Statement by Transport Minister Sibusiso Ndebele following the Government and Taxi Industry Meeting, Midrand

Today marks our formal engagement with the Taxi Industry since the announcement by President Jacob Zuma that we will convene and meet after elections.

It is very important that Government and the Taxi Industry pursue a common agenda with full commitment and determination to provide a sustainable, effective, safe and affordable public transport system to our people.

As indicated by President Jacob Zuma in the State of the Nation Address on 3 June 2009, from today we will kick-start a series of engagements with stakeholders affected with the Bus Rapid Transit (BRT) system. Government’s common’s agenda is to ensure the empowerment of our people. The BRT, which encompasses up to 24 hour operations, can offer a significant entry point for the current taxi industry to become one of the most powerful players to the development of our economy.

If I may ask: Where are Blacks, and particularly Africans, located in the mainstream economy of our country? In my engagement with the taxi industry, I have never understood why the taxi industry, which is Black-owned, controlled and run, still remains at the margins in economic terms. The taxi industry must become part of the mainstream of our economy and ensure the empowerment of our people.

We intend to fully address the concerns of the taxi industry including the following:

* An economic empowerment plan
* Licensing and regulatory problems
* Training and capacity building.

We anticipate and encourage the taxi industry to play a more meaningful role in the future. The Taxi Industry has more than 64% of our commuting services in South Africa and it is the biggest black-owned industry.

The previous administration through its Cabinet, in February this year, approved the following interventions to assist in dealing with the problems the taxi industry had raised including:

* an inflation-linked increase to the scrapping allowance
* a turn-around strategy for the Operating Licensing Boards to improve efficiency
* the taxi recapitalisation programme policy guideline
* a taxi regulatory framework which will be circulated for thorough discussion and
* further discussions are being finalized this year in July with respect to the taxi subsidy mechanism.

We intend to constitute a National Joint Working Group on Public Transport to deal with issues in the taxi industry. Task team members from Government will be provided to the taxi industry by next week. This national Working Group on Public Transport will drive the BRT and other public transport issues.

Of paramount importance, we need to engage in a structured process of meaningful dialogue with the taxi industry. We also need to start negotiations with stakeholders in the first four cities that are engaged in BRT implementation, Johannesburg, Nelson Mandela Bay, Cape Town and Tshwane. The issues for negotiations should include the ownership structure for existing taxi operators and workers, the institutional arrangements for the value-chain benefits and Broad Based Black Economic Empowerment in various areas.

This will include all rapid public transport networks and development of associated infrastructure, such as inter-modal facilities and stations. The taxi industry must be able to take full advantage of business opportunities in public transport associated industries such as manufacturing, maintenance, supply of parts, as indicated in our BBBEE Charter.

Transport operators must broaden their participation beyond public transport, including buses and rail to areas of freight and logistics and aviation services.

I am urging the taxi industry to look at the BRT system as an upgrade of their services and take this opportunity to grow a new revenue system. It is important to note that the BRT system constitutes a small portion of the national public transportation system.

The extent of the planned BRT is less than 170 Kilometres in the four cities of Johannesburg, Cape Town, Tshwane and Nelson Mandela Bay, which is proposed to be developed by 2010.

A further 287 Kilometres is proposed to be developed by 2014, adding the cities of Ekurhuleni, Buffalo City and Durban. A further approximately 1 000 Kilometres is proposed to be developed by 2025, adding the cities of Mangaung, Rustenburg and Polokwane. This amounts to a total of approximately 1 400 Kilometres by 2025. This is a fraction of the hundreds of thousands of Kilometres of public transport operated routes in South Africa.

As you are aware, the Confederations Cup kicks off on Sunday, 14 June 2009. We have put plans in place to ensure an effective and efficient transport system for our fans and to make the event a huge success. Government and the whole nation have pledged that the 2010 FIFA World Cup will leave a proud legacy from which our future generations will benefit for many years to come.

Media Contact:
Logan Maistry
Cell: 083 644 4050

Issued by: Department of Transport
11 June 2009

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