Budget Vote 37: Department of Transport

1. S’fiso NGESI 01July 2014 Budget Vote 37: Department of Transport

2. Presentation Outline • Mandate of the DoT • Overview of the 2013/14 Financial Year • Policy Priorities for 2014/15 • Budget Analysis • Key Issues for Consideration by Parliament

3. Mandate of the DoT • Provision of safe, reliable, effective, efficient & fully integrated • operations that best meet the needs of passenger & freight users. • In addition, it is mandated with ensuring safety & security across all • modes of transport. • In an endeavour to discharge its mandate effectively & efficiently, • the Dept has organised itself into 7 programmes: • Administration; • Integrated Transport Planning; • Rail Transport; • Road Transport; • Civil Aviation;

4. Mandate of the DoT (continues) • Maritime Transport; & • Public Transport • It has been contended that the Dept’s structure bodes well for the creation of jobs, the development of the country’s urban & rural communities, as well as the improvement of logistics.

5. Overview of the 2013/14 Financial Year • The Dept had spent R39bn or 99.2% of the total available budget by the end of the 4th Quarter • The Dept was behind on total spending by R317 million or 0.8%. • This was mainly due to under-spending in Civil Aviation & Public Transport Programmes. • Pertaining to the former, under-expenditure was due to the Mthatha Airport refurbishment as the Dept spent less than anticipated on the project owing to “limited time”.

6. Overview of the 2013/14 FinancialYear (continues) • Regarding the Public Transport Programme, the under-spending was attributed to the R400 million being paid to the City of Jhb, instead of an amount of R503.7 million, amounting to an under-spending of R103.7 million. • In addition, an amount to the tune of R35.4 million of the taxi scrapping allowance was not transferred thanks to a lower number of taxis being scrapped.

7. Policy Priorities for 2014/15 • In terms of the outcomes-based performance management • framework adopted by Govt, the Dept contributes mainly to the • development of an efficient, competitive & responsive economic infrastructure network (outcome 6). • Moreover, the NDP accentuates the necessity of sound economic infrastructure as a necessary condition for economic growth. The country’s transport infrastructure is thus a key priority. • The major recommendations of the NDP are to improve public transport planning & integrate it with spatial planning. • Furthermore, it puts emphasis on the revitalisation of the commuter rail fleet.

8. Policy Priorities for 2014(continues) • The budget allocation of the Dept seeks to respond to the cardinal issues raised in the NDP. • This is evidenced by R21.6 bn (44.4%) & R15. bn (30.9%) of the budget allocation which go to the Road Transport and Rail Transport Programmes respectively & R11.3 bn (23.2%) that is allocated to the Public Transport Programme. • This augurs well for economic growth & job creation & will stand the country in good stead in attracting investors &

9. Policy Priorities for 2014(continues) tourists.

10. Budget Analysis

11. Budget Analysis (continues)