E-tolling is picked apart

Business Unity SA (Busa) emphasised procedural concerns in relation to the stakeholder consultation process on e-tolling, which began yesterday.

It made a preliminary submission to the e-toll steering committee yesterday. The committee was formed to run consultations on the tariff structure of the project, which was initially set at 66c/km for standard cars.

E-tolling is an open road, multi-lane toll infrastructure that allows for tolls to be charged without drivers having to stop. There are no physical booths.

Busa says the procedural concerns include a 13 February request to transport minister Sibusiso Ndebele for a meeting, which has not yet been finalised.

It also says it has only received vague responses from the department in relation to requests for clarity.

“At a minimum, the mooted inclusion of business in the composition of the steering committee did not transpire. The 'constitution' (or terms of reference) of the steering committee, which was to be finalised by 20 March, has also not yet been released.”

Consultations on e-tolling began yesterday. The steering committee met with stakeholders from the business fraternity. Some of the stakeholders at the consultations were Busa, Road Freight Association, Automobile Association, Retail Motor Industry, Johannesburg Chamber of Commerce, and Afriforum.

In the meeting with the business fraternity, some of the concerns raised were about how the tariffs were arrived at; why they seem expensive; why the freeway improvement project should be tolled at all; the need for proper planning and alternative means of transport; and seeking and finding alternative sources of funding, according to the transport department.

“The steering committee emphasised that the submissions made by the business sector and other stakeholders as the process unfolded were very valuable and would be treated with the critical consideration they deserve. These submissions will influence the outcome of the consultation process.”

Busa also outlined select issues that the steering committee should prioritise.

It says the tariffs need to be realistic and affordable, both for the private sector, and ordinary consumers, some of whom already spend up to 60% of their monthly wages on transport costs.

“All economic assessments must be updated in light of the impact of the recent global recession on SA's economy.”

Busa also says there must be a clear idea of the implications of the tariff structuring. “Freight trucks are, for instance, unable to adjust schedules to make use of off-peak discounts, and may, therefore, have to foot the bill for discounts given to other users, which will inevitably be passed on to the consumer, including on some basic foodstuffs.”

The tariff structure that will be decided upon is greatly influenced by what arrangements can be made in terms of the R22 billion Gauteng Freeway Improvement Project loan that needs to be repaid.

“Busa believes that the existing eight-year arrangement may be unnecessarily ambitious, especially considering the lifespan of the infrastructure financed, which will exceed two decades. We believe this situation is analogous to the controversy over the proposed 2010 Eskom tariff increases, which was significantly reduced on the basis of a new financing 'mix'.”

The organisation says the utilisation of funds raised through the fuel levy should be completely reconsidered, including the ring-fencing of funds for roads construction and maintenance.

“In particular, since the e-toll systems are mooted to be replicated in the Cape Town and eThekwini Municipalities, Busa believes that the better leveraging of the fuel levy may make for a much more predictable, simple, measurable and equitable user pays mechanism.”