Programme Director;
MEC’s of Safety and Transport,
MEC Saliva Molapisi;
Mayor of Kgetlengriver Municipality;
Other Mayors present,
Municipal Councillors;
Traditional Leadership;
ANC Leadership,
NW Cosatu;
NW SANCO,
SANRAL leadership;
Bakwena Consortium;
Members of the media;
Ladies and gentlemen

South Africa has the tenth largest road network in the world – more than 750 000km. Of these, South African National Roads Agency Limited (SANRAL) is responsible for 21 403 km which make up what is known as the national road network.

SANRAL receives funding from the national fiscus for the maintenance of the non-toll road network – which currently is 18 283 km. The other 3 120 km make up the tolled part of SANRAL’s portfolio.

The current estimated road backlog funding is R197 billion, with an annual requirement of R23.2 billion to address the backlog over ten years. Furthermore, some R66 billion per year is required just to sustain our roads – pushing the required budget to R89 billion per annum.

But actual spending on roads across all government levels was less than half this - only R44 billion. As a result of budget constraints, the non-toll budget baseline allocated to SANRAL by the national treasury from the 1990s to 2011 was below the requirement for sustaining the national road network. In 2012 it was nearly sufficient, but still not enough to address the backlogs.

Since the 1990s the non-toll allocations have been insufficient to undertake any road expansions or new construction projects. The budget allocation for non-toll roads this year was R12.5 billion while the planned major SANRAL road expansion projects over the next ten years will cost R120 billion. Clearly the funding from the fiscus is not enough – which brings us back to tolling.

To address the road maintenance and capacity expansion backlog will require an additional R2.17 per litre of fuel. This is R4.34 in 2014 money terms, plus inflation over ten years.

Ladies and gentlemen,

Thank you for joining us today as we announce far-reaching changes with regard to the implementation of the new Swartruggens Toll tariffs.

We are announcing a dispensation that is fair, affordable and sustainable.

This new dispensation is the product of extensive engagement between national government, the North West provincial government, labour and unions, particularly COSATU North West. This came as a result of the Department of Transport having appointed a Task Team in 2012 chaired by the Transport Director-General which had members from SANRAL, CBRTA, the North West Department of Roads and Public Works, North West provincial COSATU, SACP, ANC, SANCO and the Taxi Industry to consider the request from communities regarding discounted toll fees.

The new dispensation on discounted tariffs demonstrates that we are both a responsive and a responsible government.

This new tariff structure, addresses the concerns of North West motorists, particularly those from low- and middle income households, who resides within the agreed radius while ensuring that our approach to the construction and maintenance of a road infrastructure is sustainable.

As government, we have reaffirmed the user-pay principle as a fair, affordable and reliable mechanism to fund infrastructure development. As such, the new payment options safeguard the integrity of the fiscus and 4 enhance the ability of the South African National Roads Agency to raise funds to meet its obligations.

It will ensure that the North West province has an excellent road network well into the future while reducing traffic congestion, travel time and transport costs. As government, we reaffirm our commitment to efficient, reliable and integrated public transport infrastructure and services. This, we believe is the backbone of a modern economy and key to the integration of our cities.

The new dispensation on discounted tariffs demonstrates that cooperative governance works. The revised financial model came as a result of the plight of the majority of North West province residents particularly motorists who have to travel through the Swartruggens Toll plaza daily.

The ANC government having listened to the people of North West, we have responded. We have gone beyond the initial proposal and provided a comprehensive solution to the concerns of our people.

The increased local user discount areas have been extended. In the Swartruggens/ Groot Marico area, the entire Kgetlengrivier Local Municipality area qualifies for a 75% discount.

We have also increased the discounted area of Zeeurst to the entire Ramotshere Moiloa Local Municipality area for the 15% discount.

For those who will be using the road frequently, we have also considered the idea of the introduction of a frequent user discount.

The Frequent User Discount (FUD) will be incorporated for class one (1) vehicles. Vehicles must be fitted with the e-tags to qualify for these discounts.  We will ensure that easy identification, prevents fraud and ensures that the intended beneficiary receives the deserved benefits.

The frequent user discount are per vehicle and not per account and are valid within a calendar month.

The application for these FUD’s is stepped as follows for Class one (1) vehicles:

•     0% for transits up to R375;
•     5% for transits exceeding R375 per calendar month (375 to R750);
•     10% for transits exceeding R750 per calender month (750 to R1500);
•     20% for transits exceeding R1500 per calender month (R1500 plus).

These discounts are over and above the area discounts where applicable.

All public transport vehicles within the Groot Marico and Swartruggens and Zeerust areas will receive discounts of 75% and 15% respectively. Motorists can as well use alternative routes from Zeerust to Swartruggens enroute Rustenburg and from Gauteng to Mahikeng.

In conclusion,

I wish to thank the officials of the Department of Transport, National Treasury, the South African National Roads Agency and the North West Provincial Government who worked so hard to make this deal possible.

We also thank the people of North West for participating in the work of the Task Team and making valuable proposals to address the problems.

Lastly, I wish to extend a special word of appreciation to the North West Premier Supra Mahumapelo, as well as MECs Saliva Molapisi for providing such able leadership throughout this complex and challenging process.

This new dispensation presents an opportunity for a fresh start.

This new dispensation demonstrates that government is alive to the needs and concerns of citizens.

We call on all stakeholders to work with us to build an integrated, reliable and affordable transport system that meets the needs of the people of North West and the country.

Together, we move South Africa forward.

I thank you.