National treasury has filed papers to intervene in the application to interdict the e-toll system in Gauteng.
The Opposition to Urban Tolling Alliance (OUTA) lodged an application to the North Gauteng High Court to get e-tolling interdicted. This was done in conjunction with the Southern African Vehicle Renting and Leasing Association; the Quadpara Association of SA; and the South African National Consumer Union.
Treasury today said minister of finance Pravin Gordhan has instructed it to seek leave to join the case in view of the significance of this matter for the state's financing of road infrastructure, and the integrity and sustainability of the public finances. “Treasury's responsibilities in this regard derive from the Constitution and the Public Finance Management Act.”
Government integrity
It added that the government decided in 2007, in terms of provisions of the Sanral Act and after “extensive planning and consultation”, to finance the construction and maintenance of an improved Gauteng freeway through an electronic tolling system, which is due to become operational on 30 April.
After considering public representations during 2011 regarding the level of tolls proposed, Cabinet agreed that a contribution of R5.75 billion should be made from the fiscus to the project.
“The benefits to road users of improved safety, lower travel time and lower operating costs substantially exceed the proposed toll charges. Based on the current toll proposals, which exempt taxi operators and other public transport services, higher income users will account for over 95% of toll revenue.”
Treasury added that there would be serious negative implications for future financing of roads and investment in public transport, were Sanral to be interdicted from implementing the toll collection system.
“Of concern also is the implication for Sanral's capacity to repay its debt, which is partially guaranteed by government. The integrity and sustainability of government's continued access to capital markets is a vital and essential determinant of SA's capacity to finance the infrastructure required for economic growth, development and rising living standards.”
Treasury will argue that the interdict should be denied and the implementation of toll collection should be permitted to proceed, as has been decided by Cabinet.
Inefficient system
OUTA's responding affidavit to Sanral's answering affidavits has been lodged with the courts.
It says some of the concerns with the e-toll system include outstanding amendments to the terms and conditions, finalising processes and conditions for exempted users, and enforcement matters. “We suggest that the public holds back on tagging until an outcome of the court case is heard.”
“It is a case we have prepared well for and we are hopeful of a positive outcome,” says OUTA chairperson Wayne Duvenage. “This is not a matter of a few unhappy people who are opposed to e-tolling. This is a matter of the vast majority of citizens from all segments of the population who are opposed to what can only be described as an unjust, unnecessary and costly taxation which has been thrust upon them.”
OUTA says it is not disputing the need to upgrade Gauteng freeways nor is it rejecting the notion that these upgrades must be paid for. “We simply cannot accept to do so in a manner that is unacceptably onerous to the citizens.”
It explains that e-tolling at current rates with expected escalations will generate in excess of R102 billion over the next 20 years for an infrastructure that costs only R32 billion, including interest, over the same period. This means that R70 billion will have been overpaid by the public, “an amount that will be wasted on an elaborate and inefficient administration and collection scheme in which foreign and local companies along with Sanral will be enriched”.
The case is being heard in the North Gauteng High Court tomorrow.
Friendly application
The Road Freight Association (RFA) last week lodged papers to join the legal proceedings brought by OUTA against the e-tolls as Amicus Curiae (Friend of the Court).
This is mainly as a result of the tariffs published in the Government Gazette on 13 April and the extended powers being granted to Sanral peace officers, says the association.
If granted by the court, the RFA will make submissions on the law enforcement powers granted to Sanral as a private agency; the punitive tariffs that were published in the gazette; freight operators being charged a disproportionate tariff when compared with other road users; and secondary routes not being an alternative for large trucks and heavy road freight vehicles. “Freight vehicles are thus being forced to use the toll roads and pay the excessive tolls.”
Uncollectible tolls
Legal representatives of the Congress of South African Trade Unions (Cosatu) have studied the court papers in the case brought by OUTA against Sanral and e-tolling.
The federation says it will not intervene at this stage of the proceedings, but has requested that its lawyers maintain a watching brief. “They will be present in court when the hearing begins on Tuesday. If there is a need to intervene at a later stage we will do so.”
Cosatu is engaging in a national campaign against e-tolling and mass action will take place on 30 April.
Details of the protest activities in Gauteng include a night vigil at the Tshwane Department of Roads and Transport (DOT) on 25 April, a picket at the Sanral offices on 25 April from 12h00-14h00, and pickets at the Tshwane DOT on 26 April from 15h00.
“Cosatu strongly believes that the pressure of the masses is crucial to forcing government to back down on this blatant extortion. Our aim is to make the tolls uncollectible and force the government and Sanral to find more equitable ways to pay for road improvements.”
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