National Land Transport Bill

1. National Land Transport Bill Presentation to Portfolio Committee 29 July 2008

2. Table of contents • National Land Transport Strategy document • Introduction • Overview • Institutional issues • Funding • Transport planning • Contracting for PT services • Regulation • Registration • Rail • Freight • Appeals

3. 1 Strategy document:Introduction • Drafting of the Bill was based on National Land Transport Strategy Document (NLTS) presented on 23 August 2007 • NLTS was based on interviews and policy docs since 2000, e.g Public Transport Strategy & Action Plan approved by Cabinet in 2007, National Rail Plan, 2005 etc. • Basic policy in 1996 White Paper stays the same

4. 2 Strategy document:Overview • More uniform laws and procedures needed across the country • Functions should be consolidated with the same entity where possible to avoid fragmentation, within limits of Constitution • Interprovincial and tourist transport should be regulated nationally • Integrated rapid PT networks (IRPTNs) should be established in larger cities, incorporating all modes, with through-ticketing etc.

5. 2.2 Strategy document:Overview cont. • Dedicated funds should be established in each sphere with new funding sources • Planning authority should do contracting for services and issue operating licences (OLs) • Registration can be dealt with by entities responsible for OLs: Bill does not need to control registration • Will be a separate Rail Act later, e.g. to establish Rail Economic Regulator and deal with infrastructure issues • Freight should not be regulated by the Bill, but there should be other measures: e.g. to attract freight to the rail mode

6. 3 Institutional issues • White Paper, 1996 supports principle of subsidiarity i.e. devolve functions to lowest appropriate sphere • Concerns/impediments in NLTTA: • Lack of sustainable funding • Conflict with local government legislation • Limitation in range of functions assigned to TAs • Problem of unfunded mandates • Problem: transport authorities (TAs) not autonomous from their municipality/ies

7. 3 Institutional issues cont. • 6.1 Underlying problems: • Fragmentation of functions is a problem: • Rail function is national (SARCC does planning) • Bus subsidies, OL Boards & Registrars at provincial level • Municipalities required to do ITPs • The following functions should be performed by the same entity: • Planning – ITP: all PT services • Service delivery: operations and subsidies • Regulation – OLB functions • Monitoring: compliance/operations

8. 3 Institutional issues cont. • Recommendations: • 4 essential elements need to be placed at a single sphere of government: • Planning and co-ordination • Service delivery • Regulation and market entry • Monitoring • All these should be placed at the municipal sphere • Consolidate the following at municipal sphere: • Road based subsidy function • Monitoring of subsidised service contracts • Regulation (operating licence) function

9. 3 Institutional issues cont. • 6.3 Recommendations cont.: • Funding for subsidised service contracts should be transferred directly to metropolitan municipalities • Metros should have more responsibility for service level planning for commuter rail – establish a statutory committee • Treat “aspirant metros” the same as metros • Transport authorities: where there is more than one municipality in a functional area, a TA should be established • Where a TA is established, it should have the full range of transport functions • Resolve conflict with Municipal Systems Act and MFMA • Provide dedicated funding sources

10. 4. Funding • NLTTA provides no dedicated funding sources (Min. or MEC may give funds) • Bus subsidies “frozen”: i.e. only increased for inflation • Bus subsidies voted on DoT budget and distributed by provinces: system largely not integrated with ITPs – leads to lack of accountability • Cities and TAs responsible for ITPs, but have no control over rail services and limited control over bus and taxi operations – leads to lack of accountablility • Deficit funding by central government discourages the search for more efficient supply mechanisms

11. 4. Funding cont. • Recommendations: • Empower TAs and certain municipalities to raise user charges • Establish funds in all three spheres of govt. • Transform subsidies into a metro-managed integrated system • Substantially increase subsidies to promote PT – educate public about need for PT • Consolidate functions in the local sphere • Clarify role of TAs re capital expenditure

12. 5. Transport planning • Planning requirements too onerous: NLTTA amended by Act 26 of 2000 • Essential planning approach should remain the same • New Minimum ITP Requirements published on 30 November 2007: • NLTSF remains, and will incorporate National Transport Master Plan, National Rail Plan, Freight Logistics Strategy etc. • PLTFs remain • Comprehensive ITP for metros and larger cities • District ITP for district municipalities • Local ITP for local municipalities – much simpler plan

13. 6. Contracting for PT services • Many interim contracts still exist on old multi-journey ticket subsidy system – contrary to NLTTA • Old subsidy system not integrated with ITPs – not acceptable to reduce or remove routes • Subsidy amount generally only increased for inflation • Model tender & contract docs too restrictive: only allow for net-based contracts • Negotiated contracts are supposed to be an exception, but many implemented • NLTTA requires TAs to take over the subsidy function – eThekwini TA has not yet done so • System managed by provinces, who are not the planning authorities

14. 6. Contracting forPT services cont. • Recommendations: • Subsidy money should be transferred to authorities responsible for land use & transport planning • Roles of 3 spheres should be established more clearly • Should be a one-off phasing in process to convert existing contracts to negotiated contracts on a gross basis in urban areas to accommodate IRPTNs • Bill should promote more flexibility in contracting • Review definition of contracting authority to include aspirant metros and/or designated municipalities • No restrictions if authority uses own funds • Deadlines for interim contracts to be converted • Integrate municipal bus services • Expand maximum period of OLs in the case of contracts • Integrate bus and minibus services into IRPTNs

15. 7. Regulation • OL system is not plan managed: PA control over OLBs is weak • OLBs not functioning properly: backlogs with conversion of permits etc. • The regulatory system should reside with the same body that does planning • Need to streamline regulatory process • Uniform, national system and standards needed • Concurrencies by provinces for interprovincial services are a problem • Different system needed for tourist transport: initiative of DEAT, DoT and tourist industry

16. 7. Regulation cont. • Establish national regulatory entity, responsible for: • Interprovincial services • Tourist transport services • Oversight, setting standards etc. • Dissolve 9 OLBs and set up a new regulatory entity in each province that is primarily administrative • OL applications must first go to planning authorities for a decision based on plans (ITPs) • Where municipalities do not have capacity, provinces should prepare ITPs on their behalf • Where a PA issues a contract, the regulatory entity must issue an OL accordingly • OLAS must be on line to eNATIS and to PAs etc.

17. 7. Regulation cont. • Recommendations cont.: • Regulatory functions must be fully assigned to a regulatory entity in the municipal sphere in selected municipalities designated by the Minister, and to TAs. These municipalities must demonstrate willingness, capacity and readiness • A municipal regulatory entity should be able to give notice that it will not accept unsolicited applications if its ITP does not show a need • Degree of regulation will differ according to type of service • OLs should be linked to vehicles and routes (with certain exceptions in the case of routes)

18. 7. Regulation cont. • Develop a system for OLs in electronic format • PT facilities should be publicly owned & managed • PAs need more powers over fare systems • OLs for routes that terminate within a specified distance of an int. border should be dealt with by the Cross-Border Agency • Passenger liability insurance issues need to be resolved • Taxi Recap should not be explicit in the Bill

19. 8. Registration • Registration of associations and operators was a transitional measure for minibus taxis • Registration of other modes could be provided in provincial laws: process not started yet • Registrars’ functions should now be covered by NPTR, PREs and DPAs/APAs • RAS and OLAS systems should be combined • Bill should not require compulsory registration

20. 9. Rail • Changes in the rail sector since the 1996 White Paper indicate that a change in the regulatory regime is required • National Rail Plan: is a priority corridor strategy • Rail planning done in national sphere and not always integrated with ITPs • Recommendations: • A new Rail Act should deal with the proposed Rail Economic Regulator, and infrastructure issues • NLTB should provide a formalised structure for consultation between rail & road PAs • Need tighter provisions to integrate the rail mode

21. 10. Freight • Freight was deregulated in 1988 • Establish principle to move freight by appropriate mode • Include basic, strategic freight network in ITPs • Include route networks for dangerous goods and abnormal loads • Disallow freight movement in some areas, e.g. environmentally sensitive ones

22. 11. Appeals • National Transport Appeal Tribunal (TAT) should be retained for all OL appeals • Provincial appeal bodies should no longer be provided for