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DA: Statement by Stuart Farrow, Democratic Alliance shadow minister of transport, welcoming the suspension of the toll tariff (23/02/2011)

23rd February 2011

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The Democratic Alliance (DA) welcomes the decision by the Minister of Transport to temporarily suspend the introduction of the 66 cent per kilometre toll fee on the Gauteng Freeway Improvement Project (GFIP).

We trust that this three-month suspension is not just a ploy, three months ahead of the local government elections, but rather an honest attempt to stop the implementation of this misguided toll plan.

There is no doubt that these toll costs would have increased the cost of transporting goods and services, and the pockets of the poor would, in turn, have been affected disproportionately.

The DA has for many years through the budget debates requested the Department of Transport to increase the grant funds to the South African National Roads Agency Limited (SANRAL) so that they could avoid having to take this kind of action. Borrowed money needs to be paid back and the lack of grant funding over the last 10 years has seen an increase in the number of toll roads in our country. This represents a form of excessive taxation, as the fuel levy, vehicle licensing and emission taxes, VAT, toll costs and the banking charges involved in the e-tagging system all tax the transport system and its users.

The Minister now needs to take this opportunity to reconsider funding models in order to allow for a reduction in the proposed toll fees. To this end, the DA believes that a meeting of all stakeholders involved in the transport industry needs to take place, to contemplate alternatives to the GFIP toll fees.

The DA suggests that the following be considered in respect of the SANRAL loans:

1. Renegotiate the term of the loan to reduce monthly repayments.
2. Consider VAT exemption on toll fees.
3. Investigate the phasing in of revenue from fuel levies accruing to the Provinces to offset the loan.
4. Exempt all public transporters using the GFIP from toll fees.
5. Source capital from current budgets of the Department of Transport and Gauteng Province to redeem the loan.
6. Increase investment in public transport at provincial and metro levels over and above that already being spent on the Gautrain.

All these proposals and any other innovations should be factored into the current SANRAL business plan with a view to reducing the toll fees by at least half of the current fee model being put forward.


 

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