Issued by: Ministry of Transport
MEDIA STATEMENT BY MR MAC MAHARAJ, MINISTER OF TRANSPORT
21 FEBRUARY 1996
In contrast to previous practice, I am pleased to be able to announce a general increase o 8% in subsidies for bus commuters more than month before this comes into effect on 1 April 1996.
In the past there has always been uncertainty about such increases. This has caused difficulties for the operators as well as the commuters.
During a meeting held on 12 January 1996 between myself, the Department, the Southern African Bus Operators Association and representatives of trade unions and communters, I indicated that the Department would consider a two step approach in the handling of the subsidy increase for the 1996/97 financial year.
The 8% increase effective from 1 April 1996 has been made possible by careful management and adjustments in the budget of the Department of Transport. Therefore, of the funds available, a limited amount will also be used to adjust the current low economic tariff structures of some of the bus operators to ensure the continued rendering of bus services.
I trust that this advance notice of the increase will assist bus companies to plan rationally with respect to their operations and passenger fare increases for the year to some.
This approach will also facilitate changing from the current system of tendered contracts, with interim contracts as a first step. The Department is currently in a process of finalising the framework for the interim contracts with the bus commuter industry. The objective of the Department is to conclude the first of such contracts by the middle of 1996.
This will lead to a tendered contract system based on cost norms which will ensure a more stable and sustainable public transport system. These changes in the bus transport subsidy system are consistant with the strategy being developed for the total public transport system, also involving rail and taxis.
A partnership between the three levels of government, public transport operators, labour and commuters will ensure that we will overcome the short-term difficulties and build an efficient public transport system for our country.
Enquiries: Mr T Maeder Tel 012 290 2370
Dr D Ackerman Tel 012 290 2789
Issued by Elsa, Kruger, Ministerial Liaison Officer Tel 021 45-7260