Media statement by Transport Minister Sibusiso Ndebele on the Transport Budget vote debate held in the National Council of Provinces, Cape Town

We will present the 2010/11 Transport Budget Vote to the National Council of Provinces at 16h30 today, 22 April 2010 and copies of the address will be disseminated then. Key focus areas include road infrastructure maintenance challenges in provinces and municipalities, the development of rural road infrastructure as well as recent protests by the taxi industry.

Road infrastructure challenges
The following figures provide a summary of schools and hospitals without any road access as at this year (2010):
* Eastern Cape - 859 out of 5 401.
* Free State - 28 out of 2 472.
* Gauteng - 2 out of 2 202.
* KwaZulu-Natal - 403 out of 5 331.
* Mpumalanga - 17 out of 1 793.
* Northern Cape - 9 out of 473.
* Limpopo - 129 out of 4 131.
* North West - 47 out of 2 257.
* Western Cape - 16 out of 1 577.

Add to these, 31 clinics around the country which do not have reliable access by road. These include the Eastern Cape (21 out of 695) and KwaZulu-Natal (five out of 485), while other provinces have between one and two clinics without access to a road.

In addition to no road access, we have challenges with regard to road maintenance backlogs. The total paved and gravel network at provincial level is 184 816 kilometres. At least 40% of this network has reached crisis point when it comes to maintenance. The total paved and gravel network at municipal level is 339 849 kilometres. We are developing mechanisms to quantify the backlog at municipal level in order to have accurate localised numbers.

What we know is that our country needs R75 billion over the next five years to address this decline in road infrastructure, and this has been continuously emphasised since 1994.

Dedicated road maintenance fund

We have identified the lack of dedicated funding for road maintenance, poor asset management and capacity challenges in many municipalities and provinces as some of the factors which contribute to poor road conditions. Under-investment in maintenance of road infrastructure is a huge challenge.

To address this, we are planning to develop a ring-fencing mechanism through the creation of a dedicated road maintenance fund. This strategy is not only about sourcing additional funding for maintenance, but also ensuring that existing funds are used for the purpose they were intended for.

The strategy is also about better management of our road assets. These measures will not only address the deterioration of our road infrastructure, but will also create thousands of jobs and contribute to the growth of our economy.

Rural roads development

The second intervention is to ensure the provision of proper road infrastructure in rural areas, in order to ensure access to schools, clinics and economic opportunities. This intervention is aimed at rural communities who, because of a lack of roads, are kept away from being part of economic activity.

The Rural Access improvement programme is part of the comprehensive Rural
Transport Strategy for South Africa (RTSSA). Our Rural Transport Strategy also addresses the following rural development challenges:

* Building of bridges and non-motorised transport facilities
* Developing and implementing integrated public transport networks for regular transport services
* Developing and upgrading the airport network with proper road-link infrastructure and services
* Revitalising the rural railway operations by expanding rail passenger services and freight operations to rural areas
* Ensuring rural transport safety and law enforcement.

This will be in addition to the budget allocation through the Expanded Public Works Programme (EPWP), which is one of our contributions to job creation through the implementation of labour intensive projects.

The national Department of Transport remains committed to supporting and monitoring the implementation of the EPWP by provinces. The following amounts are allocated to road development in the 2010 MTEF EPWP allocation:
* R2.2 billion in 2010/11
* R2.8 billion on 2011/12
* R3.3 billion in 2012/13

Rural road infrastructure remains essential for communities to access economic opportunities and services. To kick-start this process, we have secured initial funding of R1 billion dedicated to rural road infrastructure. We will also be institutionalizing our rural road infrastructure and services portfolio through the establishment of a dedicated agency. A project management team and unit have been appointed to drive this programme.

Public Transport

An efficient, reliable and affordable public transport system is at the centre of our transformation agenda. This agenda is informed by an understanding that there are defined roles for each of us as government, public transport operators and commuters.

The provision of public transport is primarily a public responsibility, not for gain.

We use various instruments such as licensing, municipal transport planning and subsidisation to ensure universal access for commuters.

A licensing regime, through the issuing of operating licences, is the central instrument for government to ensure a reliable and efficient public transport system. This responsibility has been executed by provincial licensing authorities.

We have decided to restructure the licensing system such that our inter-provincial operations are licensed through a national regulatory authority - the National Transport Regulator. Metro Councils with capacity will be tasked with the licensing responsibilities within their cities. This will relieve provincial authorities to focus on their provincial inter-city operations. This institutional re-alignment will streamline our licensing processes and will be one of our major focus areas this financial year.

Role of public transport operators

With regards to the recent protest action by certain taxi operators, we must state the following: Whilst we acknowledge that taxis provide public transport services for gain, we must emphasise that they provide an essential service. It is a contract between operators and commuters.

It is because of this principle that withdrawing services by operators, without due consideration of the interest of commuters, is unacceptable. This amounts to breaking the contract or covenant with commuters. We are engaging the taxi industry on this basic principle. We cannot continue frustrating commuters simply because there are complaints against some enforcement agencies. Commuters have a legitimate expectation that operators who have been granted a right to provide transport are available at all times.

Our engagement will have to result in an agreement on a pledge which commits all of us on procedures and instruments to regulate our rules of engagement as well as our rights and responsibilities.

It is against this backdrop that, in March 2007, Cabinet approved the Public Transport Strategy and Action Plan 2007 to 2020. The key pillars of the strategy are the transformation of public transport through the acceleration of Modal Upgrade and the attainment of Integrated Rapid Public Transport Networks.

Phase one of the Action-Plan targets 12 cities and six districts for initial implementation of Integrated Rapid Public Transport Networks between 2010 and 2011. Transformation of public transport is incomplete without taxis, which move more than 60% of our daily passengers. The National Joint Working Group on Public Transport (NJWG), which includes the leadership of the taxi industry, government and civil society, has the mandate to address all matters of concern pertaining to the taxi industry.

Our integrated approach to Public Transport comprises of the Passenger Rail Agency of South Africa (PRASA) Rail Priority Corridors, the Gauteng Rapid Rail Link as well as the Bus Rapid Transit Corridors, recapitalised and regulated taxi services, including mini and midi-bus taxis, as well as metered taxis.

The three spheres of government are already working closely together to ensure the speedy implementation of this plan. The rural districts are also expected to develop their network planning once capacity and financial resources have been allocated. The national Department of Transport will monitor implementation and management of intelligent transport systems; accessible transport planning and rural transport network planning in order develop a National Passenger Road Plan. This plan must serve as a framework for the integration of a road-based public transport system and, most importantly, as a guide in transforming the subsidised commuter bus regime into an integrated road-based public transport system.

Enquiries:
Logan Maistry
Cell: 083 6444 050

Issued by: Department of Transport
22 April 2010

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