Honourable House Chairperson
Chairperson of the Portfolio Committee on Transport
Minister of Transport, Ms Sindisiwe Chikunga (MP)
Ministers and Deputy Ministers
Director General of the Department of Transport
Honourable Members
Fellow South Africans
I am honoured to be given this opportunity to debate in this budget vote before this house,
Last month marked 30 years since the brutal killing of Comrade Chris Hamilton Hani by the enemies of democracy. This heartless killing robbed us of a leader, a father and a visionary. We have not forgotten!!
We also learnt with shock and horror of the passing of 14 people in the last few days, 6 of these were killed on the N2 between Mosselbay and Voorbaai in the Western cape on the 13 th of this month and 32 people were seriously injured
8 people were killed on the 14th near Sibangweni outside Umtata on the direction of Tsolo and Qumbu. We extend of heartfelt condolences to those families and wish those injured a speedy recovery.
Road traffic crashes, injuries and deaths not only have a terrible impact on individuals but also have an impact on communities and the country’s financial and health resources. Road crashes have the effect of not only causing grief and suffering but has a potential to ruin our country’s wealth due to the high costs associated with health care systems and loss of productivity and prosperity with economic repercussions.
Road Safety
House Chair and hourable Members,
(In the words of President Obama, “The cynics may be the loudest voices – but I promise you, they will accomplish the least”)
The task of achieving a reduction of 25% of road fatalities looms large and requires of us collectively to employ a different approach to dent this stubborn phenomenon on our roads.
Road traffic Infringement Agency
After successful piloting of the AARTO we were set back by the Gauteng north high court from the National roll out, we however remain optimistic that the constitutional court will rule in our favour as to the constitutionality of the AARTO Act.
Accordingly, Expenditure for the RTIA is expected to increase at an average annual rate of 4.5 per cent from R487 million in 2023/24 to R555.6 million in 2025/26 with goods and services accounting for an estimated 60.8 per cent of the total spending.
The agency derives its revenue mainly through administrative fees and transfers from the Department.
Road Accident Fund
The RAF has been in the news recently for all the wrong reasons albeit having done exceptional work in compensation road crash victims. We are making good progress in resolving all the issues in this year.
The Road Accident Fund has a legislative mandate to compensate road users for losses or damages caused by motor vehicle crashes within the Republic.
The total value of claims paid out over the MTEF period is expected to decrease from R 43.3 billion 2023/24 to R 35.9 billion in 2025/26.
The levies through which the RAF derives some of its income are expected to increase at an average annual rate of 0.5 per cent in line with projected increase in fuel sales.
Railway Safety
Honourable Members
Railways provide a safe and sustainable form of transport worldwide.
Whilst the actual level of safety achieved can vary widely even within economically developed areas such as the European Union, railways are typically amongst the safest modes of transport.
Inevitably this level of safety comes with an associated cost and balancing safety performance and cost is one of the key global challenges for the rail industry.
Rail Safety Bill
The Rail Safety Bill seeks to improve the regulatory framework regulating railway safety to improve the safety of passengers and freight. It seeks to repeal the National Railway Safety Act, 2002 (NRSR).
In addition, the Department seeks to improve competition in the rail sector by finalising the private sector participation framework by March 2024 for implementation by March 2025.
Railway Safety Regulator
The Railway Safety Regulator (RSR) continues to elevate the safety of our railways to global standards. To this end, the RSR will be hosting international rail experts from at the International Rail Safety Council here on South African soil from 01- 06 October 2023 in Cape Town.
The Railway Safety Regulator’s primary aim for hosting the Council is to sensitise international delegates about the opportunities, challenges and needs concerning investments in rail infrastructure, rolling stock, technologies, and research.
In this year the RSR focuses on its primary business of issuing safety permits to railway operators. We will conduct 48 safety initiatives in 2023/24. These include education and awareness campaigns, community involvement programmes and training for safety ambassadors and we are going to “Dzingidzingi and pofadder”.
Expenditure is expected to increase at an average annual rate of 3.6 per cent, from R263.2 million in 2022/23 to R292.5 million in 2025/26.
The regulator expects to generate 70 per cent (R591.1 million) of its revenue over the period ahead from administrative fees and the remainder through transfers from the department.
Climate Change Mitigation
The development of transport systems is however not exclusive of the protection of the environment and has thus required effective steps towards climate change mitigation, pollution control, and building climate change resilient infrastructure.
The development of the transport sector must happen in tandem with a implementation of a clear strategy to mitigate climate change impacts, and in our case to reduce emissions deriving from transport activities.
We must continue to contribute to global attempts to mitigate adverse climate conditions globally. This has required that we ratify conventions to that effect. We will continue to monitor what progress is being made across modal areas to reduce emissions and pollution.
Ports Regulator and STER Bill
The passage of the Economic Regulation of Transport Bill requires of us to play catch up in the implementation plan as we are 2 years behind schedule in implementation of this policy intervention. We will therefore commence with the work that will enable quick turnaround times in the implementation of the Act, once signed into law.
The Ports Regulator will morph into the Transport Economic Regulator, we will therefore attend to the administrative issues that will ensure our readiness to hit the ground running upon the promulgation of the law.
We will immediately get down to work to ensure that once the bill is signed into law, the Economic Regulator is fully operational within reasonable time.
One of the Departments priorities in this financial year is the development of effective economic regulation mechanisms for the transport sector to increase competitiveness and access to transport modal networks.
We acknowledge the potential of the maritime transport sector to create jobs and transform the sector by among others bringing in new entrants and exploiting the whole value chain for the achievement of economic transformation.
To this end the Ports regulator of South Africa will prioritise the reduction of costs for maritime as a priority sector by increasing efficiency and effectiveness of our ports.
Expenditure is expected to increase at an average annual rate of 2.9 per cent, from R44.5 million to R48.5 million in 2025/26.
Integrated Transport Planning
Government continues to improve the lives of South Africans and our contribution has been and will continue to be in the area of mobility of the citezens. In the outgone financial year we continued to monitor the performance and roll out of BRT system which is but a part of the IPTN and not the IPTN as a whole.
In this year we are working on assisting the three metros who have been suspended to get back to the system for the betterment of the lives of the people in those cities (Msunduzi, Buffalo City & Mbombela).
Furthermore the Department is focussing on the following key interventions but not limited to;
- Finalising the National Public Transport Funding model the key thereof is is to subsidies the user irrespective of the mode they use
- We will develop and operationalise a National Public Transport Regulator (NPTR) which will be fully responsible for all functions envisaged in the NLTA amongst which is issuance of tourism operating licences and oversee Provincial regulating Entities
- Full implementation of the recommendations of the review of the Taxi Recapitalisation Programme
I am pleased to announce to the citezens of Mbombela, Buffalo City and Msunduzi that we have resolved to work with these cities to ensure they are readmitted and benefit in the PTNG (BRT) in this year.
We commit to a more interventionist approach in our monitoring and evaluation function.
Conclusion
In conclusion Chairperson, as we wrap up this debate today I wish to quote the words of President Obama at the occasion of his address to UN general Assembly in 2014;
“We choose hope over fear. We see the future not as something out of control, but as something we can shape for the better through concerted and collective effort”
In the words of President Obama “We did not come to fear the future. We came here to shape it “
God Bless South Africa and its People.
Thank you
