Honourable, Speaker
Honourable members
Distinguished guests
Ladies and gentlemen.
South Africa has an economy in transition that requires the implementation of economic infrastructure to grow the economy and create jobs in the country to fight the scourge of unemployment and inequality.
In terms of the overall infrastructure programme, it is important to note that government took a policy decision to proceed with the infrastructure programme, despite the global economic crisis. Without the required infrastructure for roads, airports, electricity, water, etc., it is impossible to provide an environment for investment and economic growth.
The financial reality for South Africa is that there is a growing budget deficit that, if allowed to increase, will be detrimental to the economy and growth prospects of South Africa. In terms of this reality, it is government policy to find additional sources of funding to assist the fiscus to meet the disparate demands made on it so that the social expenditure can be maintained, and implement these infrastructure projects. In order to meet these challenges these infrastructure projects have to be funded through the selective use of a user charge. It is the objective of government to implement prudent policy that will result in long term benefits to the country.
This policy, as reflected in the White Paper for transport, as well as the National Development Plan makes provision for alternative funding sources from the capital markets and the user pay principle, to implement road development projects. In the context of the overall road network in South Africa that exceeds 700 000 kilometres, a very small proportion is tolled. Only 3200 kilometres, approximately 17% of the total national road network of 19000 kilometres, is tolled. The National Treasury therefore still makes available funding for the bulk of roads in South Africa, and tolling is used selectively to provide high standard infrastructure earlier than that can be provided through tax based revenues.
Funding the Gauteng Freeway Improvement Project through a user charge has enabled the upgrading of some 201 kilometres of roads that would otherwise would have taken in excess of 12 years to fund with its concomitant loss of opportunity. Furthermore, it also ensures that funds for future maintenance and operations are available. Without this project, traffic in the province would have been in gridlock by now.
Members may be interested to note that the traffic volumes on the Gauteng freeways increased with between 27% to 42% for different freeway sections, since 2006. On the N1 between the Allandale Interchange and Buccleuch interchange, morning peak hour traffic increased from 9 000 vehicles in 2008 to 13 000 vehicles in 2013. An independent survey done by a company providing navigation services showed that the improvements have led to a 50% reduction in travel times on the N1 between Johannesburg and Tshwane in peak hours.
This translates into huge savings to the economy (prior to this a study conducted by the South African Chamber of Commerce and Industry showed that the loss to the economy due to congestion was in the order of R10 million per hour) and a reduction in the carbon footprint.
The electronic toll collection system, popularly known as e-toll, is a mechanism for the collection of tolls without disturbing the flow of traffic at least cost. This system is already in use in the east of Pretoria on the Platinum toll highway and is programmed to also be implemented at other existing toll plazas.
Notwithstanding the consultations since 2006 with various stake holders including NEDLAC, government again engaged with stakeholders at various occasions through various structures over the past two years regarding the Gauteng Freeway Improvement Project. These engagements were aimed at finding ways to mitigate issues that were raised by stakeholders and the public. These engagements took place via a Steering Committee that was appointed by my predecessor and the Inter Ministerial Committee appointed by Cabinet and chaired by Deputy President Motlanthe. Engagements took place with organised labour, religious leaders, stakeholders representing road users (AA, Road Freight Association, OUTA) and directly with the public.
In order to assist the public and business, various measures were announced by government which include the following:
- the exemption of qualifying public transport vehicles that are providing commuter public transport services
- a financial contribution of R5,7 billion by National Treasury that enabled the reduction of toll tariffs
- increased e-tag user discounts
- the introduction of monthly toll caps for qualifying vehicles (vehicles registered and fitted with e-tags) and
- increased time of day discounts, especially for heavy vehicles.
These discounts will also serve as a travel demand management measure that will encourage heavy vehicles to travel outside peak periods.
The Transport Laws and Related Matters Amendment Bill 2012 will enhance the legislative framework for the implementation of projects with electronic tolling, and will assist to improve the effectiveness of toll operations and enforcement. The Bill has been necessitated by the development of the Gauteng Freeway Improvement Project (GFIP) as well as the future plans for the development of road infrastructure in the Republic.
The South African National Roads Agency Limited (SANRAL) was established in terms of the South African National Roads Agency Limited and National Roads Act 1988 (SANRAL Act). The SANRAL Act was brought into operation on 1 April 1998. It established SANRAL to manage and control the Republic’s national roads system and to take charge of the development, funding, maintenance and rehabilitation of national roads within the framework of government policy. The existing Act further provides for the establishment and operation of toll roads, including provisions for electronic toll plazas.
Apart from the physical infrastructure, the GFIP will result in the operation of a road network that involves the utilisation of “intelligent” transport systems. An important component of the network is the Electronic Toll Collection (ETC) system. The Bill is essential to enhance the appropriate implementation of the ETC system.
Honourable Speaker, the Bill seeks:
- to provide more effectively for the collection of toll
- to amend the Cross-Border Road Transport Act, 1998 (Act No. 04 of 1998) in order to empower the Cross Border Road Transport Agency to assist SANRAL in the collection of tolls at the border posts
- to amend the SANRAL Act to insert a definition of “owner”
- to further provide for the differentiation in respect of the amount of toll that may be levied
- to provide that the regulations made by the Minister of Transport must be published by notice in the Gazette calling for comments from members of the public
- to empower the Minister of Transport to make regulations relating to specified toll related matters
- to provide for certain presumptions relating to the driving, operation and use of vehicles on toll road and the use of electronic evidence to prove an alleged contravention of the SANRAL Act
- to exclude the levying and collection of toll from the ambit of the National Credit Act, 2005 and
- to amend the contents of the SANRAL Act.
The non-collection of tolls may impact negatively on the ability of SANRAL to raise capital for infrastructure development projects. The Bill must be seen in the context of government’s plans to fund its envisaged infrastructure programme. SANRAL has issued bonds to fund the project of R20 billion plus capitalised interest amounting to approximately R3.4 billion that need to be paid from the toll revenue. Failure to collect tolls and repay the bonds would have very serious financial implications for SANRAL and for the National Government which approved guarantees in respect of most of SANRAL roads.
Inability to collect revenue would damage the credit reputation amongst investors, who may price the bonds higher to cover this risk. This in turn would have a negative impact on both SANRAL and the government’s credit ratings.
Honourable Speaker it would be remiss of me not to express my disappointment at those commentators and politicians who questioned the integrity of the judiciary. These are the very same people who cry foul when the majority party in government allegedly questions a judgment. There is a difference between commenting on a judgment and questioning the integrity of the judiciary. I urge all to desist from such practice and stop attempting to politicise the judiciary……..it is an ill wind that blows…..
A draft amendment Bill was published in Government Gazette No. 31715 on 19 December 2008 and again on 15 March 2010 for public comment. This bill was published for public comment by the Transport Portfolio Committee on 15 August 2012. The Transport Portfolio Committee invited public comments and also invited parties to make representations to the committee.
Once the Bill has been approved by Parliament and assented to by the President, it will be published in the Government Gazette for general information. Honourable Speaker, I request the National Assembly to pass the Bill.
I thank you.
