Date: 22/02/05
Source: Ministry of Transport
Title: Radebe: SANTACO/Joint Banks Taxi Finance Initiative
Remarks by Jeff Radebe, MP, Minister of Transport, at the launch of the Santaco/Joint Banks Taxi Finance Initiative, ABSA Media Park, Montana Park, Pretoria
22 February 2005
I am delighted to be here at the launch of the SANTACO/Joint Banks initiative for the financing of the Taxi Industry. This is an encouraging sign that we, Government, the Taxi Industry and Financial Institutions are working together in order to effect significant improvements in our public transport operations. The transformation and empowerment of the taxi industry is thus central to our collective efforts of ensuring that we have a public transport system that is reliable and able to respond to the needs of all the users. It is important to remind ourselves that the majority of South Africa’s people are captive to and continue to use all modes of public transport: trains, buses and taxis.
The taxi industry plays a vital role in the economy of South Africa. It is responsible for moving 65% of the commuting public on a given day. Despite hostilities from previous apartheid governments, the black dominated taxi industry has over the years become the dominant mode of public transport. It has taken away the ridership from the other public transport modes. It is our considered view that we need to find other creative and workable strategies for providing assistance to the taxi industry. A key challenge for Government and the industry is to ensure that the taxi industry becomes sustainable as a business. Among the key initiatives Government is exploring in the short term is the critical need to open the public transport subsidy regime to accommodate the taxi industry. In order to achieve this goal, the taxi industry will need to consolidate itself and ensure that it takes advantage of some of the opportunities created as a result of the restructuring of public transport.
The initiative by SANTACO and the four major financial institutions (ABSA, Wesbank, Nedbank and Standard Bank) and the Daimler Chrysler Services to ensure finance for taxi operators is most welcome. This is a major step forward for the taxi industry in achieving better and easier finance for members. As Government, we believe that this will go a long way towards ensuring that registered members of the taxi industry are able to renew their taxi fleet, so that taxi vehicles and operations are indeed safe and reliable.
The Memoranda of Understanding between SANTACO and the participating Banks and Daimler Chrysler contain provisions that seek to balance the interests of the financial sector and that of taxi operators. The risk factors are identified and dealt with in a way that indicates to us that the spirit of the agreement is to ensure that as many of the operators as possible get access to vehicle finance. Most importantly, provisions of the Memoranda of Understanding does not undermine competition, and respect the right of the operator(s) to choose from any financial institution they wish to finance their vehicle.
I must say that the lack of finance for the renewal of the taxi fleet is one of the major concerns of the Government. We recognise the fact that the failure of operators to access vehicle financing could serve as a major stumbling block to achieving our main objectives – replacing the current, ageing fleet with new, safe and reliable vehicles. I am glad that your partnership today is assisting us in dealing with one of the major factors critical to the successful implementation of the Taxi Recapitalisation Project (TRP).
For us, the agreement and initiative is significant in two ways. Firstly, this is an initiative by the taxi industry (SANTACO), in partnership with ABSA, Standard Bank, Nedbank, Wesbank and Daimler Chrysler. This is not an initiative by the Department of Transport, but rather an initiative that has grown organically from the realisation by the two partners that there are mutual benefits in their cooperation. Government welcomes this important initiative because it is consistent with and strengthens our resolve as Government to assist and sustain the taxi industry, as part of a broader initiative to improve and integrate public transport in our country.
Secondly, the commitment by the Banks is made despite the fact that at this stage, we have yet to determine the price of a New Taxi Vehicles (NTVs). As you may be aware, this will partly be determined by the safety requirements that Cabinet will be finalising in the coming weeks, and which we will publish for public comment soon thereafter. In this regard, the commitment by the banks to the taxi industry is significant. The four banks - ABSA, Standard Bank and Wesbank together with the Daimler Chrysler Services scheme, are today making an important statement. I wish to commend and thank ABSA, Standard Bank, Nedbank, Daimler Chrysler and Wesbank for their vision, courage and confidence in and making the powerful statement that says to all of us – there is a future for public transport in this country.
SANTACO, and as a result the participation of the taxi industry as a whole, is central to the success of this initiative. Sometime in October 2004, I met the leadership of SANTACO in Cape Town where we discussed important matters affecting the interests of taxi operators. The leadership briefed me about some of the initiative, among them the SANTACO Taxi Finance Plan, as part of interventions to sustain the industry as a business. I am however inspired by the determination and the speed with which SANTACO has pursued this noble goal. SANTACO should be congratulated for seizing the initiative and negotiating for the taxi industry to improve the lives of taxi owners, taxi drivers and above all, the commuters.
The Government is committed to interact and share views and experiences with all players in the taxi industry. We seek to harness the experiences and energies of the industry towards a common goal – better and safe public transport. However, it is important to stress that we will continue to work very closely with SANTACO as the genuine voice of the taxi industry. We are all aware that SANTACO at national, provincial and local level was democratically elected by the taxi industry, as part of the democratisation of the industry. It is important that we all do not allow for this positive element of the taxi industry to be reversed.
The launch today forms an important part of the exciting period in the history of the taxi industry. Government has been hard at work in ensuring that the Cabinet decision on the Taxi Recapitalisation Project is implemented. We are keen to meet the commitments made in October 2004, that we will begin the rollout of the programme in the new financial year. I have instructed officials in my Department that the deadlines we have set for ourselves will not be changed.
Finally, I wish to take this opportunity to call on the taxi industry to overcome the obstacles of the past. We should work in partnership with Government in ensuring that taxi operators have a place under the sun. In doing so, we will also need to accept the reality that Government will need to regulate the industry more effectively, and ensure that law enforcement is the order of the day. I am confident that through initiatives such as this one, the taxi industry will rise to the occasion and ensure that the industry is consolidated and take its rightful place within our public transport arena.
I thank you!
Issued by: Ministry of Transport
22 February 2005
Source: Ministry of Transport
Title: Radebe: SANTACO/Joint Banks Taxi Finance Initiative
Remarks by Jeff Radebe, MP, Minister of Transport, at the launch of the Santaco/Joint Banks Taxi Finance Initiative, ABSA Media Park, Montana Park, Pretoria
22 February 2005
I am delighted to be here at the launch of the SANTACO/Joint Banks initiative for the financing of the Taxi Industry. This is an encouraging sign that we, Government, the Taxi Industry and Financial Institutions are working together in order to effect significant improvements in our public transport operations. The transformation and empowerment of the taxi industry is thus central to our collective efforts of ensuring that we have a public transport system that is reliable and able to respond to the needs of all the users. It is important to remind ourselves that the majority of South Africa’s people are captive to and continue to use all modes of public transport: trains, buses and taxis.
The taxi industry plays a vital role in the economy of South Africa. It is responsible for moving 65% of the commuting public on a given day. Despite hostilities from previous apartheid governments, the black dominated taxi industry has over the years become the dominant mode of public transport. It has taken away the ridership from the other public transport modes. It is our considered view that we need to find other creative and workable strategies for providing assistance to the taxi industry. A key challenge for Government and the industry is to ensure that the taxi industry becomes sustainable as a business. Among the key initiatives Government is exploring in the short term is the critical need to open the public transport subsidy regime to accommodate the taxi industry. In order to achieve this goal, the taxi industry will need to consolidate itself and ensure that it takes advantage of some of the opportunities created as a result of the restructuring of public transport.
The initiative by SANTACO and the four major financial institutions (ABSA, Wesbank, Nedbank and Standard Bank) and the Daimler Chrysler Services to ensure finance for taxi operators is most welcome. This is a major step forward for the taxi industry in achieving better and easier finance for members. As Government, we believe that this will go a long way towards ensuring that registered members of the taxi industry are able to renew their taxi fleet, so that taxi vehicles and operations are indeed safe and reliable.
The Memoranda of Understanding between SANTACO and the participating Banks and Daimler Chrysler contain provisions that seek to balance the interests of the financial sector and that of taxi operators. The risk factors are identified and dealt with in a way that indicates to us that the spirit of the agreement is to ensure that as many of the operators as possible get access to vehicle finance. Most importantly, provisions of the Memoranda of Understanding does not undermine competition, and respect the right of the operator(s) to choose from any financial institution they wish to finance their vehicle.
I must say that the lack of finance for the renewal of the taxi fleet is one of the major concerns of the Government. We recognise the fact that the failure of operators to access vehicle financing could serve as a major stumbling block to achieving our main objectives – replacing the current, ageing fleet with new, safe and reliable vehicles. I am glad that your partnership today is assisting us in dealing with one of the major factors critical to the successful implementation of the Taxi Recapitalisation Project (TRP).
For us, the agreement and initiative is significant in two ways. Firstly, this is an initiative by the taxi industry (SANTACO), in partnership with ABSA, Standard Bank, Nedbank, Wesbank and Daimler Chrysler. This is not an initiative by the Department of Transport, but rather an initiative that has grown organically from the realisation by the two partners that there are mutual benefits in their cooperation. Government welcomes this important initiative because it is consistent with and strengthens our resolve as Government to assist and sustain the taxi industry, as part of a broader initiative to improve and integrate public transport in our country.
Secondly, the commitment by the Banks is made despite the fact that at this stage, we have yet to determine the price of a New Taxi Vehicles (NTVs). As you may be aware, this will partly be determined by the safety requirements that Cabinet will be finalising in the coming weeks, and which we will publish for public comment soon thereafter. In this regard, the commitment by the banks to the taxi industry is significant. The four banks - ABSA, Standard Bank and Wesbank together with the Daimler Chrysler Services scheme, are today making an important statement. I wish to commend and thank ABSA, Standard Bank, Nedbank, Daimler Chrysler and Wesbank for their vision, courage and confidence in and making the powerful statement that says to all of us – there is a future for public transport in this country.
SANTACO, and as a result the participation of the taxi industry as a whole, is central to the success of this initiative. Sometime in October 2004, I met the leadership of SANTACO in Cape Town where we discussed important matters affecting the interests of taxi operators. The leadership briefed me about some of the initiative, among them the SANTACO Taxi Finance Plan, as part of interventions to sustain the industry as a business. I am however inspired by the determination and the speed with which SANTACO has pursued this noble goal. SANTACO should be congratulated for seizing the initiative and negotiating for the taxi industry to improve the lives of taxi owners, taxi drivers and above all, the commuters.
The Government is committed to interact and share views and experiences with all players in the taxi industry. We seek to harness the experiences and energies of the industry towards a common goal – better and safe public transport. However, it is important to stress that we will continue to work very closely with SANTACO as the genuine voice of the taxi industry. We are all aware that SANTACO at national, provincial and local level was democratically elected by the taxi industry, as part of the democratisation of the industry. It is important that we all do not allow for this positive element of the taxi industry to be reversed.
The launch today forms an important part of the exciting period in the history of the taxi industry. Government has been hard at work in ensuring that the Cabinet decision on the Taxi Recapitalisation Project is implemented. We are keen to meet the commitments made in October 2004, that we will begin the rollout of the programme in the new financial year. I have instructed officials in my Department that the deadlines we have set for ourselves will not be changed.
Finally, I wish to take this opportunity to call on the taxi industry to overcome the obstacles of the past. We should work in partnership with Government in ensuring that taxi operators have a place under the sun. In doing so, we will also need to accept the reality that Government will need to regulate the industry more effectively, and ensure that law enforcement is the order of the day. I am confident that through initiatives such as this one, the taxi industry will rise to the occasion and ensure that the industry is consolidated and take its rightful place within our public transport arena.
I thank you!
Issued by: Ministry of Transport
22 February 2005
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