T Mhlahlo: Launch of new taxi operating licence

Safety Liaison, Roads and Transport MEC Thobile Mhlahlo’s
speech at the launch of the new taxi operating licence, NG Kerk - Gonubie, East
London

10 January 2006

Let met first take this opportunity to say “Happy New Year” to all of you
and whish you a successful and prosperous year, which is dominated by peace and
comfort. I would like to also congratulate all the members, who have been
appointed to the Provincial Management Council and wish them a success in their
endeavours to change the history of the taxi industry into a legacy that would
benefit future generations.

Today marks a historic turning point in the manner in which the taxi
industry operates in this country and our province. In the past, our radius
permit system, to a certain extent, contributed to the conflicts within the
taxi industry. The new Operating Licence System that we are here to launch
derives from Section 32 of the National Land Transport Transition Act (NLTTA)
22 of 2000, which states that all permits must be converted to operating
licenses by the date determined by the Minister in consultation with the MECs.
The process of converting the radius permit to the new operating licences,
which focus on exact corridor of routes, had started in 2002 after the
promulgation of the NLTTA.

The deadline for application of these licenses was the 30 November 2005, but
the National Department of Transport is considering extending this deadline to
give taxi operators sufficient time to convert their permits. All taxi
operators are expected to convert and have operating licenses by May 2006.
Since the start of this process, we have received 5 996 applications. About 2
488 applications have already been approved and we hope that this number will
increase before May 2006. We expect this number to increase rapidly; because we
have 13 180 registered taxi operators and 18 357 registered taxi vehicles in
this province. We have identified 1883 routes for the implementation of this
system. With the implementation of the Taxi Recapitalisation Project due in the
new financial year, operating licences will be another prerequisite for taxi
operators to participate in the project.

As government, we believe that this new system will minimise conflict and
strife within the taxi industry. Today, we are taking a giant leap forward
towards uniting the industry paving way for a peaceful atmosphere in our
province and to prepare ourselves for greater things to come. It is now time
for the taxi industry to take its rightful position in the economy of this
country. Government has allocated R7.7 billion for the development of the taxi
industry through the Taxi Recapitalisation Project. This demonstrates
government’s seriousness in pursuit of a stable, regulated and formalised taxi
industry, which has been neglected for many decades by the apartheid
regime.

We recognise the critical role played by the taxi industry in the provision
of public transport service in this country. Research shows that almost 70% of
our people are ferried by taxis daily in this country, which means the taxi
industry plays a pivotal role in the provision of the public transport service.
We are therefore obliged to intervene and transform this industry into a
business that is run according to the principles and policies like any other
professional business. We need to see more women taking part in this industry
and ensure that we build a solid black business base that leads to the
realisation of our goal of a country, where its wealth is shared amongst all
citizens, irrespective of race and gender.

Today, the Eastern Cape Department of Roads and Transport is demonstrating
its readiness for the implementation of the Taxi Recapitalisation Project. We
are ready and nothing can stop us now! Cabinet has also approved the
publication of Safety Requirements in the form of Regulations, and any new
vehicle that enters the taxi industry without meeting these Safety Requirements
with effect from 01 January 2006 will not be licensed to operate as a taxi. In
an effort to empower the taxi industry, we have already trained more than 300
taxi operators in business management in an effort to prepare them for the
implementation of the project. Before the end of this year, we will conduct
training for all taxi operators on HIV/Aids, which is already threatening
entire transport sector.

The Department is further preparing to enter into partnership with all the
companies that stand to gain in the Taxi Recapitalisation Project together with
tertiary institutions that will offer training to our taxi operators in order
to become fully-fledged business people. All these interventions augur well
with our preparations for the 2010 Soccer World Cup to take place in this
country and this province. The taxi industry, as a key public transport service
provider, needs to be ready for this “world class football showpiece”. We are
all expected to contribute to the success of this tournament.

As government, we would like to see the taxi industry “united and solid as a
rock” in order to be able to seize all the opportunities presented to it by our
young democracy. Let us take such opportunities with vigour and ensure that no
one of us will be left out. I thank you.

Issued by: Safety Liaison, Roads and Transport, Eastern Cape Provincial
Government
10 January 2006
Source: Eastern Cape Provincial Government, (http://www.ecprov.gov.za/)

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