1. Valuation and Rating of Conservation Land and properties Policy issues and options 11 June 2003

2. Current draft of the Bill 4 15 (2) (e) any state owned land declared as a national or provincial protected area, excluding any such part of such area which is used for commercial or business purposes

3. Three fundamental issues… 4 Definition of protected area 4 Private land earmarked for conservation/ bio-diversity purposes 4 Effect of rates on conservation

4. Specific issues and concerns raised by conservation bodies 4 Definition of protected area must accord with definition in Protected Areas Bill (draft 10) 4 This includes Forests, World Heritage sites and Mountain Catchment areas protected areas, and by implication private and communal land on which a protected area is created

5. Specific issues and concerns... 4 The Bill (should) “exempt” any land in a protected area from municipal rates, ie not just state owned land 4 Also no exemptions for any other conservation areas, eg (private) areas not included in Protected Areas Bill 4 Important to limit applicability (of exemptions) to only the most deserving areas and not the range the bill currently includes 4 Important to include those (private) landowners whose rights would be curtailed by being contracted into a protected area

6. Specific issues… rates policy 4 Municipalities must be forced to consider the effect of rates policy on natural resource conservation and sustainable land management (eg alien clearing) 4 Municipalities must consider the effect of rates policies on Threatened Ecosystems as defined and listed in the Bio-diversity Bill

7. Proposals on how to implement.. 4 Concern: Exemption provision in current draft of the bill may be open to abuse by a wide range of actors 4 Proposal: National Bio-diversity Framework can ID areas for conservation action or inclusion in protected areas 4 Land owners can pick up these costs 4 Other properties can only become eligible for inclusion if located in an area identified in bio- regional plan, subject to approval by the MEC or Minister 4 bound by a management agreement with the MEC or Minister in terms of Protected Areas Bill

8. Proposals on how to implement (2). 4 Concern: Municipalities cannot quantify their exposure to rates relief for private land contracted into protected areas 4 Proposal: Conservation authorities can do most of the administration involved in identifying private land that qualifies in terms of Protected Areas Bill 4 Perspective: Preliminary studies indicate that the revenue foregone may be as low as 2% nationally

9. Proposed changes to Bill 4 Adoption of Rates Policy (Section 3)... 4 add (h) to 3(2)... take into account the effect of rates on encouraging conservation of natural resources and sustainable land use; and 4 (i) take into account the effect of rates on promoting the conservation of Threatened Ecosystems as listed in the National Environmental Management: Bio-diversity Bill

10. Proposed changes to Bill... 4 Principle …rates should not be used to penalize landowners committing land for public benefit in protected areas 4 One of strongest incentive to get landowners to “effectively donate” the conservation use rights of their properties is exemption from rates 4 Note (1) …no exemption for buildings or commercial activities is requested 4 Note (2) No request that private game farms or any type of informal conservation area be exempted

11. Proposed changes to Bill... 4 Definitions 4 “protected area” means any area listed in terms of section 9 of he National Environmental Management: Protected Areas Bill (2003) as an area for the conservation of biological diversity in the area or the preservation of the ecological integrity of the area

12. Proposed changes to Bill... 4 Changes to Section 15, Part 3, Limitations on levying of rates 4 15 (2) (e)… any State Owned land declared as a national or provincial protected area, excluding any such part of such area on which improvements have been erected is used for commercial or business purposes

13. Research and emerging practices 4 Approaches to Valuation and rating of conservation land/ land earmarked for conservation purposes has an impact (positive or negative) on conservation / bio- diversity management 4 Some proof that valuation and rating practices may enhance achievement of conservation objectives 4 Some policy options...

14. Some policy options 4 National Government bears the costs of income forgone for a period of time 4 Allow rates to be deducted from income of landowners who enter into legally binding conservation agreements 4 Exempt from rates all land that is covered by a binding conservation agreement 4 Value (high value) conservation land on the basis of current use rather than basis of development potential