This 2018 occasion of the Transport budget-vote takes place against the backdrop of frequent leadership reshuffles. In Transport, we have been marvelled by the 9th combination between Minister and Director-General, which on average, hardly exceeded 12 months in the last 9 years.
These severe interruptions of management stability have significantly impacted on the entities; shifting over from financial steadiness and operational credibility to an increasing condition of risk to the
national fiscus.
The following comparisons in Public Transport could bear proof to this: in 2009, busses transported about 1.2 million people to work and today just over 1.4 million. In comparison, trains carried 2.7 million people in 2008 while trains today transport only 1.2 million people a day. In fact, PRASA lost nearly 60% of their clients over 20 years, mostly in the last five years. This, despite increasing population and millions being added to the work force.
The DA therefore recognises the huge role which the mini-bus taxi industry has played in filling this obvious public transport gap. In fact, the mini-bus taxi industry can be regarded as one of the most underrated heroes in the country’s economy. Being mindful of the importance which mobility can play
as an economic enabler and as catalyst towards overcoming the inequalities brought about by apartheid spatial planning, the DA would not have decreased the Public Transport allocation as the ANC government currently does.
In terms of trains, the focus would be on three simple aspects and ensure commuters get safe, on time and clean facilities. The growing belief amongst SOEs that they are not accountable to the state and that the Public Finance Management Act (PFMA) is an optional requirement is something which the
DA will not tolerate.
In addition, to the position which we hold of increasing Public Transport instead of decreasing it as the ANC suggests, the DA will also increase the Road Infrastructure Budget and not decrease this since delayed maintenance has a detrimental effect, severely adding to backlog management challenges.
Some research claims that as much as 60% of South Africa’s 535 000km road network have potholes, and let me remind everyone that deferred infrastructure-maintenance makes fixing things later more expensive. Moreover, deferred plans in fact, is a sincere debt-burden on future generations.
Let it be known, that the Western Cape is the only province where 100% of vehicle licence fees are reinvested into roads. The ANC-proposed budget cuts are therefore most worrying, and by extending this into subsequent years, a mindless exposé of pure disregard for consequence.
Acknowledging the current fiscal constraints, the DA will resort to the following measures to streamline some of the Transport Budget features:
- Stop paying bonuses and ridiculous salaries to top management which are not substantiated by performance and value add to citizens. While many entities own property, the DA will make sure that these are used optimally and to the benefit of citizens and service delivery;
- Ensure huge savings are achieved by amalgamating all regulatory entities as one organ directly within the Department of Transport. Currently, many safety requirements are compromised due to the user-regulator arrangement – which causes a bizarre relationship; and
- Immediately amalgamate PRASA & Transnet to get rid of the current ridiculous cross-invoicing practise of over R1 billion between the two entities while all rail infrastructure belongs to the same state.
While the additional 30c increase in the Fuel Levy announced by the Minister of Finance during this year’s budget speech will provide the Road Accident Fund (RAF) with an estimated additional R7 billion in revenue for the year, vehicle drivers cannot constantly pay the price to solve issues of bad
management. Employee costs at RAF doubled in 4 years amidst the fact that claims are processed by subcontractors like Medscheme and Forbes.
In general, it is important to realise that each crisis adds to new complexities which could have been avoided if it wasn’t for outdated solutions and silo-like thinking.
Lastly, there should be no doubt that current Transport Governance Management in South Africa can be improved. Necessary change which only the DA can bring and implement, is needed to improve everyday life and provide opportunities.