Valuation and Rating of Conservation Land and properties

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

Current draft of the Bill • 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

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

Specific issues and concerns raised by conservation bodies • Definition of protected area must accord with definition in Protected Areas Bill (draft 10) • 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

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

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

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

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

Proposed changes to Bill • Adoption of Rates Policy (Section 3) ... • add (h) to 3(2)... take into account the effect of rates on encouraging conservation of natural resources and sustainable land use; and • (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

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

Proposed changes to Bill ... • Definitions • “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

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

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

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

Valuation and Rating of Conservation Land and properties