J Radebe: SA National Taxi Council National Conference

21 March 2006

It is my great pleasure to join SANTACO in this vitally important second
national conference. Let us remember, it is five years since SANTACO various
mother bodies and Provincial Taxi Councils (PROTACOS) came together in Durban
to give organisational form to a representative voice of the taxi industry in
our country.

SANTACO was formed by the taxi industry to serve as its representative voice
and advance the interests of all taxi operators. As representatives of taxi
operators from the breadth and length of country gather over two days for the
primary purpose of electing a national leadership and renew the mandate of this
leading body of the taxi industry, we need an objective assessment of the
achievements and shortcomings of SANTACO to remind ourselves of the
expectations of the majority of taxi operators around the country and the many
challenges still facing this important industry of our people.

The thousands of taxi operators around the country even those who do not
consider themselves members of SANTACO will indeed be looking at this national
conference with high expectations. It is important that as delegates
representing taxi operators from all provinces of our country, we make the
commitment that together we will not fail the expectations of taxi operators as
part of broader efforts to empower the majority of South Africans who were
denied the opportunities under apartheid.

This national conference coincides with the national celebration of our
Human Rights Day. This conference is again a reminder that South Africa is
making good progress in its efforts to engender a culture of human rights. It
is important to remind us that human rights are not only about a Bill of Rights
and a good Constitution but also about our ability to translate these
fundamental rights into reality to improve the lives of people. We need to
ensure that all South Africans enjoy human dignity and are able to meet their
basic needs the right to shelter, education, water and many basic amenities of
life constitute an integral part of socio economic rights contained in our Bill
of Rights. We should be proud and celebrate Human Rights Day because these
rights are becoming a reality in a South Africa that is fast becoming a better
place to live in. We should celebrate that today many women form part of
decision making at all levels of our society including at the local sphere of
government and shaping the future of South Africa.

We also need to observe human rights day as part of our collective
acknowledgement that much still needs to be done to protect and deepen the
rights of women and children from all forms of oppression and abuse. We need to
deepen human rights to ensure that farm workers and domestic workers are
treated as human beings. Most of all we should strengthen our collective
efforts aimed at creating a society of shared growth and equal opportunity
where human rights are not only observed but could mean improved access to
opportunities and practices that make South Africa to belong to all its people.
The Freedom Charter says “all shall enjoy human rights” and further commits to
a society where “all shall be equal before the law.”

Today the taxi industry enjoys these fundamental human rights and is no
longer subjected to the backward and discriminatory laws of the past. Taxi
operators as part of our democracy operate freely in all corners of our country
and have the right to conduct business everywhere in South Africa. The
indignity that taxi operators were subjected to in the past no longer forms
part of our statutes. As we gather today we should commit ourselves to
observing the Bill of Rights in every sphere of our lives. The taxi industry
should observe these rights in its own business where safety and comfort for
all passengers are observed at all times and respect for the elderly and the
young become a way of life.

The Bill of Rights also recognises the right of all our people to freedom of
association. As the democratic government we continue to demonstrate our
commitment to the right of all our people to express themselves freely. Fear
and intimidation no longer have a place in a democratic and civilised society
as South Africa.

As we observe human rights and the many freedoms we enjoy today, the taxi
industry should also commit to work with us and contribute to a culture of
human rights and a society where intimidation, threats and violence are
eliminated and no longer tolerated by the industry. Taxi operators have the
right to criticise government without fear of arrest and equally have the right
to elect their own leaders without intimidation and coercion.

I wish to take this opportunity to assure the taxi industry that your right
to associate freely and express views that are even contrary to positions of
the government will always be respected. The government is not threatened by
the presence of a strong and vibrant taxi industry that vigorously defends and
advances the interests of taxi operators. To this end government has no
intention to manipulate and undermine the democratic process for the election
of leaders of the taxi industry. We are not interested in having “stooges” who
will promote the interests of the government rather than those of taxi
operators.

In fact it is in the best interest of the government that the taxi industry
elects a leadership coming from its own ranks and that speaks in a manner that
reflects the anxieties, fears and hopes of taxi operators. This will make it
better for government to understand the concerns and interests of the taxi
industry and to respond better and coherently to the empowerment of the
industry.

A vibrant and strong taxi industry that shares in the vision of
transformation and is committed to improving public transport for the better is
what is needed in our country. We have worked together with the taxi industry
in identifying the challenges facing the taxi industry and defining the nature
of government intervention in the industry.

The recognition of the fundamental need for regulation as well as the
current approach to the taxi recapitalisation process reflect indeed the
consensus that we have built over the past five years. Government has and will
not impose its own vision and agenda on the taxi industry. It is also important
that we together recognise our people‘s own impatience with our failure to move
decisively forward and with speed in implementing decisions we made together
over the years.

The formation of SANTACO in 2001 in Durban was a fundamental moment in the
history of the taxi industry in South Africa. Its primary objective was to
champion the interests of taxi operators and serve as a representative voice of
the taxi industry. The existence of SANTACO took the industry to new heights
and created a common framework within which the taxi industry could announce
its arrival in democratic South Africa. The presence of SANTACO has contributed
immensely to stability and unity in this industry and through its leadership,
restored the confidence of the corporate world in this important sector.

Today there is a deeper appreciation within government and the corporate
sector of the critical role that the taxi industry is playing within our
commuter (public) transport system and its contribution to economic activity in
South Africa. There is also realisation that for this sleeping giant to realise
its full potential, capital and operational subsidy will make a difference in
the nature of taxi operations and enable many taxi operators to operate fully
as a business.

We should commend SANTACO for fulfilling its leadership role in the taxi
industry and restoring a sense of hope and commitment of taxi operators in the
future of the taxi industry. Through deepening democratisation the taxi
industry should be saying today that never again shall it return to the period
before 2001 where the industry was characterised by violence, intimidation and
lack of a common strategic purpose.

As we embark on a process of electing the national leadership for SANTACO,
we should defend SANTACO as both the representative voice of and vehicle
through which the taxi industry should improve its own position. We need to be
proud and celebrate the remarkable achievements of the past five years. As we
focus on the elections we should take collective responsibility and focus on
building a vibrant and united voice for the taxi industry as a whole. We should
not reverse the enormous achievements of the taxi industry.

Whilst giving credit to ourselves we should also be robust and identify
shortcomings and failures of SANTACO. Firstly, whilst structuring confidence by
bringing on board government and the corporate world especially the banks and
vehicle manufacturers the benefits of some of the commercial deals that SANTACO
has made have not reached nor been felt by many taxi operators on the
ground.

As part of the broader black economic empowerment interventions, I will
support and encourage the taxi industry to take control of key strategic areas
in the value chain of the industry. However, we must say that any such
involvement by the taxi industry should be measured in terms of cheaper access
to finance by taxi operators, discounts and savings for operators when
purchasing fuel, better and cheaper insurance products, tyres, spares and other
products that this multi billion industry procures. Current perceptions that
commercial deals entered by SANTACO through its trading company will benefit
only a few and not the majority of taxi operators should be taken seriously and
addressed by SANTACO.

The small taxi operators feel that their interests are not being addressed.
They continue to harbour fears and treat with suspicion government’s efforts to
transform the taxi industry. They view government’s intervention in the taxi
industry as aimed at taking away their business and livelihoods. These small
operators have not been given the information and assurances that when we scrap
their old taxi vehicles they will have access to vehicle finance to purchase
vehicles that meets our safety requirements.

SANTACO should put at the top of its agenda the need to communicate
effectively with these operators. In my meetings with taxi operators around the
country, they still claim that they are not receiving regular reports,
informing them about decisions affecting the taxi industry. We must accept as
the national and provincial leadership of the taxi industry as well as
government at all levels responsibility for the lack of effective communication
initiatives to the industry as a whole.

We must provide taxi operators with latest information and developments on
the taxi industry, provide explanations, listen to their concerns, fears and
suggestions. Most importantly, we should explain to them how the government is
committed to working with the taxi industry and enable taxi operators to
provide safe and reliable public transport services and empower them to run
successful businesses.

The task of uniting the taxi industry remains the critical challenge facing
SANTACO. It is no longer adequate for SANTACO to remind everyone that it is the
recognised body representing the taxi industry. It is a fact that SANTACO is
recognised as the voice of the industry but must work hard and earn the respect
and confidence of the taxi industry as a whole. SANTACO must ensure that its
style and method of work is one that brings together the industry. Taxi
operators look upon SANTACO to solve their problems irrespective of whether or
not they are members of SANTACO. SANTACO must prioritise this matter and
continuously engage the other taxi bodies to come on board. These taxi
structures should be provided with the avenue to influence or be part of
decision making. Therefore, SANTACO should in future look at how the many
voices within the taxi industry could be heard at all times.

We have made remarkable progress over the past two years. Government in
consultation with the taxi industry has prioritised implementation of the taxi
recapitalisation project, effective regulation and empowerment of the taxi
industry. In relation to the taxi recapitalisation process, we are beginning to
see the entry and availability of taxi vehicles that meet our safety standards
especially in the larger vehicles in the band 23 – 35 seater vehicles.

Whilst allowing taxi operators to decide on vehicle type and size,
government still urges operators to consider purchasing bigger vehicles. The
policy of the government is and will remain biased in favour of the larger
vehicles due to efficiencies including in the use of road space and avoiding
congestion. We will prioritise taxi operators who use the larger vehicles when
we open opportunities for the taxi industry to participate in subsidised public
transport services.

I am proud to say that since the start of this process the level of safety
in the industry has improved quite tremendously. Vehicle manufacturers are
doing everything in their power to meet our safety requirements and environment
standards. I have two specific disappointments though with this positive
development.

Firstly, we have yet to make substantial progress with the availability of
new vehicles in the band of 10 – 16 seaters. This is a major concern to us
because the taxi industry is still dominated by vehicles such as the Toyota
Hi-Ace. However, I am confident that we will be able to find immediate
solutions and ensure that there is no vacuum left when we begin to scrap the
old taxi vehicles.

Secondly, the price range of larger vehicles is beyond the reach of many of
our taxi operators. SANTACO must work with us and engage with the banks and
motor manufactures in ensuring that the SANTACO – banks agreement presents us
with various affordable products.

I have instructed the Department to facilitate an urgent discussion with the
relevant stakeholders with a view of developing a practical and comprehensive
strategy in this area.

We intend to move with speed with the scrapping of old taxi vehicles this
year. As you are aware we have planned to scrap 10 000 old taxis by December
2006. Government has issued a tender for the establishment of a scrapping
mechanism in December 2005 and we are hoping to make an announcement in respect
of the award of the ender in early April. We expect that the scrapping and
administration agency will be fully operation by June this year.

I must take this opportunity to commend the thousands of taxi operators who
responded positively and in numbers to our call to apply for the conversion of
their permits into operating licenses. I must specifically thank the national
leadership for their role in mobilising taxi operators to convert their
permits. The challenge is to ensure that the application are processed with
speed by the various operating licensing boards (OLBs) in provinces and issued
to taxi operators within time. The Department has provided resources to the
various OLBs to provide more capacity for the boards to deal with the thousands
of applications received since last year. Let us use the time leading to the 31
May 2006 to encourage our colleagues in provinces such as KwaZulu-Natal to
approach their respective licensing boards and apply for conversion.

I must emphasise that this is the last opportunity and there will be no
further extension to the deadline. We have given operators the opportunity to
convert for over three years and operators who do not apply will definitely
lose their permits.

I must remind SANTACO that I introduced in parliament amendments to the
National Land Transport Transition Act (NLTTA). One of the primary objectives
is to align the law with latest changes to the taxi recapitalisation project.
More specifically, the law provides for 18 and 35 seaters whilst the safety
requirements have introduced three bands. We need to ensure that the NLTTA
supports our (revised) approach to the taxi recapitalisation process.

Another key objective is the effective regulation of the taxi industry. I
must say that we intend to strengthen the ability and capacity of the State to
regulate the taxi industry. We will empower the Minister to introduce
regulations aimed at the effective regulation of the industry. As you are
aware, we will continue as government to pay special attention to the need to
regulate and introduce a cap on the financial contribution of members to taxi
associations.

Members must pay associations annual fees that enable that association to
fulfil its responsibilities. The current practices where cash is collected by
associations in corners or individuals who claim to own certain taxi routes and
ranks is open to serious abuse and is unacceptable to the government. Taxi
operators in all the provinces are pleading and asking to be liberated from
this exploitative situation.

Government intends to introduce before the end of this year regulations
aimed at bringing to an end such practices within the taxi industry. As stated
previously, the routes and ranks do not belong to any individual or to an
association and therefore the charges and collections for this purpose are
simply illegal.

The empowerment of this black controlled industry is nonnegotiable. We will
continue as government to implement various strategies aimed at ensuring that
taxi operators come of age and run proper businesses. We will open up
opportunities especially in relation to bus contracts to ensure that the
participation of the taxi industry is secured. We have begun the process in
provinces such as the Free State and the revised model tender document
governing tenders for bus contracts put as one of its key conditions the
participation of the taxi industry. Of course, the taxi industry must meet
certain standards especially in regard to their tax status as well as the state
and age of their taxi vehicles.

We will also amend the relevant section of the NLTTA to ensure that taxi
operators are given licenses that are for the same period as other subsidised
services such as buses. The age where the taxi industry was treated as an
unequal member of the public transport family is over. Government will also
work with the taxi industry to ensure that the implementation of the transport
BEE charter opens up new opportunities and avenues for further progress.

I am convinced that there could never be genuine empowerment without the
empowerment of the true black entrepreneurs of all time, taxi operators. We
must support them after many years of unfair treatment, discrimination and
indignity of running away from the apartheid police that did everything
possible to suppress then this growing industry.

We understand the suspicion on the part of taxi operators whenever
government tries to intervene but I must assure you that the taxi industry has
got nothing to lose but its chains from our democratic government. The ANC
government is not there to suppress and take away the business the taxi
operators. We would like to see this industry thrive and sustainable as a
business. We would like to see you provide improved services to the large
number of commuters that you help to move everyday. I wish to declare without
any fear of contradiction that the ANC and the government are indeed the true
and genuine friends of the taxi industry of our country.

In conclusion, I wish to remind the leadership and delegates from all the
provinces that the entire taxi industry is looking at this conference for
solutions to the many challenges facing them. Let us not fail them and do this
by providing them with a SANTACO that is more united and determined to improve
the environment within which they operate their businesses.

I am aware that this conference was primarily convened for purposes of
electing the national leadership but expect all delegates to locate this
process within the broader effort to bring stability and transform the taxi
industry for the better.

I wish SANTACO success in its efforts and hope that the outcome of your
conference will strengthen the confidence of the taxi industry and its sense of
hope about the future. The vehicle for this is a united and vibrant
SANTACO.

I thank you!

Issued by: Department of Transport
21 March 2006