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Radebe: Transport Dept Budget Vote 2003/2004, NCOP (29/05/2003)

29th May 2003

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Date: 29/05/2003
Source: Ministry of Transport
Title: Radebe: Transport Dept Budget Vote 2003/2004, NCOP


NATIONAL DEPARTMENT OF TRANSPORT POLICY DEBATE ON BUDGET VOTE NO 33 BY JEFF RADEBE, MP, ACTING MINISTER OF TRANSPORT, 29 May 2003

Madam Chairperson
Honourable Members of the NCOP

Madam Chairperson, as we continue to face the challenges of improving our transport system in general, we constantly remind ourselves of a vision we set at the time of developing our White Paper on Transport Policy. Our vision to "provide safe, reliable, effective and fully integrated transport operations and infrastructure..." is still relevant today as it was in 1996. On one hand, transport holds the key to economic growth in the country, because without the means and capacity to move people and goods efficiently, we stand still as a nation. On the other hand, our social role is to provide for the transport needs of people on an affordable basis, whilst we also address the gross distortions inherited from the apartheid government.

Madame Chairperson, today I will confine my input to three (3) critical areas of our work, namely, road infrastructure, transport safety and public transport.

Let me first begin with road infrastructure, I am pleased to confirm here today that Cabinet has approved a five-year Road Infrastructure Strategy, which will prevent further deterioration of our road network. Funds for the implementation of this strategy have already been projected for, and are included in the current budget allocations under the Medium Term Expenditure Framework (MTEF). A great deal of work needs to be done over the next five years on rural community roads, routine maintenance, resealing and gravelling, rehabilitation and overheads. Provinces and local authorities will need to identify priority projects. I will shortly convene a special Minmec to discuss fast-tracking the planning process.

Madame Chairperson, my focus today will be on provincial road infrastructure service delivery.

Provinces face serious challenges in dealing with maintenance and rehabilitation backlogs. A balance has to be struck between the provision of resources for routine maintenance of the existing road network, the rehabilitation of poor roads and investment in the construction of new roads to improve accessibility. Allocations for construction and rehabilitation of roads across the provinces fluctuate. However, there is a clear increase in allocations for maintenance. There has been a marked turnaround in spending on roads, particularly since the floods experienced in 2001.

The recently completed Intergovernmental Fiscal Review of 2003 (IGFR) shows that provinces account for the most spending on roads. Provincial budgets will increase by 7.5% from R4.7 billion in 2002/03 to R5.1 billion in 2003/04. They are projected to increase further by 9.5 % over the MTEF, reaching R6.2 billion in 2005/06.

In the 2002/03, the total provincial budget for spending on constructing and upgrading of roads amounted to R 2.2 billion. Following a budgeted decline in spending to R1, 9 billion in 2003/04, expenditure is projected to rise to R2,5 billion in 2005/06.

Provinces have had varying degrees of success in delivery. The key constraint relate to the availability of funds. For example in 2002/03 Limpopo required R318 million to maintain its roads and to prevent further damage, R110 million was allocated in its budget, leaving a shortfall of R208 million. Western Cape indicated that only 14% of re-graveling, 45% of resealing needs, 39% and 60% of the routine maintenance of gravel and surfaced road network respectively could be met with the 2002/03 budget.

Notwithstanding these budgetary constraints, most provinces were able to achieve commendable results in the areas of new road construction; maintenance and rehabilitation; development of community access roads through labour intensive construction aimed at employment creation. The implementation of Zibambele (KZN), Zivuseni (Gauteng) and Vukuzakhe (Eastern Cape), which are labour-based construction programmes, are examples of key successes of community-based road programmes.

In the context of the Integrated Sustainable Rural Development and the Urban Renewal Programmes the department is supporting the implementation of projects in the following nodes: Chris Hani, Ukhahlamba, O.R. Tambo, Alfred Nzo, Thabo Mofutsanyana, Ugu, Umzinyathi, Zululand, Umkhanykude, Sekhukhune, Bohlabela, Kgalakgadi and Central Karoo as well as Ethekwini, Galeshewe, Alexandra and Khayelitsha.

The department is also working closely with the Department of Provincial and Local Government in the process of consolidating the various municipal infrastructure grants (urban transport fund, consolidated municipal infrastructure grant, community-based public works programme and others) into one municipal infrastructure grant. Pilot projects in the following district municipalities are under away: Sekhukhune, Bohlabela, Kgalakgadi, Motheo, Thabo Mofutsanyana, Alfred Nzo, O.R. Tambo, Nelson Mandela Metropolitan and Ethekwini.

Public Transport

Madame Chairperson, let me highlight one of the key challenges we are facing in public transport, that of the provision of passenger transport subsidies.

As you are aware, due to the funding constraints related to public transport subsidies, my department in December 2001 introduced a moratorium on the further implementation of competitive tendering.

In December 2002, MinCom (Ministerial Conference of Ministers of Transport) decided that this moratorium should be lifted and that provinces should without any delay pursue the implementation of competitive tendering. In order to facilitate this, government is in the process of finalising the model tender document to be published in terms of the National Land Transport Transition Act, 2000.

The model tender document incorporates the heads of agreement between government, labour and the industry and all parties have raised various concerns regarding the physical implementation of this agreement. Therefore, government has decided that before this model tender document can be published, government will enter into negotiations with organised labour and the industry concerning the implementation of the heads of agreement.

Targeting of subsidies

Mobility in South Africa cannot be isolated from the history of the country and the detrimental effect that segregated planning has had on the travelling patterns of the majority of the people of this country and eventually on the viability of public transport.

The House may recall that due to the ever-increasing need for passenger transport subsidies, an investigation was concluded towards the end of 2002, which focused on passenger profiles and the targeting of public transport subsidies.

Targeting was identified as a mechanism to ensure that the most deserving users of public transport are identified and targeting will further seek to enhance government's objective of poverty alleviation.

Public transport is a basic need and subsidies should be allocated in line with income distribution. Therefore, areas with low-income households should be targeted. The current practice is that the majority of subsidies are paid to higher income urban areas.

Targeting of subsidies is, however, a complex issue and there are various international best practise-models. The challenge that we are facing is to develop a model that serves government's social and economic imperatives as well as the interest of the public in general.

Now turning to minibus-taxis

Madam Chairperson, in the light of recent media statements, I would like to assure the House that government is still committed to the Recapitalisation Programme and I will do everything in my power to address the differences which exist between government and the taxi industry.

Although the tender for the new taxi vehicles and the related Electronic Management System (EMMS) is mainly driven by the Departments of Transport and Trade and Industry, provinces have a key role to play in the rollout of the programme. For example, provinces have been and still continue to be responsible for the implementation of the key components of the taxi Recapitalisation Programme, such as the be Legal Campaign, registrations with the South African Revenue Services, conversions from taxi permits to operating licenses, etc.

As you are aware, the be Legal Campaign was initiated to provide a window to those illegal operators not complying with certain criteria as set out in the National Land Transport Transition Act, 2000. This is a mammoth task and according to reports provided by the provinces, most of them are currently adjudicating the applications. I would however like to request provinces to prioritise this exercise, as it is critical to finalise the total number of operators, who are to take part in the Recapitalisation Programme and the effect thereof on the affordability of the programme to the industry and government.

Another very important process is the registration of taxi operators with the South African Revenue Services (SARS), which is a legislative requirement. In a joint effort between Ndot, provinces, the taxi industry and SARS, guidelines have been developed for the registration of operators. These guidelines have subsequently been adopted by all role players and provinces are now requested to expedite the implementation thereof.

Similarly, the conversion of permits to operating licenses, which will be renewable after every five years, is critical. Only operators with operating licenses can take part in the Recapitalisation Programme. It is therefore essential that the Provincial Operating Licensing Boards embark upon this process in time in order to ensure maximum participation of operators in the Recapitalisation Programme.

Due to the complexity of the processes required for the rolling out of the taxi Recapitalisation Programme, there are many challenges still to be addressed. Measures have already been taken to facilitate the identification of gaps in the process, recommending measures to address those gaps and further assisting in monitoring the rollout of the project.

Commuter rail

The extension of the Khayelitsha commuter rail line has been on the cards for the last 20 years. This project has now become a reality and I am pleased to inform the House that my department has managed to secure R140 million for the project. These funds should be adequate in order to proceed with the actual construction of the rail line, the provision of the rail infrastructure and the refurbishment of the rolling stock that will be required once the extension has been completed. It is expected that the construction of the rail extension will be completed at the end of December 2005.

Madam Chairperson, I am pleased to inform the House of the progress we have made with the upgrading of the Mabopane station. Last year, the House was informed that an amount of R15 million was set aside for the redevelopment of this particular station. Substantial progress has been made - the precinct development plan and master plan for the station have been completed. Currently contractors have been appointed mainly from the local community to undertake rehabilitation of services such as storm water system, water reticulation and electricity. The physical construction of the project will be officially launched on the 2 June 2003.

On railway safety, we are committed towards ensuring the safety and security of passengers and goods on the railway transport system, addressing railway occurrences as well as the security of passengers.

I am pleased to report that I will soon announce the names of the Board of Directors for the newly established Railway Safety Regulator, which will regulate safety by setting standards in the railway transport system. A lot of work has been done in laying the foundation for the new regulatory body and clear regulations and standards have been developed in consultation with the SABS, Department of Labour and other stakeholders in the industry.

Over the past year the Ndot, SARCC and Metrorail have begun to develop a new two-pronged safety and security strategy for the rail commuter system. The safety and security strategy has been deployed, as a pilot project, in the entire Western Cape Metropolitan Rail Network since October 2002 with very positive results.

In further advancing commuter rail safety, I have approved a project to audit the current status of commuter rail stations and the capital investment needs to ensure compliance with safety and other legislative requirements.

The outcome of the project will define the operational, infrastructure and facility adequacy gaps in both financial and physical terms and will determine whether the current investment profile of the commuter rail system needs to be re-aligned. I will inform the House of the outcome of this study as soon as this project is completed.

Madam Chairperson, one of the fundamental issues that cut across public transport and infrastructure development is that of transport planning.

The rollout of the first phase of the transport planning was embarked upon nationally in 2002/03 financial years.

Certain focal areas were chosen on the basis of testing the planning processes under different circumstances. Some of the rural nodes were identified while urban areas were also targeted. This approach ran parallel with the rollout of transport planning in general in the rest of the country. On reviewing the processes, it was clear that there were limitations in various processes, for example, procurement processes at provincial and local sphere were cumbersome and delayed progress.

In order to address the transport planning capacity limitations at local and provincial sphere, my department is embarking on a training program that will be rolled out in all the provinces around October this year. With regard to funding, an amount of R3 million was transferred to each of the provinces in the two previous financial years and a further R2 million has already been transferred in the current financial year.

As in the past, my department also focused on the developmental nodes:

Firstly with regard to urban renewal, we are currently involved directly with three of the identified urban nodes. Delivery of public transport infrastructure is the focus in Alexandra, Amanda/Kamahi and Khayelitsha. In Alexandra a public transport interchange is to be developed together with the city of Johannesburg and it will be completed in the current financial year.

Various upgrading and provision of safe access to taxi facilities will be embarked upon in the Inanda/Kwamashu node. Considering the need to promote non-motorised transport, my department is working closely with the Sol Plate Municipality in Northern Cape to extend the bicycle paths in that area.

With regard to rural transport, the department has conducted strategic transport audits in all 13 of the integrated and sustainable rural development nodes, the findings of which will inform the concrete actions that the department will facilitate through pilot projects. In addition, the department's newly established infrastructure unit has prioritised the development of rural access infrastructure as part of its road infrastructure strategic framework.

The issue of road safety continues to receive priority attention in the department. I need not repeat the daily tragic loss of lives on our roads on a daily basis. The statistics that are continuously released by the department speak for themselves and we cannot allow this scourge to continue at current levels, as it is every South African's right to travel safely on our roads.

The Department of Transport, in collaboration with provinces and local governments, is hard at work to turnaround the current situation. We have assessed issues that require urgent attention, and through a consultative process involving various role players and input provided by the various provinces, the following key interventions have been identified for development and implementation in the short to medium term. These are the following:

* Integrated law-enforcement and communication, which involves the development and implementation of a co-ordinated plan for traffic law-enforcement and support services. This seeks to eliminate fragmentation in law enforcement and the promotion of a co-operative, uniform and focussed approach, towards the undertaking of law enforcement across provincial boundaries
* Conducting a forensic audit into road traffic accident statistics, leading to the establishment of the national road traffic accident bureau. The current fragmented responsibilities across many authorities, together with insufficient resources, have led to a dramatic deterioration of the quality of formal accident information over the last 3 years. The objective of the project is to undertake a complete and detailed forensic investigation into the current system of recording, capturing, analysing and transferring of accident information. To this end, a reliable system is being developed and will soon be implemented
* Hazardous locations were identified in provinces and there is currently ongoing work to improve safety in those locations. For example, notable improvements have been made in 4 locations in Gauteng, 5 in North West and 10 in the Western Cape. Furthermore, a pedestrian visibility project has been set up in order to improve visibility of vulnerable pedestrians in and around high risk and accident-prone areas (identified hazardous locations)
* Establishing community-based structures that will coordinate, educate, create awareness and encourage community participation in road safety programmes; and
* Amending the road traffic legislation in order to give effect to some of the principal strategies contained in the road to safety strategy.

All of the above interventions are aimed at the elimination of fragmentation between the various authorities and improved coordination of efforts amongst functional areas in road traffic; optimisation of the utilisation of scarce resources; introduction of the use of modern technology; as well as the enhanced implementation of some of the aims and objectives of the Road to Safety Strategy 2001-2005.

In conclusion, Madame Chairperson, I wish to restate that transport plays a critical role in addressing social needs and contributing towards growth in the economy. More than any other sector, the transport sector is divided into three spheres of government and as a result requires the highest level of cooperation. This co-operation is particularly critical for the current implementation of infrastructure projects, road safety interventions and in public transport provision. This therefore compels us to share a common planning vision. I want to thank the national council of provinces as well as my provincial colleagues for the continuous support and contribution in shaping this vision as well as in the achievement of the objectives we have set. We are still faced with massive challenges ahead; I look forward to your support as we address the challenges in the days ahead.

Thank you

Issued by Ministry of Transport
29 May 2003
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