E-tolls: Operational costs exceed revenue by R100 million
Alf Lees, DA Member of the NCOP for Kwazulu Natal
25 April 2012
A reply to a Democratic Alliance (DA) parliamentary question reveals that next year the projected annual toll revenue on the Gauteng toll route will be R103.7 million less than the cost of toll operation and collection. This shows how much it will cost just to administer the e-toll system – a cost that will be passed on to cash-strapped consumers.
The projected revenue and collection costs on the Gauteng toll route is as follows:
The projected annual toll revenue:
- 2013 financial year – R1.02 billion
- 2014 financial year – R2 .49 billion
The projected toll operations (collection) costs:
- 2013 financial year – R1.12 billion
- 2014 financial year – R1.42 billion
The figures released by the Minister yesterday demonstrate that the implementation of the Gauteng tolls was ill conceived and poorly planned. The high cost of administering the tolls explains why the cost of travelling on the toll roads is so outrageously high.
The Government has created an unnecessary cost burden that all South Africans will pay the price for. On these grounds alone, the toll roads should never have been given the go ahead by the Gauteng government.
Treasury and the Department of Transport argue that tolling is necessary to fund this type of road infrastructure. And yet they do not seem to consider just how much operating the e-tolls actually costs.
In the Western Cape, all plans for further toll roads have been shelved and deemed unnecessary and too costly.
We will continue to fight for the rights of all South Africans who are rightly angry at the way Government has imposed e-tolling on them.