Finance Minister Pravin Gordhan announced a special appropriation of R5.8-billion to the South African National Roads Agency (Sanral) for its Gauteng Freeway Improvement Project (GFIP) in efforts to reduce the toll motorists will pay for use of the highways.

Gordhan, announcing the Budget for 2012, said government aimed to reduce the R20-billion debt to be paid through the toll system and enable a further discount for regular users of the freeway.

However, despite an ongoing public outcry, as well as a threat of protest action the Congress of South African Trade Unions (Cosatu), the system would not be done away with and tolling would now start on April 30, 2012. In fact, Gordhan described the compromise as government's final offer and called on opponents to accept the decision rather than maintain their adversarial stance.

The fee structure had been revised with light vehicles fitted with e-tags to pay 30c/km, down from the 40c/km initially announced. Motorcycles would pay 20c/km, nonarticulated trucks 75c/km and articulated trucks 1.51/km.

A frequent-user cap of R550 a month has been set for light vehicles and motorcycles, while a time-of-day saving of 20% for heavy vehicles will be introduced.

Transport Minister Sibusiso Ndebele would also table legislation to provide Sanral with enforcement powers for tolling.

Business Unity South Africa has welcomed governments efforts in reducing the impact of the tolling system on the economy.

However, the Automobile Association of South Africa (AA) believed that the tolls should still be funded from the fuel levy.

AA head of public affairs Gary Ronald said that the cost to the consumer was going to "hit home hard" when commodity prices, as well as transport costs, increase. He recommended a dedicated road fund be established or ring-fencing the fuel levy funds for transport, road safety and transport infrastructure projects.

The AA called on government to ensure that road users saw the benefits of this tax in the short term.

Trade union United Association of South Africa (Uasa) believed the combination of e-tolling with the increase of the general fuel levy by 20c/l and the Road Accident Fund levy by 8c/l were a cause for concern.

"With e-tolling capped at R550 a month, this could mean an extra R6 600 a year – and this is just for getting to work every day. The fact that taxi’s are exempt, further means that some workers will get away scot-free, while others will be forced to dig deep to make ends meet or to earn their keep," said Uasa spokesperson Andre Venter.

The Democratic Alliance's Gauteng Caucus Leader Jack Bloom said the R5.8-billion in support, while welcome, made the case against the e-toll collection system even stronger, "as it will cost about R1-billion a year to collect a smaller amount. It is also administratively complex and difficult to enforce".

"We also fear that any toll reduction will be temporary, and once the system is running it can easily be raised," Bloom added, noting that his party would continue to oppose the tolls, including legal action to stop its implementation.

The Road Freight Association was also weighing its leag option, with Gavin Kelly indicating that its members will have to make a decision on which route to take.

Cosatu's general-secretary Zwelinzima Vavi said the unions protest action would proceed, adding that Gauteng motorists were "not cash cows that can be held up on behalf of foreigners who want to make money off us by using our public goods".

Sanral, which is responsible for maintaining and expanding South Africa’s 16 170-km national road network, exempted certain qualifying public transport services, such as taxis and buses, from paying the toll fees to lessen the impact of the toll fees on the poor.

Gordhan pointed out that maintenance of regional and provincial roads, such as the Gauteng freeway, was possible through the revenue generated by toll roads, and that the users of the Gauteng toll roads would benefit through lower vehicle operating costs, time savings and improved safety.

Phase 2 of the GFIP was currently being assessed, along with other toll projects such as the N1/N2 Winelands upgrade and the N2 Wild Coast highway.

Sanral was expected to spend R25-billion on new roads and infrastructure and a further R18-billion on maintenance nationally. Targeted projects included the construction of the N4 Nelspruit bypass and the rehabilitation of the N2.

Gordhan added that government would carefully evaluate road infrastructure funding in the future, as well as develop efficient and cost-effective public transport systems.