OPENING ADDRESS BY MINISTER OF TRANSPORT, DULLAH OMAR AT THE GAUTENG PROVINCIAL TAXI CONFERENCE

27 JULY 2000

TODAY MARKS A MAJOR MILESTONE IN THE HISTORY OF THE FORMALISATION OF THE MINIBUS TAXI INDUSTRY, NOT ONLY HERE IN GAUTENG, BUT THROUGHOUT THE WHOLE COUNTRY. PREPARATIONS IN OTHER PROVINCES TO DEMOCRATISE THE TAXI INDUSTRY ARE UNDERWAY. IT GIVES ME GREAT PLEASURE THEREFORE TO JOIN TOGETHER WITH YOU TO WITNESS THE LAUNCH OF A DEMOCRATIC, TRANSPARENT GAUTENG PROVINCIAL TAXI COUNCIL CONFERENCE AND ELECTIONS. YOUR INAUGURAL CONFERENCE IS OF PARTICULAR SIGNIFICANCE FOR BOTH THE TAXI INDUSTRY AND GOVERNMENT. THIS IS THE FIRST IMPORTANT STEP IN A LONG JOURNEY FOR CHANGE IN THE MINIBUS TAXI INDUSTRY.

I AM TOLD THAT YOU HAVE INITIATED THIS PROCESS IN YOUR PROVINCE TO ENSURE PROPER REPRESENTATION IN ALL TAXI STRUCTURES. THE DEMOCRATISATION PROCESS HAS AS WELL NECESSITATED THE NEED TO CONDUCT ELECTIONS BASED ON THIS REALITY. YOUR PROCESS STARTED FROM THE GRASSROOTS LEVEL WHERE YOU HAVE FACILITATED ELECTIONS IN PRIMARY TAXI ASSOCIATIONS, TAXI LIAISON COMMITTEES AND METROPOLITAN TAXI COUNCILS WITH FULL PARTICIPATION OF ALL TAXI OPERATORS. YOUR EFFORTS HAVE NOT BEEN IN VAIN. THROUGH DIFFICULTIES YOU HAVE EMERGED WITH GREAT SUCCESSES.

ONE OF MANY DISASTERS THE DEMOCRATIC GOVERNMENT IN 1994 INHERITED WAS THE HIGH LEVELS OF VIOLENCE IN THE TAXI INDUSTRY. THE VIOLENCE HAD ITS ROOTS IN THE DEREGULATION OF THE INDUSTRY IN THE EARLY 1980S BY THE APARTHEID REGIME. THIS WAS FUELED BY LACK OF EFFECTIVE ENFORCEMENT AND THE ABSENCE OF A STRATEGIC APPROACH TO THE GRANTING OF PERMITS. THESE TWO ELEMENTS COMBINED CAUSED OVER-TRADING IN THE TAXI MARKET, AND THE FORMATION OF ASSOCIATIONS AS POWERFUL CARTELS TO CONTROL TAXI ROUTES SUPPORTED BY ARMED BANDITS TO ENFORCE SUCH CONTROL MAINLY OVER TAXI RANKS. THE NEED FOR A SUSTAINABLE SOLUTION TO THE ON-GOING CRISIS WAS UNDERLINED BY THE FACT THAT TAXIS HAD A SHARE OF CLOSE TO 65% OF PUBLIC TRANSPORT USERS. THIS FACT MEANT THAT THE TAXI INDUSTRY WAS THE SINGLE MOST IMPORTANT SECTOR OF TRANSPORT FROM A CUSTOMER POINT OF VIEW.

IN THE ECONOMY, THE TAXI INDUSTRY WAS BEING SEEN AS THE ONLY INDUSTRY WHERE YOU COULD SAY WITH PRIDE, WAS CONTROLLED BY THE DISADVANTAGED MAJORITY. THE PREVIOUS APARTHEID GOVERNMENT DID NOT OFFER ANY FORM OF SUBSIDY TO THIS INDUSTRY. THE INDUSTRY THEREFORE GREW OUT OF NO SUPPORT WHATSOEVER FROM GOVERNMENT. AS THE NEW DEMOCRATIC ORDER WAS BEING INSTALLED, LEVELS OF EXPECTATIONS FROM BOTH OPERATORS AND COMMUTERS ALIKE WERE RAISED. CALLS FOR THE DEMOCRATIC GOVERNMENT TO DO SOMETHING WAS MADE SEVERAL TIMES FROM ALL QUARTERS.

LADIES AND GENTLEMEN, THE TAXI INDUSTRY IN SOUTH AFRICA HAS RECORDED ENORMOUS ACHIEVEMENTS. IT HAS EVEN MORE PROMISE FOR THE FUTURE, BUT IT IS ATTACKED BY NUMEROUS PROBLEMS WHICH SOMETIMES ERUPT IN VIOLENCE. JUST AS WE SUCCEEDED IN DEALING WITH THE POLITICAL VIOLENCE, I BELIEVE THAT THE TAXI INDUSTRY WILL STABILISE AND BECOME A CORNERSTONE OF SUCCESSFUL DEVELOPMENT IN OUR COUNTRY. WE WILL ALL BE PROUD OF THIS INDUSTRY BECAUSE I BELIEVE THAT IT ONE SHINING EXAMPLE OF GENUINE BLACK EMPOWERMENT PROJECTS.

CLEARLY, THE SOUTH AFRICAN INDUSTRY AND COMMERCE IS NOT AWARE OF THE CONTRIBUTION THAT THE TAXI-INDUSTRY MAKES TO THE EFFICIENCY OF THEIR OPERATIONS. THE TAXI INDUSTRY, DESPITE ALL THE BAD PRESS IT SOMETIMES RECEIVES, HAS DONE AS MUCH AS ANY ASPECTS OF THE INDUSTRIAL RELATIONS SYSTEM TO CONTRIBUTE TO EMPLOYEE PRODUCTIVITY. THIS IS BECAUSE IT IS A VERY EFFICIENT MASS TRANSPORTATION SYSTEM, ABLE TO OFFER ITS CUSTOMERS GREATER FLEXIBILITY AND CONVENIENCE THAN WOULD BE POSSIBLE IN ANY OTHER SYSTEM OF MASS TRANSPORTATION.

UP TO NOW IT HAS SURVIVED AND GROWN WITHOUT SUBSIDISATION, AND ALTHOUGH I KNOW JUST WHAT A STRUGGLE FOR SURVIVAL THE INDUSTRY IS, IT HAS REMAINED VIABLE AND IT HAS GROWN IN IMPORTANCE.

THE TAXI INDUSTRY IS ALSO A SYMBOL OF THE POTENTIAL CONTRIBUTION OF THE SMALL BUSINESS SECTOR TO OUR ECONOMY. THOUSANDS OF SMALL OPERATORS AND OWNERS, EACH OF THEM IN A SMALL WAY SOLVING THEIR OPERATING PROBLEMS AND EXPANDING THEIR MARKETS, HAVE PRODUCED A FLOOD OF SERVICE - TODAY A MASSIVE PRIVATE SECTOR INSTITUTION WHICH DEMANDS THE RESPECT AND THE ATTENTION OF GOVERNMENT AND LARGE CORPORATIONS ALIKE.

THE TAXI INDUSTRY IS ALSO A MORE CONVINCING DEMONSTRATION OF BLACK SELF-EMPOWERMENT THAN ANY OTHER SINGLE EXAMPLE. IT HAS NOT NEEDED SPECIAL EMPOWERMENT ASSISTANCE OR SPECIAL LAWS AND REGULATIONS, AND IT HAS NOT IN ANY WAY THREATENED THE LIVELIHOODS OF OTHER CATEGORIES OF OUR POPULATION, BUT IT HAS BEEN A MEANS FOR JOB CREATION AND THE ACCUMULATION OF WEALTH BY BLACKS WHICH WOULD SURPRISE MOST OF US IF IT WERE OFFICIALLY RECORDED.

IN THE SAME BREATH, HOWEVER, ONE HAS TO PAY TRIBUTE TO THE COURAGE WHICH IT TOOK IN THE EARLY YEARS OF THE INDUSTRY, WHEN IT WAS OFFICIALLY OPPOSED AND CRIMINALISED BY THE PRE- 1994 REGIME. IN THE END THE DETERMINATION OF THE OPERATORS WON THROUGH, AND EVEN BEFORE THE LIBERATION OF OUR COUNTRY FROM APARTHEID, THE TAXI INDUSTRY HAD EMERGED WITH PRIDE AS A VITAL SECTOR IN OUR ECONOMY.

I HAVE BEEN INFORMED THAT THIS CONFERENCE WILL PAY A GREAT DEAL OF INTENSIVE TECHNICAL DISCUSSION ABOUT THE FURTHER GROWTH REQUIREMENTS OF THE INDUSTRY, AND IT IS NOT MY ROLE TO DEBATE THE DETAIL OF THE ISSUES WHICH YOU WILL BE DISCUSSING. WHAT I WOULD LIKE TO SAY, HOWEVER, IS THAT THE TAXI INDUSTRY IS NOT ONLY AN AVENUE OF INVESTMENT IN ITSELF, BUT IT IS A SECTOR OF ECONOMIC ACTIVITY WHICH CREATES OPPORTUNITIES FOR INVESTMENT IN RELATED ACTIVITY AND WITHIN ITS LINKAGES WITH THE WIDER ECONOMY.

IT HAS A VITAL ROLE IN LOCAL TOURISM DEVELOPMENT, AND IT HAS AN EQUALLY IMPORTANT POTENTIAL ROLE IN THE TRANSPORTATION OF SMALL BATCHES OF COMMERCIAL GOODS AND PRODUCE. ONCE EXAMPLE WILL SUFFICE - WHEN WE ARE ABLE TO GET TO GRIPS WITH THE CHALLENGES FACING THE DEVELOPMENT OF SMALL SUBSISTENCE AGRICULTURE, THERE WILL BE A CERTAIN TYPE OF TRANSPORTATION OF PRODUCE WHICH WILL NOT NEED DEDICATED VEHICLES BUT WHICH COULD WELL BE SERVED MOST EFFICIENTLY BY THE TAXI NETWORKS.

THE TAXI INDUSTRY HAS ALSO DONE A GREAT DEAL, OFTEN INADVERTENTLY, TO HIGHLIGHT THE NEED FOR A MORE EFFECTIVE FINANCING OF ROAD TRANSPORTATION INFRASTRUCTURE, AND FOR THE EXPANSION OF THAT INFRASTRUCTURE AS THE BASIC MEANS OF OPENING UP THE MARGINAL AREAS OF SOUTH AFRICA FOR DEVELOPMENT.

CHAIRPERSON, ALLOW ME TO EXPRESS THE HOPE AND OPTIMISM THAT THE NEW POLICY INITIATIVES (SUCH AS THE FORMALISATION, LEGALISATION AND RECAPITALISATION PROCESSES) IN REGARD TO NATIONAL AND PROVINCIAL TRANSPORTATION WILL GO SOME WAY TO REDRESS THE NEGLECT OF INFRASTRUCTURE AND ECONOMIC SERVICES IN OUR NATIONAL BUDGETS OVER THE PAST DECADE.

BECAUSE WE ARE FACED WITH SUCH AN ENORMOUS DEMAND FOR EXPENDITURE ON SOCIAL SERVICES, OUR EXPENDITURE ON INFRASTRUCTURE AND ECONOMIC SERVICES TENDED TO STABILITY IN THE INDUSTRY. THESE INVESTMENTS WILL NOT ALWAYS BE OF A CONVENTIONAL TYPE, AND INDEED WE WILL HAVE TO DISPLAY CONSIDERABLE INNOVATION IF WE ARE TO ADDRESS THE TRANSPORTATION NEEDS.

WE NEED A STABLE AND EFFICIENT TAXI INDUSTRY MORE THAN MOST PEOPLE REALISE. WE NEED IT NOT ONLY AS FOR ITS DIRECT CONTRIBUTION TO THE ECONOMY THROUGH THE TRANSPORTATION OF WORKERS AND SHOPPERS, BUT THERE IS A VITAL SOCIAL DIMENSION TO ITS SERVICE AS WELL. BY OFFERING MOBILITY TO SCHOOLCHILDREN IT IS INCREASING THE EFFECTIVENESS OF THE EDUCATIONAL SYSTEM, AND IT IS ALSO ALLEVIATING UNEMPLOYMENT BY OFFERING PEOPLE A GREATER SCOPE IN THE GEOGRAPHIC LOCATIONS OF THEIR EMPLOYMENT AND JOB-SEEKING.

IT IS ALSO BRIDGING THE SOCIAL GAP BETWEEN THE RURAL AND URBAN AREAS, AND IT IS MAKING IT POSSIBLE FOR EVEN THE MOST REMOTE COMMUNITIES TO BROADEN THEIR EXPOSURE TO THE URBAN CENTRES. HENCE THE TAXI INDUSTRY IS IN A SENSE THE HUB OF SOCIOECONOMIC DEVELOPMENT. COMRADE PREMIER, I AM CONVINCED THAT WE OWE IT TO OUR ECONOMY AND SOCIETY TO SEE TO IT THAT THIS HUB OF ACTIVITY IS WELL LUBRICATED WITH ALL THE FACILITATION THAT PUBLIC POLICY-MAKERS CAN OFFER IT. THE PROSPERITY OF THE TAXI INDUSTRY MEANS PROSPERITY FOR ALL OF US, THEREBY PROMOTING A BETTER LIFE FOR ALL OUR PEOPLE.

BUT WE WILL NEED MORE THAN FACILITATION BY THE PUBLIC SECTOR. I HAVE MENTIONED THE NEED FOR INNOVATION IN THE DEVELOPMENT OF TRANSPORTATION AND IN THIS REGARD THE PRIVATE SECTOR HAS AN IMPORTANT ROLE TO PLAY. THE PRIVATE BUSINESS SECTOR HAS TENDED IN THE PAST TO TAKE THE TAXI INDUSTRY VERY MUCH FOR GRANTED, AND HAS HARDLY NOTICED THE VITAL SERVICE WHICH IT PROVIDES TO THE EMPLOYEES OF THE BUSINESS SECTOR.

I WOULD LIKE TO APPEAL TO ORGANISED BUSINESS NOT ONLY IN THIS PROVINCE TO ESTABLISH OR TO STRENGTHEN STRUCTURES WHICH OPERATE IN PARALLEL TO THE PUBLIC SECTOR AND THE TAXI TASK TEAMS IN ORDER THAT OPPORTUNITIES FOR DEVELOPMENT INPUTS FROM THE PRIVATE SECTOR CAN BE EXPLORED AND FACILITATED.

IN CONCLUSION, I WOULD LIKE TO CONGRATULATE THE TEAM THAT STARTED THE PROCESS. I SEE THAT FROM YOUR PROGRAMME YOU WILL BE BREAKING INTO COMMISSIONS. I WOULD LIKE TO WISH YOU FRUITFUL DELIBERATIONS IN YOUR COMMISSIONS. I AM ALSO INFORMED THAT YOU SHALL BE ELECTING YOUR LEADERS MAKE SURE THAT YOU ELECT LEADERS THAT WILL PUT THE INTEREST OF THE INDUSTRY BEFORE THEIR INDIVIDUAL INTERESTS.

WITH THOSE WORDS, IT GIVES ME PLEASURE TO OFFICIALLY OPEN THE GAUTENG TAXI COUNCIL INAUGURAL CONFERENCE