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E-toll cuts not enough

Farzana Rasool
By Farzana Rasool, ITWeb IT in Government Editor.
Johannesburg, 01 Jul 2011

The recommended reduced tariffs for the controversial e-tolling project are a step in the right direction but not nearly enough of a solution to the e-tolling problem, say stakeholders.

Transport minister Sibusiso Ndebele established a steering committee to consider the tariffs after public outrage due to the high initial fees of 66c/km for light motor vehicles and R3.95 for heavy vehicles.

The committee yesterday discussed its findings and recommendations with stakeholders in a final meeting before suggestions can be presented to the minister.

The committee suggested reduced tariff rates of 58c/km for light vehicles and R2.95 for heavy motor vehicles without e-tags.

Stakeholders ignored

Stakeholders at the meeting were divided in their reaction to the reduced prices; however, most felt it is a positive progression but still more needs to be done.

Business Unity SA (Busa) says the reduction is a step in the right direction but stakeholders' suggestions have been largely ignored.

“Busa...remains deeply concerned at the socio-economic impact of the intended toll system on the regional and national economy. Busa does not dispute that users need to pay for roads maintained and built, or the use of tolls, but rather the application of the latter in the urban context.”

It adds that the option of a ring-fenced fuel-levy is favoured by the vast majority of stakeholders as the more predictable, simpler, cheaper, more efficient and more equitable method.

“High compliance risks coupled with high administrative costs are two particular drawbacks that could put the success of the e-tolling system on the line.”

However, a treasury representative said fuel levies for provinces are not equitable since it would be a costly exercise to collect the levy from fuel stations in the province.

Treasury feels a fuel levy is also not equitable because people not using highways will pay for it.

Government contradiction

Busa says urban tolling will make the business environment more costly and complex, reducing competitiveness and job creation potential.

“As such, we see the intended imposition of urban tolls across the country, rather than the re-institution of a ring-fenced fuel levy, as lacking coherence with programmes such as the National Growth Plan, and inconsistent with national job creation goals.”

Other stakeholders agreed, saying unemployment will worsen with e-tolling since citizens will not be able to get to work, or move around to look for jobs.

Anton Alberts, spokesperson for the Freedom Front Plus, says that in this way e-tolling also goes against government's Industrial Policy Action Plan since it creates a constriction in getting to the heart of industry, which is in Gauteng.

“While lanes are being made wider, e-tolling makes it less possible for people to use the lanes at the end of the day.”

Busa says it will investigate options to bring the matters of the e-toll tariff determination process and the suitability of urban tolling versus the fuel-levy to Nedlac, and may possibly ask Parliament's transport portfolio committee to have public hearings on these issues.

Exemptions please

Some stakeholders pointed out that there is still a public transport gap, which should essentially be filled before e-tolling can be considered a viable option.

The South African Communist Party (SACP) in Gauteng said the state has a constitutional obligation to build and maintain roads, and no acceptable reason was given as to why citizens are being overburdened with this now.

“It seems like Treasury, whenever it needs money, runs to the taxpayer because taxpayers have to pay or end up in jail and that's deplorable,” said Alberts.

He suggested there be a socio-economic exception made to people below a certain Living Standards Measure income, or they must be able to register for reduced rates.

AfriForum also questioned why salary-earning citizens are being made into a cash cow. It explains that reductions on public transport tariffs and heavy vehicle tariffs are far greater than those for light motor vehicles and motorcycles.

“Why the discrimination against salary earners who are already overtaxed?”

The SACP suggested that public transport should be exempt from the e-tolling system completely.

Confidence negated

“We still don't know if 40c/km [for light vehicles with e-tags] is a fair price or not because we haven't been provided with the source documents,” said Democratic Alliance spokesperson on transport in Gauteng Neil Campbell.

Busa agreed, saying the “complexity of the tariff structures, a lack of information on possible changes implied for off-peak and frequent user discounts, and the general opacity of the steering committee's report makes it impossible to comment on whether the proposed downward adjustments go far enough at this stage.”

It explained that the embargo on stakeholder access to many of the input studies pr'ecised in the report has yet to be lifted.

The organisation further says stakeholders outside government were not brought onto the steering committee to assist in drafting the recommendations.

“Finalised recommendations were announced in a press conference prior to [yesterday's] engagement, confirming that none of the stakeholder inputs would be considered for inclusion, a step which negated confidence in government stakeholder engagement processes.”

Enough?

The steering committee's recommended tariffs for vehicles with e-tags include a decrease from 30c/km to 24c/km for motorcycles (class A1) and 49.5c/km to 40c/km for light vehicles (class A2).

For medium vehicles (class B), the proposed toll tariff fee is down to R1/km, from R1.49/km, for large vehicles (Class C) from R2.97/km to R2/km, taxis will be 11c/km, from 16.5c/km, while commuter busses (Class B), will come down to 36.3c/km, from 50c/km.

The e-tolling project is an open road, multilane toll infrastructure that allows tolls to be charged without drivers having to stop. There are no physical booths.

The DOT previously said the minister will make a decision on the tariffs by the end of July.

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