23 June 1999
Following numerous inaccurate and misleading reports in the media this week on the recapitalisation of the minibus taxi industry, the Department of Transport has released a statement to clarify the process:
The Departments of Transport, Trade and Industry, Minerals and Energy and Finance are involved in preparing a recapitalisation strategy for the minibus taxi industry.
An international tender for a purpose-built vehicle will be advertised at the end of July this year, which would enable local and international motor manufacturers to bid.
Government is committed to ensuring that such vehicles are affordable, and that new jobs are created in the motor industry through the recapitalisation process.
A number of detailed issues are still to be ironed out (such as the size of the vehicles and what type of fuel they will use) before government is able to make a public pronouncement on the components of the strategy.
These matters are being addressed as a matter of urgency, and it is expected that they should be resolved before the end of July.
It is important to note that the decision on type of vehicle and ultimately the manufacturer of such a vehicle will be determined through an interdepartmental evaluation of the international competitive tendering process.
As such, the process will be transparent and will include the participation of the taxi industry through SATACO (the South African Taxi Council). Government, in consultation with SATACO is presently determining the specifications for such a tender.
The role of government in this strategy is to facilitate the recapitalisation process by enabling operators access to affordable, purpose-built public transport vehicles within the scope of existing policies of government.
There are presently approximately 120,000 minibus taxi vehicles on our roads. These vehicles are largely in excess of nine years old. The impact of this situation on the country‘s public transport system is significant, since 65% of all commuter trips nationally, are undertaken by means of minibus taxi.
Furthermore, the age and condition of the fleet is a serious safety hazard, which imposes significant costs on the country.
For operators, the condition of the fleet imposes serious inefficiencies in the operating returns for the minibus taxi industry as a result of rising maintenance costs and downtime. From a public transport strategy point of view, the negative impact on users is therefore a critical issue which both government and the minibus taxi industry are committed to addressing.
Government has begun official consultation with the taxi industry through SATACO, in order that the necessary partnership between government and the industry is established for the recapitalisation process.
The recapitalisation process also offers an important opportunity to implement the formalisation and regulation processes agreed through the National Taxi Task Team. It is envisaged that access to the recapitalisation package will be based on compliance with registration and permissions requirements already agreed. The recapitalisation process therefore reinforces the democratisation of the industry through SATACO.
Didi Moyle
PA and Media Liaison Officer to the Minister of Transport
Pretoria: (012) 309 3131 (phone) or (012) 328 3194 (fax)
Cape Town: (021) 457260 (phone) or (021) 461 6845 (fax)
email: moyle@mweb.co.za
or moyled@ndot.pwv.gov.za
(Pretoria only)
cell: 082 808 5108