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Radebe: Briefing on Taxi Recapitalisation Programme rollout strategy (25/07/2005)

25th July 2005

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Date: 25/07/2005
Source: Department of Transport
Title:Radebe: Briefing on Taxi Recapitalisation Programme rollout strategy


  Transport Minister Jeff Radebe announces the rollout strategy of the Taxi Recapitalisation Programme

Following Cabinet announcement in October 2004 of the revised approach to the Taxi Recapatilisation Programme (TRP), the Department of Transport has for the past eight months focused attention on the development of a detailed TRP rollout strategy. Among the key challenges faced were the identification of potential risk factors, development of mitigating strategies and assessment of the state of readiness of the Provinces.

Minister Radebe says, "Government is today satisfied that a detailed strategy that is realistic and speaks first and foremost to the safety of commuters has been developed. The strategy is also responsive to the dynamics of the taxi industry and the interests of operators and is fully in pursuit of our public transport goals."

Cabinet has now approved the detailed strategy for the rollout of the TRP. In concrete terms, the TRP has entered a new phase - a phase of implementation and relentless activity over the next 18 months. The Taxi Recapitalisation Programme is becoming a reality and challenge of our times.

In rolling out the strategy, Government recognises that the sustainability of its interventions in the industry do not lie ONLY in the scrapping of old taxi vehicles, which remains the primary and immediate goal of the TRP. Also key to the success of government interventions in the industry are effective regulation, its integration into the public transport system, effective law enforcement as well as empowerment. To this end, the rollout strategy identifies the need in the short-term for the removal of the very oldest and unroadworthy taxi vehicles from South African roads putting the safety of commuters first.

The following comprises the TRP rollout strategy:

(a) Introduction of Safety Requirements for the new taxi vehicles (NTVs)
(b) Scrapping of existing vehicles
(c) Effective regulation of the taxi industry,
(d) Effective law enforcement in respect of public transport; and
(e) Empowerment of the taxi industry.

NTV Safety Requirements Cabinet has also approved the publication of Safety Requirements in the form of Regulations. The Regulations are final and binding, and any new vehicle that enters the taxi industry without meeting these Safety Requirements with effect from 1 January 2006 will not be licensed to operate as a taxi. The Final Regulations will be published in the Government Gazette by 1 August 2005 and will provide for the following:

a. Seatbelts
b. Roll Over Bars
c. Type 2 Braking System.
d. Commercially rated tyres: Size 185 R or 195 R for the Minibus.
e. Warning Markings.
f. Wheel Bands.
g. Tamper-Proof Speed Governors (100 km per hour will be set as the maximum).
h. Vehicles will be diesel-fuelled.
Minister Radebe added, "Cabinet had also agreed that the Regulations should also provide for the colour coding of all taxi vehicles in South Africa."

Scrapping of existing taxi vehicles

With regard to the scrapping of old taxi vehicles, Government intends to remove 10 000 old and unroadworthy vehicles from our roads by December 2006. The first opportunity will be to invite taxi operators who wish to exit the industry to voluntarily hand in their vehicles and permits/operating licenses. These operators will be invited to register in the next three months their intention to exit the industry with effect from August this year. A marketing communications campaign will be embarked upon to inform and encourage taxi operators across the country to register with the Operating Licensing Boards (OLBs) in their respective Provinces. The OLBs will register applications, evaluate them and verify the validity of permit/operating licenses linked to the taxi vehicle.

The payment of a scrapping allowance of R50 000,00 to taxi operators handing-in their vehicles will only take place after this verification process has been completed.

Minister Radebe says, "Taxi operators with old vehicles that are complete wrecks should take advantage of this window period and register their unsafe vehicles too."

Taxi operators failing to register these wrecks will face impoundment of their vehicles after the specified window period and risk forfeiting the R50 000 scrapping allowance. Furthermore, Government also wishes to caution taxi operators not to buy dormant (inactive) permits from former operators because these permits will not be honoured. Permits exchanged without being regularised by the OLBs will be treated as illegal. Taxi Associations encouraging their members to buy permits are considered misleading and compromising business interests of their operators. However, vehicles removed from our roads will not be immediately scrapped, but will be parked in safety in various vehicle pounds around the country. In early August 2005, the Department of Transport will invite interested parties to submit proposals on the establishment and management of a scrapping and administration mechanism. The scrapping and administration mechanism will carry out the physical scrapping of old taxi vehicles, including those voluntarily handed in by taxi operators.

Regulating the industry

Minister Radebe will in the next session of Parliament introduce amendments to the National Land Transport Transition Act (NLTTA) with a view to strengthening the regulation of the taxi industry. Among key amendments to be introduced is to ensure that Municipalities take control of taxi ranks and their management. Taxi ranks and routes will no longer be under the control of taxi associations and/or bodies. The financial contribution of members to associations will also be scrutinised. The Department of Transport, in consultation with the industry, is considering the need for a regulatory body to facilitate the integration of the taxi industry into the formal public transport system.

Minister Radebe added, "In view of the regulatory steps to be undertaken, it is now clear that the days of the taxi industry regulating itself will soon become a thing of the past."

Law Enforcement

With regard to effective law enforcement, the Road Traffic Management Corporation (RTMC) has been tasked to finalise a detailed Business Plan, which aims at strengthening the capacity of the State to enforce the law. Government has committed R2,5 billion over the next five years to increase its capacity to enforce the laws in relation to public transport.

The law enforcement strategy must include strengthening of capacity of existing public transport law enforcement units in the various provinces by June 2006 and establish such units where necessary.

Broad Based Black Economic Empowerment

The renewal of the taxi fleet would not be sustainable if not accompanied by the empowerment of the industry and changes in the nature of taxi operations. The Transport Sector BEE Charter will elaborate further on the strategy. However, the taxi industry empowerment process will be driven by the industry itself with Government providing support mechanisms. The strategy will also take into account the interests of taxi drivers. The Department of Transport is currently finalising a programme directed at taxi drivers who have been in the industry for many years and/or whose employers will be exiting the industry. This programme will give taxi drivers the opportunity to graduate to taxi operator status in their own right and participate in related economic activities.

Minister Radebe concluded, "The successful implementation of our TRP strategy will depend on the ability of the Department of Transport to manage the rollout, make the right choices and trade offs, as well as effective consultations and communication with relevant stakeholders in the taxi industry. Government is determined to ensure the interests and safety of commuters are at the heart of an improved public transport system which is safe, affordable and reliable."

For more information contact:
Trevor Gozhi
Media Liaison
Cell: 082 883 7011

Zipphora Mothoa
Communications
Department of Transport
Cell: 083 402 0018

Issued by: Department of Transport
25 July 2005
   
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