submit report to Minister and the President’ BBBEE Advisory Council to ensure accountability -Finalise verification manual under the sector code -Finalise the web-based reporting systems -Update database of forest enterprises -Ensure total coverage of sub-sectors & annual reporting from forest entities -Review, tabulate & implement changes required to ensure effective implementation of the Charter scorecard and undertakings 11

Progress in the implementation of Charter Publicise Charter & inform stakeholders about the benefits & opportunities -Outreach programme -Finalised the user guide which serve a supporting document for easy understanding of Charter -Reviewing financial models in the Companion document Action plan -Establish a call centre & helpline -Prepare information pamphlets -Post all relevant information on to the proposed web-site -Adopt proposed financial models 12

THANK YOU 13