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Radebe: Western Cape scrapping of old taxi vehicles (15/02/2007)

15th February 2007

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Date: 15/02/2007
Source: Department of Transport
Title: Radebe: Western Cape scrapping of old taxi vehicles


Address at the scrapping of old taxi vehicles by Mr Jeff Radebe, MP, Minister of Transport, Erica Stadium, Belhar, Western Cape

Programme Director,
Premier Ebrahim Rasool,
MEC of Transport, Marius Fransman
MEC of Community Safety, Leonard Ramatlakane,
Representatives of the Taxi Industry,
Distinguished guests,
Members of the media,
Ladies and gentlemen,
The Taxi Recapitalisation Programme (TRP) is coming a long way and is going ahead. Today we are here to witness the scrapping of old and unroadworthy taxi vehicles and introducing the new taxi vehicles approved by the South African National Standards.

This is part of government's commitment to implement the Taxi Recapitalisation Programme, to improve public transport and make it much easier for South African commuters to travel to their places of need. The TRP is not a stand-alone public transport project, but is linked to the development of Integrated Transport Plans (ITPs) at provincial and local level, ensuring that the taxi industry will participate in the overall subsidised network of public transport provision through structured contracts.

Although a large number of commuters rely on taxis to get to and from work each day, a large number complain vigorously about the attitudes of some taxi drivers, their safety, their comfort and the high costs of taxi fares. The TRP is aimed at addressing these challenges. It is encouraging that about 300 taxi operators in this province have applied to scrap their old taxi vehicles. Forty of these operators have plans to venture into other businesses.

The Western Cape Operating Licensing Board approved 7 873 applications for conversions. However 408 taxi operators need to collect their operating licences from the Board. The operating License Board has performed very well in processing the conversions. Only 111 applications were not approved. This progress is an indication of the Western Cape Taxi Industry's support for the Taxi Recap.

Nationally there is overwhelming support for ensuring legal operations and 98 000 applications for conversion have been processed. Effective transport systems and infrastructure are critical in increasing the rate of investment in the First Economy and reducing the cost of doing business. We are therefore determined to move earnestly with many initiatives that form part of a comprehensive public transport strategy in all modes of transport to improve the lives of all people.

With regard to TRP most of you are aware that it took government, manufacturers, financial institutions and the taxi industry years of negotiations to be where we are today. I must applaud the efforts of all those who are heeding our call to provide our people with safer, affordable, reliable and sustainable public transport. My sincere appreciation goes to all my provincial colleagues, MECs for Transport, Roads and Community Safety in all nine provinces for their commitment to the Taxi Recap Programme. The prevention and reduction of accidents through the removal of old and unroadworthy taxi vehicles is one of the most important aspects of the TRP. My department has developed the Public Transport Strategy, which is aimed at accelerating the improvement of public transport. The Taxi Recap Project is aligned to the strategy and is linked to the Transport Plans of municipalities. Government is also taking the initiative to transform the bus subsidy system so that public transport is subsidised based on services irrespective of whether it is taxi or bus services.

I must stress that the taxi industry also needs to get their house in order and improve their services by offering adequate services, by improving driver attitude towards customers and other road users and to make sure that their vehicles are maintained regularly. All these aspects will improve patronage and will attract new users. But the taxi industry should consider themselves part of the public transport family and work closely with government, the rail sector and bus industry to make public transport a success.

To date over 1 000 old taxi vehicles have been scrapped and the scrapping allowances paid over to the owners. The Scrapping Agency appointed to run the scrapping process is inundated with applications on a daily basis and R50 million in scrapping allowances has been paid to date with 658 applications amounting to R32 million being processed. Government has committed R7,7 billion for the TRP so that taxis that transport commuters are safe, roadworthy and legally entitled to do so.

The taxi industry transports more than 65% of our commuters to and from work everyday and the taxi industry must ensure that these services can be provided with ease. We are therefore determined to make sure that the lives of all commuters are in safe hands through the provision of safer taxis. It is encouraging to note that provinces are moving ahead as planned with the scrapping of old taxi vehicles.

Last year on 28 October we scrapped old taxi vehicles and launched new ones in the Free State province. This was followed by KwaZulu-Natal, Eastern Cape, Northern Cape and today we are here in the Western Cape. Next week we are heading for the Limpopo province. I am glad that operators are positively responding to the government's call of ensuring that the lives of commuters are safe by purchasing the New Taxi Vehicles. I must also stress and reiterate what President Mbeki said last week in the State of the Nation Address that government will not be bullied into abandoning the TRP.

No amount of intimidation will stop the TRP from forging ahead. Government will continue to engage with issues of the TRP through the South African National Taxi Association Council (SANTACO) as an umbrella body of the Taxi Industry. I want to urge the Taxi Industry in its entirety to participate in SANTACO structures and ensure that this participation is taken to greater heights. I would like to say to the Premier, today your province is endorsing a new chapter in the history of the Taxi Recapitalisation Programme.

As all provinces are making inroads into this programme, I urge all MECs to keep our commitment of ensuring that we recapitalise 90% of the old taxis by 2010. Most of you could be aware that manufacturers have been hard at work to show that they are also dedicated to the implementation of the TRP. To address this they are making sure that the industry will never run out of the New Taxi Vehicles. Operators have various categories of taxis to choose from.

The following vehicles have been certified by the South African National Standards: Under the minibus category: Toyota Quantum (14 seater) Nissan Interstar (15 seater) Fiat Ducao (15 seater) Mercedes Benz 308 CDI (16 seater) Peugeot Boxer HDI (16 seater). Under the midi-bus category: Mercedes Benz (22 seater) Marcopolo Volare Short Wheel Base A8 (22seater) Iveco 50C14V15 (22 seater), Marcopolo Volare Long Wheel Base A8 (26 seater), Isuzu NQR 500 (35 seater). This list of taxis has different prices that operators can choose from.

We appreciate and thank the work being done by the manufacturers to provide taxis with compliant safety requirements. I am impressed by the Western Cape province's shaping of its transport systems as it gears up to face the demands of the 2010 FIFA World Cup and beyond. The public transport challenges in this province are huge and unique given the realities that the province is vast with huge infrastructural backlogs. This province has always been performing well when it comes to pursuing the agenda for the transformation of the taxi industry.

The enthusiasm on the part of the industry to participate in the Recapitalisation Programme is supported by the fact that most operators have submitted applications to have their permits converted into operating licences, as is a prerequisite for operators to participate in the TRP. In conclusion our government doors are open for constructive engagement with the industry.

Government is embarking on the TRP for the sake of safeguarding its people from accidents and reduce the cost to the economy and not to promote the interests of various divided factions in the taxi industry. The TRP will go ahead as planned and I call upon all South Africans to support this programme with dedication and determination.

I thank you!

Issued by: Department of Transport
15 February 2007
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