Date: 18/08/2005
Source: Department of Transport
Title: Radebe: Top Six Management Ltd AGM
Address by Mr JT Radebe, MP, Minister of Transport at the Annual General Meeting of Top Six Management Ltd held at the Durban Exhibition Centre
It is my pleasure to be here with you this morning. The Annual General Meeting of Top Six Taxi Management Company is no ordinary event. It is a gathering, which taxi associations and operators and our Government look forward to with interest and expectation. The decision to turn Top Six into a business entity was an important milestone in the history and advancement of the taxi industry. It is indeed part of the broader process to ensure that black people have ownership, control and meaningful participation in the mainstream of our economy.
I am today encouraged to see that taxi operators all over the country are beginning to form themselves into business entities with the view to take full advantage of the many opportunities created by economic transformation undertaken by our African National Congress (ANC) Government. Again, the ANC Government is not there to destroy and destabilise the taxi industry, but is committed to work with you all as pillars of the only industry that is black-owned and controlled, and for the benefit of the majority of South Africans. I will return to this theme later in my address.
When we look back, we are bound to conclude that the taxi industry has been through a long and arduous path. Top Six itself was formed in response to the difficult conditions of the 1990s. The defining feature of the industry and political transformation that were taking place at that time had to face to the daunting challenge of violence that threatened to engulf both the taxi industry and our entire society. Today, Top Six is a fully-fledged business entity that seeks to address the "economic and social needs of its broad-based membership".
This major transformation, and the fact that we are meeting under normal and stable conditions within the industry and our country, should continue to serve as a reminder of the progress we are making as South Africans to build a country that truly belongs to all. Again, these achievements were not an accident of history, but were rather a direct outcome of the decisive and visionary leadership of the ANC as an organisation and leadership within many civil society formations such as Top Six, as well as the active participation of millions of ordinary South Africans. We will need to build on this genuine South African tradition in order to transform the taxi industry and our country for the better.
We will need to go back to the history of the taxi industry in order to take advantage of the economic opportunities. The taxi industry has demonstrated beyond doubt that it is strong and resilient. The apartheid government did not view the taxi industry as part of the formal public transport system and denied it access to the subsidy and other forms of support.
As a result, we have a public transport system where other subsidised land transport, especially the bus industry, had enjoyed enormous privileges over the taxi industry. This unfair treatment was not only limited to subsidies, but also extended to the taxi industry denied of access to basic facilities such as well-structured taxi ranks. Many of the taxi ranks and facilities, as well as routes, were opened as a result of struggles waged by black taxi operators. It is this history that perhaps explains how taxi associations and their members have become so protective of their turf by impeding access to lucrative routes and ranking facilities to ranking facilities for operators from rival associations. We all know that this has resulted in conflict within the taxi industry.
As you could determine, other industries would have simply given up against a powerful State, which was hostile and kept the pressure through harassment of black taxi operators. However, taxi operators did not yield to the pressures and continue to provide a service. Despite the unfair treatment, taxi operators did not yield to the pressures but continued to provide a service to the public successfully as a result capturing a big share of the public transport passenger market.
The fundamental truth, which we must all accept, is that the taxi industry has been able to respond to and meet passenger demands more than any other public transport mode. The taxi industry was able to take advantage of the gaps in the formal public transport system, and positioned itself as the public transport mode of choice. Of course, the industry was also able to further take advantage when the Apartheid Government deregulated the industry in the late 1980s.
The achievement of the taxi industry in the face of such adversity tells an interesting story. First and foremost, it highlights the operational strengths of the taxi industry, its flexibility and ability to adapt. Secondly, it testifies that black people involved in this industry have an eye for business opportunities - they are real entrepreneurs who can compete fairly and openly. However, the greatest threat to the gains and strengths of the industry is the lack of unity and cooperation within the industry.
In a nutshell, the taxi industry is doing a pretty job for our country and providing an important service to our commuters. As we move forward, the industry should understand and appreciate its own strengths and shortcomings. From the side of the Government, we intend to build on the strengths of the taxi industry, rather than to undermine them and address any shortcomings thereof.
Furthermore, it is now critical for the Government to ensure that the other public transport modes compete fairly with the taxi industry. The unfair advantages these other modes have had over the taxi industry for the past years will be removed in future. Government will promote fair competition, whilst ensuring greater integration of the various public transport modes.
However, any assessment of the taxi industry that fails to analyse the roots of its negative, destructive features, will be incomplete. Our analysis and assessment of the state of the industry must strive to be balanced, if we are to provide appropriate and sustainable solutions to the taxi industry. I would be surprised if there are any people today who think that everything in the taxi industry is fine.
I wish to highlight from the Government's point of view some of the problems that characterise this industry. I am convinced that all delegates are aware of these challenges. Our interactions with commuter organisations indicate that commuters are as much concerned about their own safety and the unroadworthy nature of most of the taxi vehicles.
The most critical and immediate challenge facing the taxi industry is safety. There is no doubt that the ageing and unreliable taxi fleet poses serious problems and challenges, not only to the commuters, but to the operators as well. However, given the history of this industry, we all know that there is no capacity for the immediate renewal of the ageing and unreliable taxi fleet. Therefore, Government has a major role to play in this regard, and assist in putting the taxi industry on a new, sustainable path.
Deregulation of the transport sector in the late 1980s brought its own problems. Among the major weaknesses was the failure to effectively regulate the minibus taxi industry. This has seen destructive competition among taxi operators, as well as self-regulation by the taxi industry. In a major way, this was the root cause of the so-called taxi wars that ripped through the industry and our society during the 1990s. In this context, Government will, in the context of amendments to the NLTTA, consult with the taxi industry on the possible establishment of a taxi regulatory council, which could set standards for the industry and advice Government on key policy issues affecting the development of the taxi industry.
It is against this background that Government embarked on the taxi recapitalisation project. The main objective of this initiative is to assist taxi operators to replace their ageing fleet with new taxi vehicles that meet certain Safety Requirements, as published by the Government. I should think that the safety of commuters is not the concern of Government alone, but that of the taxi industry too. Unless we show that we care about the passengers, the image of the taxi industry will not improve and the good progress that you have made as an industry will not be recognised.
There is consensus that we should proceed with the implementation of the taxi recapitalisation project without any further delay. The plan is to allow taxi operators who intend to exit the industry to do so immediately, whilst at the same time enabling other taxi operators whose vehicles could be impoundment due to unroadworthiness to remove their vehicles from our roads. Over the next three months, these operators will be expected to register through the Operating Licensing Boards (OLBs) their intention to exit and voluntarily surrender unroadworthy vehicles in exchange for the R50 000 scrapping allowance.
In addition to the removal and scrapping of the very oldest and unroadworthy taxi vehicles, Government will use the opportunity presented by the taxi recapitalisation project to ensure effective regulation of the industry. It is important for the industry to appreciate that self-regulation breeds conflict and will never assist anyone to achieve the goals that we have set ourselves as a collective.
Government will also use this opportunity to strengthen our capacity for law enforcement. As you are aware, it is the duty and responsibility of Government to ensure that all public transport operators, and not only taxis, observe the rules of the road at all times and show respect to other road users.
Government will always respect the fact that the support given by taxi bodies for the revised approach to the taxi recapitalisation project was not unconditional. The taxi industry in the form of SANTACO and NTA had requested my Department to pay specific attention to the issue of affordability of new taxi vehicles. However, I am confident that working with the industry, the banks and manufacturers, we will be able to ensure that the new vehicles are affordable to the average operator.
As mentioned before, the prices of the new vehicles will not be a function of our safety requirements alone, which we will implement in a phased manner to address concerns of affordability and ability of the manufacturers to meet these safety requirements. But affordability will be determined by other important factors such as the level of competition in the market, willingness and ability of the financial institutions to develop differentiated products suitable to the taxi industry. The taxi industry should also be in a better position to negotiate better terms both the financial institutions and manufacturers. In this regard, Government welcomes the Memorandum of Understanding between SANTACO and the banks, and hope this will benefit the taxi industry as a whole.
Government is conscious of the many challenges that face both manufacturers and operators. For example, the requirement for diesel-propelled vehicles will be handled with care, guided by agreements between Government (Department of Minerals and Energy Affairs) and the automotive industry on the emissions and fuel quality. We are also aware that there have been technological changes and developments allowing for hybrid engines, which contributes to Government's policy aimed at promoting fuel efficient and environmentally sustainable solutions. The manufacturing industry had assured us that they are keen to ensure that the policy goals of Government in regard to fuel use will be taken forward over a period of time.
I wish to also address concerns of many taxi operators that the R50 000 scrapping allowance will be inadequate for them to be able to purchase new vehicles. I must state my determination to make sure that, as many of our operators as possible are able to purchase new taxi vehicles and continue to provide much-needed transport services. However, Government is providing a scrapping allowance only to assist and incentivise taxi operators to be able to renew their vehicles.
However, it is the taxi operators, and not Government, who are ultimately responsible for their businesses and for the choice of vehicles, and as such will still make their business decisions, taking into account the commitment of Government to assist where possible.
Further, taxi operators had raised concerns that Government will scrap old taxi vehicles that still have a value over R50 000, 00. I must assure you that vehicles that were bought recently and still have value will only be considered for scrapping at later phases of the taxi recapitalisation project. Our focus on taxi operators who intend to exit the industry and attempts to remove the very oldest and unroadworthy vehicles is certainly about ensuring that we do not destroy vehicles that still have value.
Government is committed to working with the industry to ensure that the scrapping of vehicles does not destroy vehicles with value, and lead to unintended disruptions within our public transport system. We will need to manage this programme in a more systematic yet bold manner so that the safety of commuters and drivers is enhanced. I must remind the leadership and delegates that we have set ourselves the target that by 2010, 75% of taxis will be new taxi vehicles that meet our safety requirements.
A key element of our regulation will relate to the ownership and management of public transport facilities, especially taxi ranks. Government is not introducing new policies, but need to ensure that provisions of the law are followed. In terms of the Constitution and the law, Municipalities have an important role to play in the planning and delivery of public transport.
Municipalities are responsible for the provision of public transport infrastructure and facilities. As you know, many developments are approved without due cognisance given to public transport requirements.
As you travel around the country, we see informal taxi ranks mushrooming around major shopping malls, with provision made for parking, but without any consideration for pedestrians and public transport inter-modal facilities for buses and taxis. Government is not introducing a new law or provision, but will ensure that municipalities do not abdicate their roles and responsibilities in respect of public transport planning and delivery.
In addition, the lack of effective planning frameworks between the three spheres of Government, and more specifically, the absence of planned public transport systems addressing the transport needs of the public has resulted in destructive competition and violence around lucrative taxi routes and ranks. We are determined to bring an end to such anomalies.
The Department of Transport will also not prescribe the management models for taxi ranks. Municipalities have the right to choose their management formulae which will ensure that taxi ranks and related facilities are properly managed, they are cleaned regularly and there is access for people with disabilities, and security is provided at all time. However, we must also be clear that there is no taxi operator or association that has the authority to prevent other operators from using these facilities.
The leadership of the taxi industry must address problems where other operators are required to pay exorbitant amounts of money in order to use and access what are essentially publicly provided facilities, as well as taxi routes.
The industry must work with us to bring to an end this practice, which undermines the very goal of transformation and empowerment. Many taxi operators are kept prisoners and do not enjoy the freedom that all of us should enjoy under democracy.
Earlier in my address, I suggested that we must adopt a balanced approach when we evaluate the performance of the taxi industry. In developing such a perspective, I know very well that many taxi operators would want to bring to my attention the serious weaknesses that characterises many of the Operating Licensing Boards in the Provinces. I am aware that there has been failure to process applications for conversion of permits into operating licences, applications for transfers and upgrade, including those applications made during the Be Legal Campaign.
But I must say that I still find it unacceptable that applications that should take three months to process actually take three to five years to process. We are committed to work for an accountable Government, and failure by officials to do their work must be exposed and dealt with quite decisively. It does not help when we urge the taxi industry to act in a manner consistent with legislation, when in fact State institutions fail the taxi industry by not upholding requirements of the law.
I wish to take this opportunity to inform delegates, the leadership and management of Top Six that we have decided with the MECs responsible for Transport that the OLBs be strengthened so that they could provide streamlined and efficient services to the taxi industry.
We are hard at work to ensure that the various applications are processed within the required timeframes provided by the legislation.
The implementation of the taxi recapitalisation project should also address the outstanding issue relating to the issuing of new permits or operating licences. For now, I wish to urge taxi operators to send in their applications, as they are doing all around the country, for the conversion of their permits into licences by 31 August 2005.
Government's plans for the taxi industry are not limited to the recapitalisation of the taxi fleet. We have put in place a comprehensive strategy that also seeks to empower the taxi industry and set it on a sustainable path. Our strategy will lay foundation so that in the near future we do not embark on yet another taxi recapitalisation project.
It is important and necessary for the taxi industry to begin to take ownership and control of key strategic elements of the value and supply chain to the industry. I am encouraged that Top Six Management and other taxi business entities are beginning to move in that direction if what one hears from the market is reliable and correct.
Government will endorse initiatives aimed at ensuring that the taxi industry develop business interests in sectors such as petroleum, financial sector, vehicle manufacturing, and wheel and tyre sectors and where suppliers benefit from the taxi industry.
Many opportunities are opening up in the taxi industry following the redesign of the public transport system and the acceleration of the ANC Government's programme of economic transformation. We are in the process of completing the Transport Sector BEE Charter, which should give further impetus to the empowerment process. I have instructed the Department to engage with the taxi industry with the view to completing this chapter by October 2005. I am confident that the taxi chapter of the Transport Sector BEE Charter will also set us on a path where the industry is strengthened.
In addition, we have published the Model Tender Document, which make provision for the participation of the taxi industry in subsidised public transport services. Many of the current public transport services will be taken out on tender, starting this year. I hope and trust that the taxi industry will organise itself into appropriate business models and take advantage of this economic opportunities.
In closing, I wish to once again thank the leadership and delegates for the invitation to address your Annual general Meeting (AGM). I had come here to deliver a message of hope and to assure you that our Government and our movement, the ANC, could not work against the interests of the taxi industry.
We are here to further strengthen and empower an industry that is synonymous and has everything in common with the disadvantaged masses of our people. For us, a strong, safe and vibrant taxi industry remains a vital element in Government's efforts to bring about significant improvements in our public transport system. The opportunities are found and will be created through greater integration of taxi operations into high quality, reliable and coherent public transport services. Once again, I invite the taxi industry to work with Government towards these noble objectives and to consciously contribute to changing the travel experiences of many of our people.
I thank you!
Issued by: Department of Transport
18 August 2005
Source: Department of Transport
Title: Radebe: Top Six Management Ltd AGM
Address by Mr JT Radebe, MP, Minister of Transport at the Annual General Meeting of Top Six Management Ltd held at the Durban Exhibition Centre
It is my pleasure to be here with you this morning. The Annual General Meeting of Top Six Taxi Management Company is no ordinary event. It is a gathering, which taxi associations and operators and our Government look forward to with interest and expectation. The decision to turn Top Six into a business entity was an important milestone in the history and advancement of the taxi industry. It is indeed part of the broader process to ensure that black people have ownership, control and meaningful participation in the mainstream of our economy.
I am today encouraged to see that taxi operators all over the country are beginning to form themselves into business entities with the view to take full advantage of the many opportunities created by economic transformation undertaken by our African National Congress (ANC) Government. Again, the ANC Government is not there to destroy and destabilise the taxi industry, but is committed to work with you all as pillars of the only industry that is black-owned and controlled, and for the benefit of the majority of South Africans. I will return to this theme later in my address.
When we look back, we are bound to conclude that the taxi industry has been through a long and arduous path. Top Six itself was formed in response to the difficult conditions of the 1990s. The defining feature of the industry and political transformation that were taking place at that time had to face to the daunting challenge of violence that threatened to engulf both the taxi industry and our entire society. Today, Top Six is a fully-fledged business entity that seeks to address the "economic and social needs of its broad-based membership".
This major transformation, and the fact that we are meeting under normal and stable conditions within the industry and our country, should continue to serve as a reminder of the progress we are making as South Africans to build a country that truly belongs to all. Again, these achievements were not an accident of history, but were rather a direct outcome of the decisive and visionary leadership of the ANC as an organisation and leadership within many civil society formations such as Top Six, as well as the active participation of millions of ordinary South Africans. We will need to build on this genuine South African tradition in order to transform the taxi industry and our country for the better.
We will need to go back to the history of the taxi industry in order to take advantage of the economic opportunities. The taxi industry has demonstrated beyond doubt that it is strong and resilient. The apartheid government did not view the taxi industry as part of the formal public transport system and denied it access to the subsidy and other forms of support.
As a result, we have a public transport system where other subsidised land transport, especially the bus industry, had enjoyed enormous privileges over the taxi industry. This unfair treatment was not only limited to subsidies, but also extended to the taxi industry denied of access to basic facilities such as well-structured taxi ranks. Many of the taxi ranks and facilities, as well as routes, were opened as a result of struggles waged by black taxi operators. It is this history that perhaps explains how taxi associations and their members have become so protective of their turf by impeding access to lucrative routes and ranking facilities to ranking facilities for operators from rival associations. We all know that this has resulted in conflict within the taxi industry.
As you could determine, other industries would have simply given up against a powerful State, which was hostile and kept the pressure through harassment of black taxi operators. However, taxi operators did not yield to the pressures and continue to provide a service. Despite the unfair treatment, taxi operators did not yield to the pressures but continued to provide a service to the public successfully as a result capturing a big share of the public transport passenger market.
The fundamental truth, which we must all accept, is that the taxi industry has been able to respond to and meet passenger demands more than any other public transport mode. The taxi industry was able to take advantage of the gaps in the formal public transport system, and positioned itself as the public transport mode of choice. Of course, the industry was also able to further take advantage when the Apartheid Government deregulated the industry in the late 1980s.
The achievement of the taxi industry in the face of such adversity tells an interesting story. First and foremost, it highlights the operational strengths of the taxi industry, its flexibility and ability to adapt. Secondly, it testifies that black people involved in this industry have an eye for business opportunities - they are real entrepreneurs who can compete fairly and openly. However, the greatest threat to the gains and strengths of the industry is the lack of unity and cooperation within the industry.
In a nutshell, the taxi industry is doing a pretty job for our country and providing an important service to our commuters. As we move forward, the industry should understand and appreciate its own strengths and shortcomings. From the side of the Government, we intend to build on the strengths of the taxi industry, rather than to undermine them and address any shortcomings thereof.
Furthermore, it is now critical for the Government to ensure that the other public transport modes compete fairly with the taxi industry. The unfair advantages these other modes have had over the taxi industry for the past years will be removed in future. Government will promote fair competition, whilst ensuring greater integration of the various public transport modes.
However, any assessment of the taxi industry that fails to analyse the roots of its negative, destructive features, will be incomplete. Our analysis and assessment of the state of the industry must strive to be balanced, if we are to provide appropriate and sustainable solutions to the taxi industry. I would be surprised if there are any people today who think that everything in the taxi industry is fine.
I wish to highlight from the Government's point of view some of the problems that characterise this industry. I am convinced that all delegates are aware of these challenges. Our interactions with commuter organisations indicate that commuters are as much concerned about their own safety and the unroadworthy nature of most of the taxi vehicles.
The most critical and immediate challenge facing the taxi industry is safety. There is no doubt that the ageing and unreliable taxi fleet poses serious problems and challenges, not only to the commuters, but to the operators as well. However, given the history of this industry, we all know that there is no capacity for the immediate renewal of the ageing and unreliable taxi fleet. Therefore, Government has a major role to play in this regard, and assist in putting the taxi industry on a new, sustainable path.
Deregulation of the transport sector in the late 1980s brought its own problems. Among the major weaknesses was the failure to effectively regulate the minibus taxi industry. This has seen destructive competition among taxi operators, as well as self-regulation by the taxi industry. In a major way, this was the root cause of the so-called taxi wars that ripped through the industry and our society during the 1990s. In this context, Government will, in the context of amendments to the NLTTA, consult with the taxi industry on the possible establishment of a taxi regulatory council, which could set standards for the industry and advice Government on key policy issues affecting the development of the taxi industry.
It is against this background that Government embarked on the taxi recapitalisation project. The main objective of this initiative is to assist taxi operators to replace their ageing fleet with new taxi vehicles that meet certain Safety Requirements, as published by the Government. I should think that the safety of commuters is not the concern of Government alone, but that of the taxi industry too. Unless we show that we care about the passengers, the image of the taxi industry will not improve and the good progress that you have made as an industry will not be recognised.
There is consensus that we should proceed with the implementation of the taxi recapitalisation project without any further delay. The plan is to allow taxi operators who intend to exit the industry to do so immediately, whilst at the same time enabling other taxi operators whose vehicles could be impoundment due to unroadworthiness to remove their vehicles from our roads. Over the next three months, these operators will be expected to register through the Operating Licensing Boards (OLBs) their intention to exit and voluntarily surrender unroadworthy vehicles in exchange for the R50 000 scrapping allowance.
In addition to the removal and scrapping of the very oldest and unroadworthy taxi vehicles, Government will use the opportunity presented by the taxi recapitalisation project to ensure effective regulation of the industry. It is important for the industry to appreciate that self-regulation breeds conflict and will never assist anyone to achieve the goals that we have set ourselves as a collective.
Government will also use this opportunity to strengthen our capacity for law enforcement. As you are aware, it is the duty and responsibility of Government to ensure that all public transport operators, and not only taxis, observe the rules of the road at all times and show respect to other road users.
Government will always respect the fact that the support given by taxi bodies for the revised approach to the taxi recapitalisation project was not unconditional. The taxi industry in the form of SANTACO and NTA had requested my Department to pay specific attention to the issue of affordability of new taxi vehicles. However, I am confident that working with the industry, the banks and manufacturers, we will be able to ensure that the new vehicles are affordable to the average operator.
As mentioned before, the prices of the new vehicles will not be a function of our safety requirements alone, which we will implement in a phased manner to address concerns of affordability and ability of the manufacturers to meet these safety requirements. But affordability will be determined by other important factors such as the level of competition in the market, willingness and ability of the financial institutions to develop differentiated products suitable to the taxi industry. The taxi industry should also be in a better position to negotiate better terms both the financial institutions and manufacturers. In this regard, Government welcomes the Memorandum of Understanding between SANTACO and the banks, and hope this will benefit the taxi industry as a whole.
Government is conscious of the many challenges that face both manufacturers and operators. For example, the requirement for diesel-propelled vehicles will be handled with care, guided by agreements between Government (Department of Minerals and Energy Affairs) and the automotive industry on the emissions and fuel quality. We are also aware that there have been technological changes and developments allowing for hybrid engines, which contributes to Government's policy aimed at promoting fuel efficient and environmentally sustainable solutions. The manufacturing industry had assured us that they are keen to ensure that the policy goals of Government in regard to fuel use will be taken forward over a period of time.
I wish to also address concerns of many taxi operators that the R50 000 scrapping allowance will be inadequate for them to be able to purchase new vehicles. I must state my determination to make sure that, as many of our operators as possible are able to purchase new taxi vehicles and continue to provide much-needed transport services. However, Government is providing a scrapping allowance only to assist and incentivise taxi operators to be able to renew their vehicles.
However, it is the taxi operators, and not Government, who are ultimately responsible for their businesses and for the choice of vehicles, and as such will still make their business decisions, taking into account the commitment of Government to assist where possible.
Further, taxi operators had raised concerns that Government will scrap old taxi vehicles that still have a value over R50 000, 00. I must assure you that vehicles that were bought recently and still have value will only be considered for scrapping at later phases of the taxi recapitalisation project. Our focus on taxi operators who intend to exit the industry and attempts to remove the very oldest and unroadworthy vehicles is certainly about ensuring that we do not destroy vehicles that still have value.
Government is committed to working with the industry to ensure that the scrapping of vehicles does not destroy vehicles with value, and lead to unintended disruptions within our public transport system. We will need to manage this programme in a more systematic yet bold manner so that the safety of commuters and drivers is enhanced. I must remind the leadership and delegates that we have set ourselves the target that by 2010, 75% of taxis will be new taxi vehicles that meet our safety requirements.
A key element of our regulation will relate to the ownership and management of public transport facilities, especially taxi ranks. Government is not introducing new policies, but need to ensure that provisions of the law are followed. In terms of the Constitution and the law, Municipalities have an important role to play in the planning and delivery of public transport.
Municipalities are responsible for the provision of public transport infrastructure and facilities. As you know, many developments are approved without due cognisance given to public transport requirements.
As you travel around the country, we see informal taxi ranks mushrooming around major shopping malls, with provision made for parking, but without any consideration for pedestrians and public transport inter-modal facilities for buses and taxis. Government is not introducing a new law or provision, but will ensure that municipalities do not abdicate their roles and responsibilities in respect of public transport planning and delivery.
In addition, the lack of effective planning frameworks between the three spheres of Government, and more specifically, the absence of planned public transport systems addressing the transport needs of the public has resulted in destructive competition and violence around lucrative taxi routes and ranks. We are determined to bring an end to such anomalies.
The Department of Transport will also not prescribe the management models for taxi ranks. Municipalities have the right to choose their management formulae which will ensure that taxi ranks and related facilities are properly managed, they are cleaned regularly and there is access for people with disabilities, and security is provided at all time. However, we must also be clear that there is no taxi operator or association that has the authority to prevent other operators from using these facilities.
The leadership of the taxi industry must address problems where other operators are required to pay exorbitant amounts of money in order to use and access what are essentially publicly provided facilities, as well as taxi routes.
The industry must work with us to bring to an end this practice, which undermines the very goal of transformation and empowerment. Many taxi operators are kept prisoners and do not enjoy the freedom that all of us should enjoy under democracy.
Earlier in my address, I suggested that we must adopt a balanced approach when we evaluate the performance of the taxi industry. In developing such a perspective, I know very well that many taxi operators would want to bring to my attention the serious weaknesses that characterises many of the Operating Licensing Boards in the Provinces. I am aware that there has been failure to process applications for conversion of permits into operating licences, applications for transfers and upgrade, including those applications made during the Be Legal Campaign.
But I must say that I still find it unacceptable that applications that should take three months to process actually take three to five years to process. We are committed to work for an accountable Government, and failure by officials to do their work must be exposed and dealt with quite decisively. It does not help when we urge the taxi industry to act in a manner consistent with legislation, when in fact State institutions fail the taxi industry by not upholding requirements of the law.
I wish to take this opportunity to inform delegates, the leadership and management of Top Six that we have decided with the MECs responsible for Transport that the OLBs be strengthened so that they could provide streamlined and efficient services to the taxi industry.
We are hard at work to ensure that the various applications are processed within the required timeframes provided by the legislation.
The implementation of the taxi recapitalisation project should also address the outstanding issue relating to the issuing of new permits or operating licences. For now, I wish to urge taxi operators to send in their applications, as they are doing all around the country, for the conversion of their permits into licences by 31 August 2005.
Government's plans for the taxi industry are not limited to the recapitalisation of the taxi fleet. We have put in place a comprehensive strategy that also seeks to empower the taxi industry and set it on a sustainable path. Our strategy will lay foundation so that in the near future we do not embark on yet another taxi recapitalisation project.
It is important and necessary for the taxi industry to begin to take ownership and control of key strategic elements of the value and supply chain to the industry. I am encouraged that Top Six Management and other taxi business entities are beginning to move in that direction if what one hears from the market is reliable and correct.
Government will endorse initiatives aimed at ensuring that the taxi industry develop business interests in sectors such as petroleum, financial sector, vehicle manufacturing, and wheel and tyre sectors and where suppliers benefit from the taxi industry.
Many opportunities are opening up in the taxi industry following the redesign of the public transport system and the acceleration of the ANC Government's programme of economic transformation. We are in the process of completing the Transport Sector BEE Charter, which should give further impetus to the empowerment process. I have instructed the Department to engage with the taxi industry with the view to completing this chapter by October 2005. I am confident that the taxi chapter of the Transport Sector BEE Charter will also set us on a path where the industry is strengthened.
In addition, we have published the Model Tender Document, which make provision for the participation of the taxi industry in subsidised public transport services. Many of the current public transport services will be taken out on tender, starting this year. I hope and trust that the taxi industry will organise itself into appropriate business models and take advantage of this economic opportunities.
In closing, I wish to once again thank the leadership and delegates for the invitation to address your Annual general Meeting (AGM). I had come here to deliver a message of hope and to assure you that our Government and our movement, the ANC, could not work against the interests of the taxi industry.
We are here to further strengthen and empower an industry that is synonymous and has everything in common with the disadvantaged masses of our people. For us, a strong, safe and vibrant taxi industry remains a vital element in Government's efforts to bring about significant improvements in our public transport system. The opportunities are found and will be created through greater integration of taxi operations into high quality, reliable and coherent public transport services. Once again, I invite the taxi industry to work with Government towards these noble objectives and to consciously contribute to changing the travel experiences of many of our people.
I thank you!
Issued by: Department of Transport
18 August 2005
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