M van Schalkwyk: Environmental Affairs and Tourism Dept Budget Vote,
2007/08

5 June 2007

Partnerships, protection and prosperity

Madam Speaker, it is a great privilege to present the Budget Vote for
Environmental Affairs and Tourism on 5 June, World Environment Day. Globally,
the chosen theme for 2007 is "Melting ice, a hot topic?" Madame Speaker,
climate change and other environmental issues have recently, and within a very
short period of time, dominated world news, and captured the imaginations of
ordinary people around the world.

Over a 15 year period, international dialogue on environmental issues has
moved from being principally the concern of environmentalists to becoming a
universal concern that is now in the mainstream. Today, environmental issues
are on the agenda of virtually every global forum, including the Group of Eight
(G-8), Group of twenty (G-20), United Nations (UN) Commission on Sustainable
Development, World Bank, World Trade Organisation and the World Economic
Forum.

Our department remains firmly committed to our pledge to entrench and
enforce the right of all South Africans to a clean and safe environment and to
secure sustainable development that also furthers economic growth and social
objectives. To this end, we have had to ensure that the process of
mainstreaming environmental issues is accelerated in South Africa. Our approach
is to galvanise partnerships in order to secure the best possible outcomes for
environmental protection and economic prosperity for all our people.

Partnerships for prosperity

Madame Speaker, the partnerships consolidated by Department of Environmental
Affairs and Tourism (DEAT) over the past year have done much more than aid the
protection of our environment for future generations. Our partnerships have
also made an outstanding contribution to the economic well-being of many South
Africans. Nowhere is this more evident than in the tourism sector.

Tourism sector performance

The tourism industry, given pride of place amongst Accelerated and Shared
Growth Initiative for South Africa's (AsgiSA) priority sectors, has outdone
itself yet again. Arrival statistics for 2006 show that South Africa received
almost 8,4 million international arrivals, an increase of more than one million
visitors compared to the previous year, and resounding evidence that the
focused marketing efforts of South African Tourism (SAT) are paying off in
every sense.

Thus far, the implementation of the airlift strategy, the result of a strong
partnership between DEAT, SAT, the Department of Transport and the private
sector, has shown impressive increases in capacity to bring tourists to South
Africa. Between September 2006 and January this year, rights for almost 1,4
million additional seats per year were secured.

Sharing the fruits of tourism growth

It is of paramount concern to DEAT that the fruits of growth experienced by
the tourism sector are accessible to all South Africans. The Tourism Black
Economic Empowerment (BEE) Charter Council has been hard at work over the past
year.

The Department of Trade and Industry's Broad Based BEE Codes were gazetted
on the 9 February 2007, and we are hard at work in aligning our charter with
these codes.

Open Africa route

In order to fulfil the revenue, seasonality, distribution, length of stay
and transformation requirements of the South African tourism industry, DEAT is
funding the Open Africa Route initiative. The development of these routes will
focus on the packaging of second economy products into tourism experiences. 23
existing routes are being revised to include second economy operators, and
three new routes are being developed. On average each route will assist 30
Second Economy operators.

Rest assured, Madame Speaker that we are providing a comprehensive range of
support measures to ensure that second economy operators are well equipped to
meet the high expectations of both local and international travellers. 2 025
small-medium micro enterprises (SMMEs) will be trained on Tourism Awareness and
810 will be trained through business management, human resource management,
marketing and financial management courses. Two thousand and five hundred SMME
rooms will be graded by 2009.

Tourism safety and awareness

I met with key industry stakeholders earlier this year and we have
widespread buy-in for our Tourism Safety and Awareness Strategy that will be
launched in September this year, during our tourism month celebrations. The
strategy involves pro-active measures as well as support measures where
incidents have occurred. The safety tips booklet for tourists has been revised
and was distributed at the Tourism Indaba that was held last month. We are
working with the SAPS on our Tourism Safety and Awareness Handbook for
practitioners, which will serve as the definitive guide for the entire
industry.

Partnerships for protection

Our partnerships have assisted us to come up with strategies, implementation
plans, legislation and management practices that place us in a stronger
position to protect our environment for the benefit of all our people.

Climate change

Our roadmap for a national climate policy recognises that the solution to
the critical challenges we face should be addressed through integrated
government planning, in collaboration with stakeholders through the National
Climate Change Committee (NCCC) and a strengthened multilateral regime.

To this end, the Inter-Ministerial Committee on Climate Change led by DEAT
initiated the Long Term Mitigation Scenario (LTMS) process. This process will
outline the range of ambitious but realistic scenarios of future climate
action, notably long-term emissions scenarios and their cost implications. In
addition, various national departments, provinces and cities are refining their
sector plans in line with the National Climate Change Response Strategy.
Working closely with industry, DEAT will also be finalising our updated
Greenhouse Gas Inventory. All this will inform our first ever Long Term
National Climate Policy. We plan to publish this during 2008/09.

DEAT will also initiate a process that will, over the next few years, match
our efforts on the mitigation scenario building process. This will culminate in
a National Adaptation Plan.

Nature based tourism and wildlife are cited by some 30% of international
visitors as key attractions in conservation areas and beyond. With tourism
contributing just over eight percent to our GDP, the economic impact of climate
change on tourism could be very large indeed.

Globally, by mid century, 20% to 30% of plant and animal species are likely
to be at increased risk of extinction as a result of climate change. In
sub-Saharan Africa, the Intergovernmental Panel on Climate Change (IPCC)
indicated that between 25% and 40% of animal species in national parks will see
further increases in threat status. South African Fynbos and the Succulent
Karoo ecosystem seem particularly vulnerable and for a mean global temperature
increase of between two and three degree Celsius during this century, we stand
to lose between 50% and 65% of our unique Fynbos.

In order to conserve our magnificent heritage and key environmental assets,
and ensure that these are passed on intact to the children and grandchildren of
our nation, and indeed the world, we have to recognise that our knowledge base
is incomplete. Within DEAT, we will focus pro-actively on enhancing research on
the impacts of climate change on key environmental assets and biodiversity
management on land and in our oceans. This will inform ecosystem planning,
biodiversity management, the management of marine resources, park management
and climate change adaptive plans.

Our national parks and trans-frontier conservation areas

Infrastructure development funds allocated to South African National Parks
(SANParks) totals R574,9 million. Coupled with the R600 million that is being
spent on the infrastructure component of the Expanded Public Works Programme,
total expenditure on upgrading, as well as new rest camps, tourism roads,
fences and other infrastructure, will have exceeded R1 billion by 2010.

In terms of 2010 accommodation, SANParks signed a Memorandum of Co-operation
with the Federation International Football International (FIFA) accommodation
and ticketing company, match providing soccer fans with the chance to have a
truly unique World Cup experience. In the event that SANParks is called on to
provide more accommodation units than are currently available in its inventory,
the organisation has made provisions to erect, at short notice, tented
accommodation to meet any demands that may be placed on the facilities.
Provision of services in national parks throughout the 2010 World Cup
tournament will occur with very minimal disruption to domestic visitors who
remain the organisation's backbone.

In June 2005 eight Southern African Development Community (SADC) member
states adopted a strategy aimed at positioning our Trans-frontier Conservation
Areas (TFCAs) and Trans-frontier Parks (TFPs) as premier international tourism
attractions for 2010 and beyond. We therefore plan, before the end of the year,
to hold at least two investor conferences, one in South Africa and one in
Europe to attract investment into major tourist facilities within the
TFCAs.

Our marine and coastal management

Partnerships with industry and communities have enabled us to make major
progress with the allocation of fishing rights. Following the 2001 allocation
of medium-term fishing rights of two to four years, last year the department
allocated long-term commercial fishing rights of 8 to 15 years in 20 fishing
sectors. The biggest challenge in the rights allocation process was to balance
declining and migrating marine living resources with the high demand for access
to these resources. A total of 2 542 long-term commercial fishing rights were
allocated to successful applicants and appellants, significantly improving the
transformation profile of the industry. The estimated wholesale value of
production in the fishing industry was approximately R4,5 billion last
year.

We are strengthening our partnerships with non-governmental and
community-based organisations. A case in point is the interim relief agreement
that was reached with Masifundise. Whilst we are finalising our small scale and
subsistence fishing policies, we have instituted a temporary measure, granting
interim relief to about 1 000 fishers in communities between Port Nolloth and
Arniston. Government and fishing industry stakeholders have also agreed to move
towards establishing a future unified liaison structure. We had a constructive
meeting with the industry yesterday and agreed on principles for a
representative body to advise the department. The structure will include
representatives from all sectors of industry and skilled specialists.

Honourable members, we have also taken the bull by the horns with regard to
the Marine Living Resources Fund (MLRF). We are implementing a turnaround
strategy, focusing on short-term interventions as well as medium term
strategies for addressing the state of the fund, both financially and
organisationally. Progress against this strategy is being closely monitored and
we have given the House a progress report subsequent to the Standing Committee
on Public Accounts (Scopa) hearings.

Madam Speaker, scientific studies show that the abalone resource remains on
the verge of collapse. It seems that there is little prospect of recovery in
the short term. The main causes of the decline in abalone are poaching and
ecosystem effects; most notably, the migration of West Coast Rock Lobster into
areas where abalone is located. Environmentally, an intricate relationship
exists between abalone, sea urchins and rock lobsters. During the early 1990's,
when rock lobster migration started, it led to the complete demise of the sea
urchin population and to a severe reduction in the recruitment of juvenile
abalone. The impact of the encroachment is that two of the four abalone zones
were lost to the fishery.

Despite many successful examples of monitoring and surveillance of the
abalone sector, the resource continues to decline at an alarming rate. If by
November we do not see a significant reversal of this situation, we will be
forced to announce a plan to close down the commercial abalone sector for a
period of about 10 years, which is what is required for the resource to
recover. The challenge for our department will be to enlist the support of
other departments and state agencies, locally and provincially, in the joint
development of alternative livelihood strategies for those fishers and
communities who will be adversely affected by the potential closure of the
abalone fishing sector. It is my belief that marine aquaculture can play an
important role in filling such a gap.

Marine aquaculture is an integral part of our strategy to diversify the
fishing industry. Taking into account the global picture, as well as our local
needs, we are almost ready to gazette the first ever marine aquaculture policy
for South Africa. The policy aims to create an enabling environment that
includes looking at achieving transformation and broadening participation in
the industry through SMME initiatives and facilitating finance and skills
development. Our policies are also intended to improve the management and
control of environmental impacts and increase the resource base to a more
diverse suite of species. It gives me pleasure to announce that our Department
will be initiating four marine aquaculture projects, one in each coastal
province, in the 2007/08 Financial Year.

Legislation and Regulation

Madam Speaker, DEAT will continue to strengthen its regulatory muscle
through the development of legislation, regulations, norms and standards to
facilitate better management of the environment. We have prioritised pro-active
risk management and strict regulatory enforcement. Our legislative programme
this year includes four bills that will be tabled in parliament, the National
Environmental Management Act (Nema) Amendment Bill dealing principally with
environmental management inspectors, the Waste Bill, the Nema Chapter 5
Amendment Bill dealing with environmental impact assessments (EIAs) and the
Integrated Coastal Management Bill.

The department published draft norms and standards for the management of
elephant populations in South Africa for public comment in March. We received
over 700 pages of comments, from a wide range of individuals and organisations
by the closing date of 4 May 2007. The comments have been consolidated into a
single document, which will now be discussed with the provincial authorities
and other requisite stakeholders before being amended and finalised.

The regulations relating to threatened and protected species, developed
after an intensive public consultation process, were published in February 2007
for entry into force on 1 June 2007. However, after consultation with some
provincial MECs the date of entry into force was postponed to 1 February 2008
to allow provincial authorities enough time to make the necessary preparations
for implementation. I want to make it clear that this is in no way intended to
signal a softening of our position on reprehensible practices such as canned
hunting of large predators. These regulations signal the start of a clean-up of
the hunting industry. They lay the basis for a well-regulated and ethical
hunting and game farming industry in South Africa. The hunting industry is an
important industry but its long term survival will be guaranteed only if it is
based on defensible practices.

We are therefore opposing court action initiated by the South African
Predator Breeders Association in the High Court in Bloemfontein against these
regulations. I want to make it clear that South Africa has a long-standing
reputation as a global leader on conservation issues. We will not allow our
achievements to be undermined by unethical and rogue practices.

The Integrated Coastal Management Bill was gazetted in December 2006. This
new piece of legislation will lead to the adoption of a new approach in
managing the nation's coastal resources. This will promote social equity and
make better use of coastal resources, whilst also protecting the natural
environment. Comments received from the public participation process indicate
overwhelming support for the Bill and its principles. These comments have now
been incorporated into a new version of the Bill which is scheduled for tabling
in Parliament later this year.

Environmental impact assessments (EIAs) are internationally recognised as an
important tool to enable governments to ensure that environmental
considerations are taken into account when reaching important decisions on
development and investment. Since the promulgation of the 1997 EIA Regulations
approximately 50 000 applications have been submitted to EIA authorities. The
1997 Regulations were repealed on 3 July 2006, at which time 5 859 of these
applications were still pending finalisation. In the period between 3 July 2006
and 31 March 2007, 3 034 of these applications were finalised, reducing the
number of pending applications by more than half.

Chapter Five of the National Environmental Management Act (Nema) and the EIA
Regulations are currently being amended in order to ensure that our processes
are as efficient as possible. These amendment processes will be concluded by
the second half of this year. These amendments are intended to eliminate
problems, correct thresholds and further rationalise the system so that EIAs
can be processed even more speedily. Furthermore, the Nema amendment provides
the powers in law to introduce further strategic planning tools that will in
the medium term mean that less individual EIAs will be done as environmental
planning is better integrated into the overall planning process.

In conclusion, Madame Speaker, I would like to thank the department, under
the capable leadership of Director-General Pam Yako, each and every DEAT staff
member, as well as the Chief Executive Officers and boards of our statutory
bodies for their tireless efforts to build partnerships for protection and
prosperity. None of the achievements that I have spoken of today would be
possible without the hard work and dedication of these outstanding individuals
whose commitment to consolidating the achievements of our first decade of
freedom is without question.

I would also like to express my thanks to our Deputy Minister, Rejoice
Mabudafhasi, for her hard work and support this year, as well as to Honourable
Langa Zita, Chairperson of our Portfolio Committee, and to every member of the
committee, which remains involved, committed and active.

I would also like to thank our numerous partners, both beyond and within our
borders, including industry, non-governmental organisations and communities for
working with us to achieve collectively what none of us could have achieved
individually.

I thank you

Issued by: Department of Environmental Affairs and Tourism
5 June 2007