Honourable Chairperson, despite frequent acknowledgement of the National Development Plan, the following aspects in transport hamper economic growth and development:

    Indecision & lack of policy implementation;
    Inadequate urban and – rural/urban mobility;
    Insufficient levels of public/private sector collaboration;
    Lack of infrastructure investment;
    Shortage of critical skills; and
    Performance issues in key institutional structures.

Therefore, Honourable Chairperson, it is with great concern that we take note of severe budget reductions. Nearly 84% of the budget cutbacks represent three crucial developmental grants:

    Provincial Roads Maintenance Grant (35% cutback);
    Public Transport Operations Grant (18% cutback); and
    Public Transport Network Grant (31% cutback).

Confusingly – while public tax contributions and levies are increased – 91% of these cutbacks will be directed to Roads, Public Transport & Rail.

This will set us back in a very bad way.

For example, in the road freight, commuter bus and aviation industries, most equipment and spares are imported and are therefore vulnerable to exchange rates. In the road and aviation industry as much as 60% of input costs are US Dollar related, which is not conducive to supporting a stable and business-friendly environment.

The 35% budget cut to the Provincial Roads Maintenance Grant is a massive step in the wrong direction, and will severely impact on the ability to ensure least-cost freight transport, road safety and the facilitation of definite future traffic growth. In the same manner, major elements in the National Freight Logistics Strategy have still not been actioned.

Although most of your focus is on the corridors to “re-balance” the road/rail modal shares, we have an insufficient focus on rural services. According to a study conducted by Prof. Jackie Walters of the University of Johannesburg, tonnage transported on freight corridors by road increased by 75% over 10 years, whilst Tonnage transported on rural roads increased by 136% over 10 years.

If rail is able to improve its services it will result in a natural movement of all types of cargo back to rail as a preferred mode of transport. This is desirable and we welcome this.

Public taxes – like the fuel levy – constantly fall prey to fixing irresponsible practice. For example, in his February budget speech, Finance Minister Nhlanhla Nene announced a 50c increase per litre of fuel. This equates to a 48% increase, when over the last 7 years a total of 14% was found to be sufficient. Apparently no investigation nor financial scrutiny was undertaken to notice the deliberate inflated legal cost in the expense column, nor was it questioned why 530 people were employed in one financial year. Thus the RAF’s staff contingent increased by 25% in one year, costing the taxpayer well over R220 million per year, this despite the statuary mandate of the RAF remaining unchanged since 1996.

Moreover, Honourable Chairperson, it is mind boggling that the CEO of an actuarial insolvent agency should earn more than R5 million and receive a performance bonus of over R1 million. This is not only more than our own President earns, but in fact more than what the Presidents of the United States, United Kingdom, Canada, Germany, France and China earn.

The Minister cannot deny our effort to discuss the issue of misrepresentation since we directed specific questions about this in the Portfolio Committee on 3 March 2015. The simple fact is that Minister Peters and the RAF Board refuse to acknowledge wrongdoing and chose to counter attack before considering any evidence. Sadly, we have received a shocking flow of allegations of more fraud, scandals and corruption reported via the toll free helpline which we launched on Wednesday last week. It is quite apparent that a thorough investigation is crucial. Many victims, employees and stakeholders testify to this due to the free hand and unchecked manner of the current administration. We again appeal for a full investigation.

In a broader sense we reject any budget cuts that result in less revenue available to improve the lives of all South Africans. We demand accountability for our taxes and levies – and we will continue refusing to finance performance bonuses of publicity stunt proportions.

I thank you