About
Subscribe

Govt: e-toll discussions not over

Farzana Rasool
By Farzana Rasool, ITWeb IT in Government Editor.
Johannesburg, 25 Sept 2012
Government is committed to seeking ways of reducing the financial burden of social and economic services on consumers, says deputy president Kgalema Motlanthe.
Government is committed to seeking ways of reducing the financial burden of social and economic services on consumers, says deputy president Kgalema Motlanthe.

Government will this week meet with stakeholders for a final round of talks on the Gauteng Freeway Improvement Project (GFIP) and e-tolling.

This is despite the interdict against the implementation of e-tolling being set aside last week by the Constitutional Court.

Deputy president Kgalema Motlanthe is heading up a Cabinet-appointed ministerial team that was engaging stakeholders on the controversial project.

Financial burden

The first of the new set of stakeholder meetings will take place at the Union Buildings today, between government and the Opposition to Urban Tolling Alliance (OUTA).

"Government will use these meetings to respond to the issues that were raised by the stakeholders and to put on the table the way forward," says Motlanthe.

"In the meantime, government wants to assure Gauteng motorists and all those who will be using the province's highways that it is committed to seeking ways of reducing the financial burden of social and economic services to consumers.

"Accordingly, it has listened to the concerns about the costs and impact of e-tolling to consumers and will respond comprehensively next week."

Outrageous levies

The South African National Consumer Union (SANCU) says the current pressures on motorists and road users are becoming intolerable.

It first lists the unabated upward movement of the fuel price to over R10 per litre for unleaded fuel (93 and 95). "Yet the relevant ministries are reluctant to pass on the benefits of the 2007 Windfall Tax to consumers - capital plus up to R1.50 discount per litre eligible for Gauteng and Mpumalanga consumers."

It says the second threat is the introduction of "outrageous" recycling levies on tyres (new, used, reconditioned, imported or local). The cost of delivery of this is up to R150 per set of four tyres.

"Finally, the e-tolling saga has not passed away."

It says the road system should be covered in the first instance by the fuel levy, but could be easily covered in any case by the differential between the South African producer price of liquid fuels, as opposed to imported fuels.

"Gauteng and Mpumalanga consumers, in particular, are advised to continue supporting the efforts of OUTA, and notify their Parliamentary representatives of their difficulties to keep funding more and more extraneous 'road user' costs that have no substance to reality."

Win-win

Finance minister Pravin Gordhan has been quoted in the media as saying government wants a win-win approach for e-tolling.

He added that if government wants to start the e-toll system from tomorrow, it theoretically could, but it first needs to address the issue of how to arrive at an understanding with constituents on how to move forward.

Financial abuse

The North Gauteng High Court in April granted OUTA an interdict against e-tolling until a full judicial review was done on the system.

OUTA says the setting aside of the interdict last week does not impinge on its main case, to be heard in November.

"By setting aside the interdict, the Constitutional Court has effectively sent a message to the courts to refrain from applying temporary interdicts against the implementation of decisions made by government. It does not imply that citizens cannot subject these decisions to a judicial review by the courts, as in the OUTA case, should they believe government's decisions are, for example, irrational, unreasonable, unjustified, unconstitutional, or not in the best interests of its citizens."

The alliance explains that the grounds for its case remain sound and strong. "We believe that the current e-toll process is a case of financial abuse and unreasonable action against both citizens and businesses in SA."

Share