PRESENTATION TO PORTFOLIO COMMITTEE ON TRANSPORT 18 SEPTEMBER 2002

1. PRESENTATION TO PORTFOLIO COMMITTEE ON TRANSPORT 18 SEPTEMBER 2002

2. South African Bus Operators Association (SABOA) • Moratorium on issuing of tenders • Funding shortfall • Disputes on the HOA

3. SABOA (2) • Funding shortfall • Current year • Treasury Committee • Additional funding

4. 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

5. 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

6. SOUTH AFRICAN COMMUTERS ORGANISATION(SACO) • Lack of public participation • NLTTA prescriptive on public participation • Most processed based on public participation

7. 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

8. 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

9. 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

10. SANTACO (3) • Uncertainty regarding the future role of taxi industry All services to be provided ito: • Subsidised services contracts • Commercial services contracts • Operating licences

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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)

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. ETHEKWINI MUNICIPALITY (4) • Lack of adequate transport law enforcement • Agreed, to consider amendments to AARTO and RTMC to include transport law enforcement

27. Thank you