Date: 13/09/2005
Source: Department of Transport
Title: Radebe: Road Accident Fund Amendment Bill debate, NA
Opening remarks by Minister of Transport on Road Accident Fund Amendment Bill in the National Assembly
Deputy Speaker
Honourable Members
After a lengthy period of consultation, technical drafting and re-drafting, I have pleasure to introduce the Second Reading of the Road Accident Fund Amendment Bill. Quite frankly, this has been a long and at times arduous route where transport officials have had to traverse the intricate details of the law of delict, the Constitution and a great deal of statistical information that is subject to various interpretations. Some time ago, in a Budget Vote debate, I indicated that government was concerned to bring the Road Accident Fund back to its fundamental purpose, namely to provide assistance to the victims of road accidents.
The fund, however, has never been in a position where its cup flowed over with excess resources. We approached the amendment to the original Bill fully cognisant of the challenges that we face. These include an environment where global fuel prices limit the probably unsatisfactory option to increase levies. Of continuing concern is the unacceptably high rate of road accidents in South Africa. And of great concern to the victims themselves, it has been clear for some time that the current system of compensation is slow, expensive and perpetuates the inequalities in our provision of healthcare and compensation.
This Amendment Bill seeks to speak to the constitutional imperatives of ensuring the progressive realisation of the right to social security and healthcare; and the provision of appropriate relief without the introduction of unfair discrimination. It does this, firstly, by introducing a system of compensation that is more equitable, fair and transparent than the current system. Secondly, it provides for good corporate governance and addresses the financial position of the Fund.
The Bill removes unreasonable limitations on passengers in favour of reasonable and transparent limitations for all road users. For the first time, and this is a major step forward, users of public transport will now be able to claim from the fund in the interest of helping build a more equitable system.
The Bill ensures that more compensation reaches the primary victims of road accidents by reducing the settlement costs. This aims to stop the recent trend towards increasing expense to both the Fund and the claimant. The Bill further protects those seriously injured who will be able to receive compensation to help them adjust their lives accordingly.
The Bill introduces measures of transparency in providing healthcare according to public healthcare tariffs to ensure that current inequalities are not perpetuated through fuel levy monies. These amendments were mindful of the need to allow for choice in healthcare and to ensure sufficient capacity for the critical golden hour.
Finally, the Bill aims to effect some savings to the Fund as the new claims come through the system. The experts estimate proposed savings to the Fund in the region of R0.5 billion and R1.6 billion over five years. Deputy Speaker, it is critical to understand that this Bill is a transitional measure, which allows the Fund to continue providing a service to victims of road accidents. The Bill does not change the system of compensation but merely limits the levels of compensation whilst ensuring that the Fund does not discriminate against certain classes of road users.
This Bill does not address the inequities in accessing support or medical treatment which are hindered by the principle of fault; nor does it address the inefficiencies and long delays of which so many victims have informed me; it also does not provide any compensation to those who were injured in accidents where there was no wrong doing on the part of the other driver. To this end, my Department is finalising a policy process in which the consequences and implications of implementing the recommendations of the Satchwell Commission have been considered. The critical policy question is whether South Africa should shift to a no-fault system of benefits, which will be more equitable, reasonable, affordable and sustainable in the longer term.
Such a system will then form part of the Comprehensive Social Security System. The position papers of the Inter-departmental committee are currently being finalised and I look forward to take this matter to Cabinet within this year. In the short and medium term the Bill remains critical to reduce the current financial risks faced by the Fund and it will be critical that the savings affected by the Bill are matched by administrative and efficiency savings within the management of the Fund.
Deputy Speaker, allow me to introduce the Bill.
Issued by: Department of Transport 13 September 2005
Source: Department of Transport
Source: Department of Transport
Title: Radebe: Road Accident Fund Amendment Bill debate, NA
Opening remarks by Minister of Transport on Road Accident Fund Amendment Bill in the National Assembly
Deputy Speaker
Honourable Members
After a lengthy period of consultation, technical drafting and re-drafting, I have pleasure to introduce the Second Reading of the Road Accident Fund Amendment Bill. Quite frankly, this has been a long and at times arduous route where transport officials have had to traverse the intricate details of the law of delict, the Constitution and a great deal of statistical information that is subject to various interpretations. Some time ago, in a Budget Vote debate, I indicated that government was concerned to bring the Road Accident Fund back to its fundamental purpose, namely to provide assistance to the victims of road accidents.
The fund, however, has never been in a position where its cup flowed over with excess resources. We approached the amendment to the original Bill fully cognisant of the challenges that we face. These include an environment where global fuel prices limit the probably unsatisfactory option to increase levies. Of continuing concern is the unacceptably high rate of road accidents in South Africa. And of great concern to the victims themselves, it has been clear for some time that the current system of compensation is slow, expensive and perpetuates the inequalities in our provision of healthcare and compensation.
This Amendment Bill seeks to speak to the constitutional imperatives of ensuring the progressive realisation of the right to social security and healthcare; and the provision of appropriate relief without the introduction of unfair discrimination. It does this, firstly, by introducing a system of compensation that is more equitable, fair and transparent than the current system. Secondly, it provides for good corporate governance and addresses the financial position of the Fund.
The Bill removes unreasonable limitations on passengers in favour of reasonable and transparent limitations for all road users. For the first time, and this is a major step forward, users of public transport will now be able to claim from the fund in the interest of helping build a more equitable system.
The Bill ensures that more compensation reaches the primary victims of road accidents by reducing the settlement costs. This aims to stop the recent trend towards increasing expense to both the Fund and the claimant. The Bill further protects those seriously injured who will be able to receive compensation to help them adjust their lives accordingly.
The Bill introduces measures of transparency in providing healthcare according to public healthcare tariffs to ensure that current inequalities are not perpetuated through fuel levy monies. These amendments were mindful of the need to allow for choice in healthcare and to ensure sufficient capacity for the critical golden hour.
Finally, the Bill aims to effect some savings to the Fund as the new claims come through the system. The experts estimate proposed savings to the Fund in the region of R0.5 billion and R1.6 billion over five years. Deputy Speaker, it is critical to understand that this Bill is a transitional measure, which allows the Fund to continue providing a service to victims of road accidents. The Bill does not change the system of compensation but merely limits the levels of compensation whilst ensuring that the Fund does not discriminate against certain classes of road users.
This Bill does not address the inequities in accessing support or medical treatment which are hindered by the principle of fault; nor does it address the inefficiencies and long delays of which so many victims have informed me; it also does not provide any compensation to those who were injured in accidents where there was no wrong doing on the part of the other driver. To this end, my Department is finalising a policy process in which the consequences and implications of implementing the recommendations of the Satchwell Commission have been considered. The critical policy question is whether South Africa should shift to a no-fault system of benefits, which will be more equitable, reasonable, affordable and sustainable in the longer term.
Such a system will then form part of the Comprehensive Social Security System. The position papers of the Inter-departmental committee are currently being finalised and I look forward to take this matter to Cabinet within this year. In the short and medium term the Bill remains critical to reduce the current financial risks faced by the Fund and it will be critical that the savings affected by the Bill are matched by administrative and efficiency savings within the management of the Fund.
Deputy Speaker, allow me to introduce the Bill.
Issued by: Department of Transport 13 September 2005
Source: Department of Transport
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