Johannesburg 29 July 1999
Chairperson, Ladies and Gentleman
Thank you very much for the invitation to speak at your Breakfast Session.
Since taking up office in June I have met with your CEO and President, and several of the issues that were raised at the meeting in Pretoria are receiving attention from my staff.
The focus of my term of office will be to ensure that we continue to implement the Moving South Africa project; that the progress that has been made in implementing the Tendered Contract System in the Bus Industry will continue and the on-time delivery of new contracts will improve as the various Provinces gain experience.
As you know, we are preparing the National Land Transport Transition Bill for tabling later this year before Parliament and I wish to thank SABOA for it's useful inputs into this process.
Central to the Bill is the creation of Transport Authorities within the local sphere government.
The function of the Transport Authorities will for the first time enable transport planning across a functional transport area (irrespective of municipal boundaries) to include infrastructure investment and most importantly proper enforcement.
This will enable better alignment between functions and ultimately enable a rationalised system which is responsive to demand.
The Transport Authorities will enable the Tendered Contract System to be implemented in accordance with the public transport plans, thereby rationalising and integrating public transport models in response to user preferences and real volumes.
Government, through the National Land Transport Transition Bill, will facilitate improvements by efficiently defining and enforcing the "rules of the game".
Operators can improve by responding to customers needs on the basis of commercial decisions in an environment of fair competition and better enforcement.
The next draft of the amended Bill is expected to be tabled shortly. SABOA's comments will be appreciated as always.
It is essential that greater investment by both government and operators is required to improve the performance of the public bus service (for example infrastructure investment that improves speed and safety such as dedicated bus- ways, bus shelters that provide adequate protection from the extremes of weather, information systems so that all passengers and potential passengers know about the service and most importantly new buses using more modern, but affordable technology).
All of this has to be fitted in to the overall constraints of the National Budget.
The Provinces have been instructed to ensure that successful tenderers who state that new buses will be provided, actually provide them within the prescribed time period.
Failure to provide these undertakings is a failure to the community.
My Department is determined that Government achieves its delivery goals.
Consultations with the minibus taxi industry are progressing well.
The Department hopes that in the not to distant future this industry will be able to fully participate in the formal public transport industry.
MSA envisages that future bus tenders give more flexibility to operators to change service patterns in response to customer needs.
The contract specifications need not even stipulate a modal solution; rather, they should focus on performance objectives for operators to be met in a fashion appropriate to market conditions.
My Department is in the process of evaluating alternative ways of designing passenger services and has embarked on a study of output-based performance contracts.
I would like to emphasise the fact that the successful implementation of any change will depend on both government and industry.
We have a joint responsibility to meet the needs of our population within a context of limited resources.
Government has to create the environment in which fair competition between modes can be achieved, and the public and private industry as a whole needs to align with the principles of efficiency and performance.
The system of regulated competition together with the components of re- engineering and restructuring will require the development of careful transitional strategies under a strong management structure.
The policy and strategy necessary for change has been determined for both Government and Industry.
The National Land Transport Transition Bill will create the legislative framework for implementing the strategy in the short and medium term.
My Department is endeavouring to create the environment in which the incentives and punitive measures of the tendering system can signal to the industry an appropriate response as to whether they are meeting the needs of the passengers.
In conclusion I would like to thank SABOA for the constructive role you have played in the restructuring of the bus industry and the overall system of land passenger transport. I appreciate your concerns with plans for the recapitalisation of the taxi industry and my Department will consult you on matters that might impact on the bus industry.
The working relationship we have is testament to the partnership we are building in this country between the private and public sectors to ensure that there is a better life for all our people.
This is also why projects you have to empower previously disadvantaged operators are important, and I would urge you to extend your partnership with them so that they might join the mainstream of our passenger transport system as joint venture partners and not remain junior members forever as sub contractors.
I would like to thank you again for this opportunity to address you.