23 may 2002
The Minister of Transport, Dullah Omar, welcomes the announcement by Top Six that it has secured a 1.6 billion rand facility with a financial institution to enter into a deal with Toyota South Africa.
When the idea was first mooted and he was approached for his view, Minister Omar supported the Top Six proposal and support by financial institutions.
This in no way interferes with government’s recapitalisation programme. The law is very clear. By 2004, only vehicles that comply with the basic safety specifications laid down by law will be licensed. In other words, no vehicle will be licensed after the date if it does not comply with those basic specifications. The law also provides that after 2006 no vehicle may operate on South Africa’s roads as a public passenger transport vehicle, unless it complies with the basic safety specifications laid down by law.
Persons who acquire the current vehicles from Toyota or any other firm, are aware of this requirement and therefore are aware of the fact that they will have to take steps to comply with the law within the legally laid down time frame.
The acquisition by taxi operators of new vehicles even before the recapitalisation project rolls out the vehicles, which do comply with the basic safety specifications, is certainly an advance on the current fleet, which is very old. Therefore, if operators are able to acquire new vehicles now, Minister Omar sees it as an improvement on the current situation. It will promote better safety standards and is therefore welcome even though they do not meet the criteria, which will become compulsory by 2004 and 2006.
At the same time, Minister Omar points out that the tender process for the recapitalisation programme is nearly complete. The only outstanding item is the Electronic Management System, in respect of which there are negotiations proceeding between government and the South African National Taxi Council (SANTACO). Once there is agreement on this aspect, the tender process will be finalised and the winning bids announced. It is expected that the first vehicles will run off the assembly lines before the end of the year. Minister Omar was the guest speaker at the launch of the Top Six Corporate Entity and wished Top Six success in its venture.
Last year before proceeding with the project, Toyota also informed Minister Omar of its intention and Minister Omar indicated that he had no objection. The taxi recapitalisation process is a once off process and it is important that the private sector satisfies the needs of taxi operators and commuters.
ISSUED BY:
Mike Mabasa
HEAD: Media Liaison and Corporate Communication
May 23, 2002