Date: 28/08/2005
Source: Gauteng Provincial Government
Title: Jacobs: Transformation of taxi industry
Media briefing by Gauteng MEC, Mr Ignatius Jacobs, Public Transport, Roads and Works in Gauteng on transformation of the taxi industry: Taking the first step, conversion to operating licenses
In our Budget Speech in March this year we highlighted the need for the development of a modern and efficient transport system that fits into the rapid development in the province.
Achieving this long term transformation will require a series of time-bound, sequenced and prioritised actions.
This press conference today has been called to announce one such action: increasing the pace of conversion of permits to operating licences for mini-bus taxi types.
CONTEXT FOR CONVERSION
The conversion of permits to operating licences is only one, albeit a very important once off action or step, in a much longer process to building a sustainable and profitable public transport industry. Before I explain the details of the conversion process, let me spend some time explaining the context for this process and how it fits in into the broader process of public transport transformation in general and of the taxi industry in particular.
Our department is working towards the integration of the road based public passenger industry where we have a single public transport industry made up of metered taxis, mini- midi- and larger buses, learner transport and tour operators. We have companies, associations and co-operatives operating in all this industry, delivering quality and safe services to commuters and making healthy profits.
We would like to acknowledge upfront that the taxi industry is the most popular and accessible form of public transport in our province. As many as four times more people use taxis as compared to buses and trains combined. Therefore it is important that government pays attention to this section, supports it and enables it to grow.
We are firmly of the view that the taxi industry will only be able to grow and prosper if it becomes integrated with other modes of public transport on the one hand and with other parts of the motor industry supply chain on the other.
However before the taxi industry can grow, it needs to become legal, conflict free and formalized. But most importantly has to overcome the terrible apartheid legacy of being ghettoised to townships and to serve predominantly poor black people.
This is what the conversion process is essentially about. During apartheid, taxi operators where issued with 'radius' based permits which restricted their operations very often to the borders or radius's of black townships.
We now want to convert these permits into modern operating licenses which will operate the same way as operating licenses for all other modes of public transport.
BENEFITS OF CONVERSION
We would like to stress that there are no losers in the conversion process. Instead conversion is the necessary step for operators to be able to benefit from the process of taxi recapitalisation and the other measures that government is putting into place to support the taxi industry. And indeed if conversion does not take place, the moratorium on new operators entering the system will never be able to be lifted. Commuters will also benefit from the process of conversion to operating licenses. Before an operating license can be issued, operators will have to show that their vehicle is fit or in other words, safe to be on the road.
Operators are also required to indicate that they are registered with the South African Revenue Services and have taken out public liability insurance so that if they are involved in an accident, injured passengers will be insured.
The new or converted operating licence will detail the route which the driver is expected to travel and drivers will be expected to carry the license with them at all times.
This means that drivers who take short cuts or go on routes of rival taxi associations will be more easily identified by law enforcement officers and prosecuted. This can lead to a reduction of conflict over routes.
OTHER STEPS WE ARE TAKING TO BUILD A SUSTAINABLE TAXI INDUSTRY
As we said earlier, while we are about to embark on this conversion process, this is not the only step, nor the last, that we are taking to formalize and legalise the taxi industry and create the basis for it to grow. There are a number of other processes that we in partnership with both the industry and local and national government are or will be implementing including:
* Registering and regularizing the so-called 4 + 1's which operate in some areas of our province;
* Improving the processes of registering new routes where we have new developments and housing settlements;
* Introducing a comprehensive approach to reduce routes which are in conflict between one or more association;
* Training and capacity building of operators and drivers; and last but not least
* Restructuring the subsidy system so that rail, bus and taxi operators can access the subsidy and so that there can be fair competition between the modes
CALLING ALL TAXI OPERATORS! WHAT YOU CAN EXPECT
We believe that over the next few months we need to convert over 40 000 permits to operating licenses. This is a massive challenge but would constitute a massive step forward to stabilize the industry and provide a strong foundation for a conflict and corruption free industry.
We would like to call on all taxi operators to come forward and convert. We have opened four bases in Gauteng where we have set up a one stop shop so that taxi operators can convert with the least amount of hassle. We should also remind operators that there is no licence fee for converting.
Once applications for conversion have been received, we will be allowing 21 days for objections as required by the Act. Notices will be place in our offices and at other venues frequented by taxi operators and taxi commuters such as taxi ranks. The Gauteng Operating License Board will then consider the applications and any objections before granting permits.
One issue that we understand has been worrying the operators is the requirement in the Act to indicate whether or not they have a criminal record in respect of certain offences.
This was included in the Act because the Act envisaged the process of converting to an operating licence as a process of 'coming clean'.
However, we have had discussions with the Gauteng Operating Licensing Board and they have assured us that they will not penalize any operator who applies for an operating licence but does not complete this section.
Our officials have also had extensive discussions with local government and will be implementing the conversion in partnership with them both as far as the routes are concerned as well as in ensuring that there is no problem of ranking facilities for registered operators.
As far as possible we will ensure that operators will be licensed for routes that are part of the plans of local authorities but if there is a difference with the route that the operator wants to be licensed for, we have been assured by our officials that a process will be established to reach an agreement with the views of the operator taking prominence.
This is because this is primarily a conversion process and not a process of introducing multi-routes, rationalizing routes or redesigning routes. There are other provisions in the NLLTA which set out how this can occur to more effectively address the needs of commuters.
We still have some 6 000 permits in our office that were issued during the Be Legal Campaign. There is still time for operators to collect these permits and convert them in one process. However, if they do not collect their permits and convert those, the permits will lapse and operators will have to apply anew.
We should also mention that some parts of the industry also experience frustrations with the administrative operations of the Transport Registrar and Gauteng Operating Licensing Board. We have an ongoing programme to resource and capacitate these bodies to provide a quality and corruption free service to operators.
Law enforcement officers metro are also fully on board this process. I can assure operators that there will be no impounding of vehicles as a result of confusion about this process.
IN PARTNERSHIP WITH THE TAXI INDUSTRY LEADERSHIP
Lastly, we would like to indicate that we have had consultations with the leadership of the Gauteng Taxi Council (GATACO) and the Gauteng National Taxi Alliance (GNTA) on the conversion process and a number of problems that they have raised, we have ironed out.
We understand that leadership of associations will be working with our officials to support their members to convert and in the near future there will be road shows to inform operators of this process.
Other problems the industry raised such as the lifespan of operating licenses require legislative amendments.
We would like to indicate that we returned from a Minmec on Friday where the Minister reaffirmed his support for legislative amendments of the National Land Transport Transition Act. He also indicated that he will shortly be making an announcement of the extension of the deadline for conversion.
However, the national Minister and my fellow MECs responsible for transport and community safety were unanimous: that after this extension, if operators have not got operating licences or proof that they have submitted an application for conversion, the law enforcement officers will show no leniency in getting them off our roads.
Sekunjalo! Now is the time to convert in the interests of building a sustainable safe and profitable taxi industry!
For more information contact: Mr Lebelo Maloka
Tel: (011) 355 7553
Cell: 083 310 2057
E-mail: lebelom@gpg.gov.za
Issued by: Department of Public Transport,
Roads and Works, Gauteng Provincial Government
28 August 2005
Source: Gauteng Provincial Government
Title: Jacobs: Transformation of taxi industry
Media briefing by Gauteng MEC, Mr Ignatius Jacobs, Public Transport, Roads and Works in Gauteng on transformation of the taxi industry: Taking the first step, conversion to operating licenses
In our Budget Speech in March this year we highlighted the need for the development of a modern and efficient transport system that fits into the rapid development in the province.
Achieving this long term transformation will require a series of time-bound, sequenced and prioritised actions.
This press conference today has been called to announce one such action: increasing the pace of conversion of permits to operating licences for mini-bus taxi types.
CONTEXT FOR CONVERSION
The conversion of permits to operating licences is only one, albeit a very important once off action or step, in a much longer process to building a sustainable and profitable public transport industry. Before I explain the details of the conversion process, let me spend some time explaining the context for this process and how it fits in into the broader process of public transport transformation in general and of the taxi industry in particular.
Our department is working towards the integration of the road based public passenger industry where we have a single public transport industry made up of metered taxis, mini- midi- and larger buses, learner transport and tour operators. We have companies, associations and co-operatives operating in all this industry, delivering quality and safe services to commuters and making healthy profits.
We would like to acknowledge upfront that the taxi industry is the most popular and accessible form of public transport in our province. As many as four times more people use taxis as compared to buses and trains combined. Therefore it is important that government pays attention to this section, supports it and enables it to grow.
We are firmly of the view that the taxi industry will only be able to grow and prosper if it becomes integrated with other modes of public transport on the one hand and with other parts of the motor industry supply chain on the other.
However before the taxi industry can grow, it needs to become legal, conflict free and formalized. But most importantly has to overcome the terrible apartheid legacy of being ghettoised to townships and to serve predominantly poor black people.
This is what the conversion process is essentially about. During apartheid, taxi operators where issued with 'radius' based permits which restricted their operations very often to the borders or radius's of black townships.
We now want to convert these permits into modern operating licenses which will operate the same way as operating licenses for all other modes of public transport.
BENEFITS OF CONVERSION
We would like to stress that there are no losers in the conversion process. Instead conversion is the necessary step for operators to be able to benefit from the process of taxi recapitalisation and the other measures that government is putting into place to support the taxi industry. And indeed if conversion does not take place, the moratorium on new operators entering the system will never be able to be lifted. Commuters will also benefit from the process of conversion to operating licenses. Before an operating license can be issued, operators will have to show that their vehicle is fit or in other words, safe to be on the road.
Operators are also required to indicate that they are registered with the South African Revenue Services and have taken out public liability insurance so that if they are involved in an accident, injured passengers will be insured.
The new or converted operating licence will detail the route which the driver is expected to travel and drivers will be expected to carry the license with them at all times.
This means that drivers who take short cuts or go on routes of rival taxi associations will be more easily identified by law enforcement officers and prosecuted. This can lead to a reduction of conflict over routes.
OTHER STEPS WE ARE TAKING TO BUILD A SUSTAINABLE TAXI INDUSTRY
As we said earlier, while we are about to embark on this conversion process, this is not the only step, nor the last, that we are taking to formalize and legalise the taxi industry and create the basis for it to grow. There are a number of other processes that we in partnership with both the industry and local and national government are or will be implementing including:
* Registering and regularizing the so-called 4 + 1's which operate in some areas of our province;
* Improving the processes of registering new routes where we have new developments and housing settlements;
* Introducing a comprehensive approach to reduce routes which are in conflict between one or more association;
* Training and capacity building of operators and drivers; and last but not least
* Restructuring the subsidy system so that rail, bus and taxi operators can access the subsidy and so that there can be fair competition between the modes
CALLING ALL TAXI OPERATORS! WHAT YOU CAN EXPECT
We believe that over the next few months we need to convert over 40 000 permits to operating licenses. This is a massive challenge but would constitute a massive step forward to stabilize the industry and provide a strong foundation for a conflict and corruption free industry.
We would like to call on all taxi operators to come forward and convert. We have opened four bases in Gauteng where we have set up a one stop shop so that taxi operators can convert with the least amount of hassle. We should also remind operators that there is no licence fee for converting.
Once applications for conversion have been received, we will be allowing 21 days for objections as required by the Act. Notices will be place in our offices and at other venues frequented by taxi operators and taxi commuters such as taxi ranks. The Gauteng Operating License Board will then consider the applications and any objections before granting permits.
One issue that we understand has been worrying the operators is the requirement in the Act to indicate whether or not they have a criminal record in respect of certain offences.
This was included in the Act because the Act envisaged the process of converting to an operating licence as a process of 'coming clean'.
However, we have had discussions with the Gauteng Operating Licensing Board and they have assured us that they will not penalize any operator who applies for an operating licence but does not complete this section.
Our officials have also had extensive discussions with local government and will be implementing the conversion in partnership with them both as far as the routes are concerned as well as in ensuring that there is no problem of ranking facilities for registered operators.
As far as possible we will ensure that operators will be licensed for routes that are part of the plans of local authorities but if there is a difference with the route that the operator wants to be licensed for, we have been assured by our officials that a process will be established to reach an agreement with the views of the operator taking prominence.
This is because this is primarily a conversion process and not a process of introducing multi-routes, rationalizing routes or redesigning routes. There are other provisions in the NLLTA which set out how this can occur to more effectively address the needs of commuters.
We still have some 6 000 permits in our office that were issued during the Be Legal Campaign. There is still time for operators to collect these permits and convert them in one process. However, if they do not collect their permits and convert those, the permits will lapse and operators will have to apply anew.
We should also mention that some parts of the industry also experience frustrations with the administrative operations of the Transport Registrar and Gauteng Operating Licensing Board. We have an ongoing programme to resource and capacitate these bodies to provide a quality and corruption free service to operators.
Law enforcement officers metro are also fully on board this process. I can assure operators that there will be no impounding of vehicles as a result of confusion about this process.
IN PARTNERSHIP WITH THE TAXI INDUSTRY LEADERSHIP
Lastly, we would like to indicate that we have had consultations with the leadership of the Gauteng Taxi Council (GATACO) and the Gauteng National Taxi Alliance (GNTA) on the conversion process and a number of problems that they have raised, we have ironed out.
We understand that leadership of associations will be working with our officials to support their members to convert and in the near future there will be road shows to inform operators of this process.
Other problems the industry raised such as the lifespan of operating licenses require legislative amendments.
We would like to indicate that we returned from a Minmec on Friday where the Minister reaffirmed his support for legislative amendments of the National Land Transport Transition Act. He also indicated that he will shortly be making an announcement of the extension of the deadline for conversion.
However, the national Minister and my fellow MECs responsible for transport and community safety were unanimous: that after this extension, if operators have not got operating licences or proof that they have submitted an application for conversion, the law enforcement officers will show no leniency in getting them off our roads.
Sekunjalo! Now is the time to convert in the interests of building a sustainable safe and profitable taxi industry!
For more information contact: Mr Lebelo Maloka
Tel: (011) 355 7553
Cell: 083 310 2057
E-mail: lebelom@gpg.gov.za
Issued by: Department of Public Transport,
Roads and Works, Gauteng Provincial Government
28 August 2005
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