PRESENTATION TO PORTFOLIO COMMITTEE

ON TRANSPORT

18 SEPTEMBER 2002

South African Bus Operators Association (SABOA)

• Moratorium on issuing of tenders

– Funding shortfall

– Disputes on the HOA

SABOA (2)

• Funding shortfall

– Current year

• Treasury Committee

• Additional funding

SABOA (3)

• Funding shortfall– Long term

• Joint Committee (NDOT, Provinces & National Treasury)

• Mandate:– Purpose of regulated competition

– Escalation

– Contract duration and size

– Designs of tender contracts

– Transfer of risk

– Targetting of subsidies

• Date for reporting: October 2002

SABOA (4)

• HEADS OF AGREEMENT

– Disputes between Government, organised labour and industry

– Meetings arranged for 19 and 20 September 2002 to address the way forward

SOUTH AFRICAN COMMUTERS ORGANISATION

(SACO)

• Lack of public participation

– NLTTA prescriptive on public participation

– Most processed based on public participation

SACO (2)

• Concern regarding capacity and funding in the local sphere of Government

– Raised by most role players

– Addressing it through special allocations and capacity building

SOUTH AFRICAN NATIONAL TAXI COUNCIL

(SANTACO)

• No recognition of SANTACO

– To be recognised as a statutory body

– Problematic, have to include all stakeholder groupings in Act

SANTACO (2)

• Specific BEE model required for taxi industry

– To establish one land transport system

– Tender and negotiating contract processes

– Amend tender document, user friendly, capacity building

SANTACO (3)

• Uncertainty regarding the future role of taxi industry

All services to be provided ito:

• Subsidised services contracts

• Commercial services contracts

• Operating licences

SANTACO (4)

• Unhappiness re the withdrawal of permits

– Need to manage over capacity– Ensure utilisation of the right mode– Also applicable on bus industry– 1st step to try and accommodate operator

somewhere else in the transport sector– 2nd step to pay compensation

SANTACO (5)

• Lack of subsidies

– Need to develop one land transport system– Subsidies to benefit commuter and not operator– To develop a tender system which will

recognise all vehicle type – To maximise the system economics

SANTACO (6)

• Representation on non-councilors on TA’s

– Currently only elected councilors• Accountability – PFMA

• Adjudication of tenders

– Also to establish a Transport Executive on which other organisations can be represented

SANTACO (7)

• Role of Registrars to be clarified

– Similar concerns highlighted in Palmer report

– Workshop arranged for early October to clarify the roles of Registrars in terms of the NLTTA

SANTACO (8)

• Limited progress by TETA

– NDOT had discussions with TETA in this regard

– SANTACO represented on TETA

– NDOT to facilitate a meeting between the parties in order to expedite delivery

SANTACO (9)

• Lack of progress with Recap

– Re-assessment of initial information - finalised by NDOT/DTI

– Report currently being considered by the 2 Ministers

– Busy with development of roll-out plan in consultation with SANTACO

SANTACO (10)

• Other issues raised – (all these issues responded on during the

discussion of the Palmer Report)

– Capacity in government– Lack of funding – Complexity of NLTTA– Lack of co-ordination and integration

SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION

(SALGA)

• NLTTA undermines local government legislation– Part 7 of NLTTA based on provision in Local

Government Structures Act– Sectoral framework and plans– NLTTA set out the manner of sector plans

(transport)

SALGA (2)

• Public transport is an assigned function and funds should be provided and funding should be provided

– No function has been assigned or devolved

– Should bus and rail functions be devolved, the budgets will be allocated to those authorities

SALGA (3)

• Provincial and National funds to be allocated to local authorities

– Special allocation for NLTTA

– 2001/02: R1m per province

– 2002/03: R2m per province

– 2002/03: R19m still to be allocated

Funds to be allocated mainly for local planning

SALGA (4)

• Definition of Municipal Public Transport

– Schedule 4B of Constitution: National and Provincial legislative authority – municipalities have executive authority

– Municipal public transport not defined in Constitution (ownership / area of operation)

• Issue need to be addressed in amending NLTTA

SALGA (5)

• Lack of capacity in local sphere

– Specifically with regard to planning

– NDOT in process of issuing tender to do capacity building in transport planning

ETHEKWINI MUNICIPALITY (1)

• Unfunded mandates

– Legal opinion• Public power execute by an organ of state (founding agreement,

councilors)• Compulsory functions listed in NLTT relates to functions of

local government listed in Constitution = not additional functions• Not unfunded mandates

– International practice – co-funded by other spheres - to be explored further

ETHEKWINI MUNICIPALITY (2)

• Lack of financial framework for TA’s

– Agreed, need a financial framework for sustainability

– Removed from draft Bill by Treasury

To be included in the comprehensive funding strategy current being developed by NDOT

ETHEKWINI MUNICIPALITY (3)

• Planning frequency a concern

– Agreed, frequency might be too high

Planning cycle to be revisited – recommendations to be taken to the MINCOM structure

ETHEKWINI MUNICIPALITY (4)

• Lack of adequate transport law enforcement

– Agreed, to consider amendments to AARTO and RTMC to include transport law enforcement

Thank you