P Vilakazi: South African National Taxi Council gala dinner

29 June 2007

The past six years of SANTACO's existence have brought huge changes in both
the taxi industry and the transport sector in general. To government and the
taxi operators, the establishment of SANTACO marked a milestone in the
transformation of our society in the post apartheid South Africa. To the
commuters, it brought about recognition of commuter dignity and respect of
commuters as main players in the taxi industry.

For a first time in many years, the taxi industry is recognised as an
important means of transport that requires proper transformation so that it
becomes a viable business. It is also being integrated into the broader
transport system of our country. This is the idea that gave birth to SANTACO
and this structure is undoubtedly changing the taxi business for the
better.

For many years the taxi industry has been described as unstable and of high
risk and indeed many lives has been lost in the past as a result of taxi
violence. But since SANTACO was formed, the industry has become more stable and
attractive. We are beginning to see the development of various business models
that will empower the taxi operators across the country

A large amount of efforts are now invested into business innovations instead
of conflicts. This is the reason why the industry has transformed itself into a
more formal business than ever. As a transport sector that enjoys a lion's
share of the commuting public, your services should not be limited to
transportation only. While transporting people to their various destinations,
you should be selling them various other products and services through mobile
advertising on your vehicles. Instead of giving money to other service
providers, you could establish your own service stations which will service
your fleets while also adding something to your coffers.

This will require you as taxi operators to form partnerships with other
industries. I'm told you have already started doing this and I am assured that
more and more partners are willing to come forward. This is indeed a positive
development in this industry.

Minister Jeff Radebe has previously told you that 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.
This is why we have worked together with you 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 six years. In the North West
province, we are proud that government and taxi operators have long reached
common understanding on the new approach. I have already met with the executive
committee of the provincial taxi council in the past three weeks to reintroduce
myself to them. I am happy that they have welcomed me back as the MEC and
pledged to continue with the programmes we started together some years
back.

The provincial executive has expressed satisfaction at the manner in which
the Taxi Recapitalisation Programme has to date been implemented in the
province. I am particularly convinced that the success of the programme is
attributed to co-operation between government and the taxi operators.

I am proud to say that since the start of the taxi recapitalisation process,
at least 13 340 applications for conversion of permits to operating licences
have been received in the province. At least 12 502 of these have been verified
and 184 were found to be invalid. Only 17 are still to be verified. We have
managed to approve 12 338 of these applications and issued 7 475 operating
licences. We are still to issue the other 5 017.

However, we started a bit late with the scraping process. We started in
March this year while other provinces started in December last year. But we
have already registered remarkable progress since then. We have been scraping,
on average per month, about 178 old taxi vehicles. We have now scrapped a total
of 714 old taxi vehicles and paid R35,7 million to taxi operators in the form
of scrapping allowance. Our province currently ranks number four, after Eastern
Cape, KwaZulu-Natal and Limpopo in this process despite the fact that we
started late.

The Department has established a database of legal taxi operators. In my
meeting with the executive committee of the provincial taxi council, we have
agreed on maintaining peace in the industry while showing an attitude of zero
tolerance on illegal operations. The database that we have established for
legal operators will enhance law enforcement in dealing with illegal operations
which have been a major contributor to taxi conflict amongst operators in the
past.

On another positive note, we have also set aside R30 million to help the
provincial council start an investment wing of its own in order to diversify
business operations for its members and help increase their income and make
their businesses more sustainable. The establishment of Taxi Retail
Installations (TRIs) is also steadily gaining momentum in the province. This is
an initiative that will help taxi operators establish one stop shops comprising
filling stations, service and repair centres owned by the taxi co-operatives to
service the taxi industry.

To establish these centres, the co-operatives must, amongst other things
secure business sites ideally nearest to taxi ranks. The taxi industry has
already built strategic partnership through co-operation agreements with
24-hour fuel outlets throughout the province whilst negotiating the
establishment of TRIs.

The industry has also concluded a strategic partnership with a property
development company and various sites have been identified for the development
of integrated public transport and commercial centres.

This initiative has significant positive implications since it is assisting
in the development and funding of certain taxi rank facilities as well as
infrastructure for commuters.

This progress has helped to diffuse unfounded allegations perpetuated by
some people that the transformation of the taxi industry was all about forcing
government's will on the taxi industry. It is also important that we together
recognise that we would not have achieved this if the whole policy was
faulty.

I therefore request the council to intensify training for taxi drivers and
owners on issues like customer care and executive management as agreed before.
I therefore pledge our total commitment in ensuring that this industry is
further transformed into an attractive business. And I have every confidence in
the leadership of SANTACO.

In conclusion, I want to 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 leadership for their role in mobilising taxi operators to convert
their permits.

I thank you!

Issued by: Department of Transport, Roads and Community Safety, North West
Provincial Government
29 June 2007
Source: North West Provincial Government (http://www.nwpg.gov.za/)