Budget Vote speech at the National Assembly by Minister of Transport, Mr Joe Maswanganyi, MP, New Assembly Chambers, Cape Town
Honourable Speaker
Honourable Members of Parliament
Cabinet Colleagues present
Deputy Minister of Transport, Honourable Sindisiwe Lydia Chikunga
Members of the Portfolio Committee on Transport, led by Honourable Chairperson, Ms. Dikeledi Magadzi
Acting Director-General of the Department, Mr. Mathabatha Mokonyama
Officials of the Department of Transport
Chairpersons and CEOs of the transport entities
Invited guests
Ladies and gentlemen
Honourable Chairperson, let me first pay tribute to Minister Dipuo Peters who laid a solid foundation by leading the Department of Transport diligently. This gratitude also goes to all the ANC Ministers who led the Department since 1994.
I am honoured to present the Department of Transport Budget vote 2017 in May - a month where South Africa marks Africa Month under the theme: “The Year of OR Tambo: Building a Better Africa and a Better World”.
This year’s Africa Month celebrations coincide with the centenary of our struggle stalwart, the ANC President, Oliver Reginald Tambo who epitomised the struggle for liberation and was instrumental in rallying support, assistance and solidarity for the African National Congress.
President Tambo Emphasised that political freedom is intertwined with economic emancipation.
Honourable Chairperson, today we are tabling a budget which will go-along way in realising the vision of President Oliver Tambo in transforming the lives of South Africans in particular the previously disadvantaged.
Building from the State of the National Address, by President Zuma, transport will play an important role in leading radical socio economic transformation programme.
The ANC government is indeed serious about economic de-racialisation in pursuance of an inclusive economy.
The South African economy is characterised by vast racial and gender inequalities in the distribution of and access to productive assets, wealth, income, skills and employment. Little progress has been made in achieving greater operational participation and control in the economy by Africans.
This has limited the ability to expand the productive base, sustain economic development, eradicate poverty and contribute to a better life for all.
Effectively, the black majority had been excluded from economic ownership and control fundamentally undermining their ability to accumulate capital.
Honourable Chairperson, to allow the existing economic forces to retain their interests intact is to feed the roots of racial supremacy and exploitation, and does not represent even the shadow of liberation.
Government therefore must ensure efficient and affordable transport to serve production and communities in the interior of the country and to support regional integration.
As the transport sector, we pledge our commitment to transform our procurement environment to ensure Broad Based Black Economic empowerment, promotion of local companies, SMMEs, Suppliers and Communities.
Our people cannot only be subjected to taxis as a business venture. We will broaden their economic emancipation in the construction industry, in the bus industry, in the rail sector, in the aviation as well as in the oceans economy.
This requires us to ensure bold forms of state intervention, including progressive and redistributive procurement, progressive competition policies that promote growth and employment and address poverty and inequality.
We are finalising the much awaited Public Transport Subsidy Policy. The policy will focus more on subsidising the user than the operators, irrespective of the mode used. It is totally unacceptable that other modes, notably taxis are not included in the subsidy regime.
This is despite the result of the 2013 National Household Travel Survey that indicate that the taxi mode is the most preferred by the majority of transport users, accounting for over 68% of the daily commuting public. To this extend, I will be meeting the taxi industry, the rail sector and bus operators to discuss the transport subsidy policy.
We will also be convening Transformation Summits in various sectors of transport to explore further opportunities that will benefit the previously disadvantaged, particularly women, youth and people living with disabilities.
Honourable Chairperson, we continue to evaluate and monitor the mandates of State owned assets and enterprises to ensure that their social and economic mandates, including issues such as procurement, equity and transformation remain aligned to our economic transformation programme. In this current financial year, we will fill vacancies of the Boards and Executive position of all Entities under the Department.
We will marshal our SOE’s to take account of recommendations of the Presidential Review Commission, with a view of transforming them to be the key instruments of the developmental State.
Honourable Chairperson, we have launched an ambitious infrastructure programme, which is gathering momentum every day. Our large public investments in ports, railways and roads, will help alleviate supply bottlenecks in the economy, while social infrastructure will improve the living conditions of our people.
SANRAL is in the process of developing a long term Strategy- Horizon 2030, aligned with the National Development Plan (NDP) vision and objectives. The Strategy will enable the development of a 2030 Roads Plan and will Review SANRAL Operating Model, which includes the New Toll Roads Policy.
Also included in the Strategy is the Transformation Policy which seeks to radically transform SANRAL’s procurement system.
SANRAL is also revisiting its contract model to comply with the 30% requirements of the Preferential Procurement Policy Framework Act (PPPFA) regulations for sub-contracting which will continue to priorities black youth, women, people with disabilities and people living in rural or underdeveloped areas or township.
In 2016, SANRAL continued to conduct training for contractors in both construction and maintenance projects. We trained 4 120 people in road-building and other skills. We created 15 721 jobs through the fulfilment of contracts.
Our contract participation goals saw the development of 1 004 black-owned companies individually contracted to perform work to the value of approximately R1.9 billion.
Working together with the Competition Commission and other law enforcement agencies, we will uproot the practice of widespread collusion in the construction industry.
We welcome the Constitutional Court’s decision to dismiss with costs the application for leave to appeal by two members of the bicycle cartel who were found guilty of price fixing.
We also welcome the wide-ranging probe by the Commission into possible anti-competitive behaviour in the public transport sector. The move will widen entry into the public transport sector by the previously excluded groups.
Honourable Chairperson, President Zuma said during the State of the Nation Address that we have started upgrading the current Moloto road.
We are today reporting that we have appointed contractors to commence with the construction of the Moloto road. At the end of the project, we will create 12 500 jobs.
We are also going to unbundle the bus contract in this corridor to widening participation by small, localised and designated groups.
In 2016, South Africa signed a cooperation agreement with the People’s Republic of China (PRC) to build the Moloto Rail Development Corridor and the Development is included in a list of projects submitted to the Forum on China-Africa Cooperation (FOCAC).
The Moloto rail development will provide a public transport system that is user-friendly, less environmentally damaging, cheaper and seamless. The project covers a railway line with fourteen (14) new stations and eight (8) upgraded stations as well as depots and staging yards which will shape the economic landscape and spatial development of the Moloto corridor
Honourable Chairperson, rail transportation play a critical role in economic growth and development.
Our Rolling Stock Fleet Renewal Programme is underway, with significant progress already made. This is the beginning of the revival of passenger rail after 40 years of under investment which has resulted in old and unreliable trains and rail infrastructure.
On the 9th of May 2017, His Excellency, President Jacob Zuma successfully handed over the new PRASA trains to the general public for operation by Metrorail between Pienaarspoort Station and Pretoria Station as the first deployment corridor.
To date, 18 new trains, affectionately known as “The People’s Train”, have already been delivered. The new trains are part of the first rollout which will be implemented over the next 20 years. The remaining 580 trains will be built in South Africa by Gibela at a local factory, located in Dunnottar Park, Ekurhuleni.
Furthermore, we are facilitating the development of a supplier park that will support the manufacturing at the factory with local components and will help achieve localisation and transformation goals including participation of Black Industrialists, SMMEs, Women and the youth.
The rollout of the new trains will now shift towards other corridors in Gauteng, Western Cape, KwaZulu Natal and Eastern Cape to improve the Metrorail service. The next deployment of the new trains is expected from 2018/19 financial year, with the following corridors targeted:
- Pretoria – Saulsville (Gauteng)
- Mabopane – Pretoria – Johannesburg – Naledi (Gauteng)
- Khayalitsha – Kapteinsklip – Cape Town (Western Cape)
- Umlazi – Durban – Kwa Mashu/Isipingo (KwaZulu-Natal)
Honourable Chairperson, our public transport network system continued to mature, carrying a combined 125 000 passenger trips on an average weekday across Rea Vaya, A Re Yeng, MyCiTi, and Go George.
In addition, six (6) new cities are expected to run operations in 2017/18 including Ekurhuleni, eThekwini, Rustenburg, Polokwane, Mbombela and Nelson Mandela Bay. By 2019/20 the ten (10) operating cities are expected to carry a combined total of 400 000 weekday passenger trips.
Through the Shova Kalula bicycle project, we continue to maximise the use of non-motorized transport to enable learners to access centres of learning.
The Department has procured 6 000 bicycles that will be distributed to needy learners particularly in earmarked rural district municipalities and schools. In the current financial, we will increase the reach of the programme to other users including farm workers and health workers.
Honourable Chairperson, Cabinet has approved the Road Accident Benefit Scheme (RABS) Bill and is ready to be introduced to Parliament. The Bill provides for a social security scheme for victims of road accidents by making provision for a new motor vehicle accident benefit scheme called the Road Accident Benefit Scheme, replacing the current Road Accident Fund.
Honourable Chairperson, I am pleased to announce that the government is now in control of the e-Natis. The Constitutional Court has ruled in favour of the Department for the E-Natis to be permanently transferred to RTMC for management and operation.
To further strengthen our 365 days road safety plan, Cabinet approved the National Road Safety Strategy 2016-2030 to address the challenges and gaps identified by the Department of Transport on the implementation of the previous strategies.
Honourable Chairperson, I congratulate the South Africa Civil Aviation Authority (SACCA), as well as the South African Audit Task Team for ensuring that South Africa passes the recent audit that was conducted on South Africa by the United Nation’s specialised agency responsible for aviation called the International Civil Aviation Organization (ICAO).
ICAO placed South Africa at position one (1) in Africa, and 33 globally. Our audit results have risen from 83,83% to 86,71%. This means that the South Africa civil aviation sector is efficient, secure, economically sustainable, and environmentally responsible.
Honourable Chairperson, we also celebrate the country’s first three (3) black women, namely, Captain Thembela Taboshe, Captain Tshepo Motloutsi and Captain Pretty Molefe who all qualified as Master Mariners or Ship Captains. This is the highest professional qualification for a seafarer enabling the holder to be in command of a vessel of more than 3000 gross tonnage.
Honourable Speaker, allow me to table the 2017/18 Budget which stands at R59 billion.
The breakdown is as follows:
- Road Transport: R27 billion
- Rail Transport: R19 billion
- Public Transport: R12.5 billion
- Civil Aviation: R169 million
- Maritime: R119 million
- Integrated Transport Planning: R81million
- Administration: R406 million
We will through this budget also capacitate the Department by filling key vacant positions to ensure that we deliver on all of the above commitments; taking cognisance of the gender disparities at the executive management.
With this budget we will:
- continue to transform the lives of our people;
- develop and implement interventions aimed at improving transport systems and operations by finalising the outstanding policies; strategies and legislation in road, rail, aviation and maritime sub-sectors;
- implement and monitor implementation of policies aimed at ensuring construction and maintenance of transport infrastructure through programmes like S’hamba Sonke that has proven to be the main creator of jobs and job opportunities;
- to develop and implement interventions aimed at enhancing transport safety and security by implementing the Road Safety Strategy together with the members of the society, finalise the Inland Waterways Strategy, finalise the Aviation legislation that deals mainly with safety protocols; and
- continue to develop and implement policies and strategies geared at improving provision of quality public transport infrastructure and services including learner and non-motorised transport.
In conclusion, I thank the Honourable President; Deputy President, Cabinet Colleagues, our Deputy Minister, MECs, Chairperson and members of the Portfolio Committee on Transport for the support and guidance.
I would also like to thank the Acting Director General, the entire Executive Management of the Department, the Boards and Executives of our Entities, as well as staff members across the three spheres of government.
To my family, you continue to be my pillar of strength, and thank you very much for continuing to allow me to serve our people.
A hi khomaneni hi mavoko hi aka no hluvukisa tiko ra hina ra Afrika Dzonga
Siyaqhuba!
Ndza khensa!
