LazyLion
King of de Jungle
Submit your view on E-Toll Tariffs to Government here! - http://goo.gl/eIwEp
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Article: E-toll tariff now 30c per km
- Thread starter rpm
- Start date
patrick
Expert Member
Hello voters, I'd like to pillage you and make you really upset a year and a half before voting time. Is that ok?
Sounds like a really bad political move this one...
Sounds like a really bad political move this one...
Sinbad
Honorary Master
- Joined
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Watch the about face 3 months before voting time, complete with "see the ANC loves you, vote for us "
Mila
Honorary Master
Bump. Remember to send your objections
LazyLion
King of de Jungle
and you guys should have actually copied OUTA at [email protected]
I hope OUTA demands to see the feedback received by Govt.
I hope OUTA demands to see the feedback received by Govt.
LazyLion
King of de Jungle
If you use the link I posted it automatically BCC's to OUTA.
Mila
Honorary Master
Bump.
Pleased remember
Pleased remember
Cool E
Expert Member
Bump.
Pleased remember
to bug etag
http://www.itweb.co.za/index.php?op...e-toll-rates-financially-irrational-&catid=69
Reduced e-toll rates 'financially irrational'
By Bonnie Tubbs, ITWeb journalist.
Johannesburg, 9 Nov 2012
Government will face an uphill battle in the collecting of e-tolls, says Alex Eliott, director at law firm Eversheds SA.
Government will face an uphill battle in the collecting of e-tolls, says Alex Eliott, director at law firm Eversheds SA.
The reduced e-toll tariffs gazetted last month - reduced from the original rates put forward in 2011 - will ironically render e-tolling even less cost-effective, according to a legal expert.
Alex Eliott, director at law firm Eversheds SA, adds that the reduced fees will ultimately see government’s push to implement the system becoming “financially irrational”.
He explains that the proposed amendment to the SA National Roads Agency (Sanral) and National Roads Act will see the cost of collecting the proposed e-tolls outweigh the value of the e-tolls itself.
“The proposed amendment by government could easily see Sanral paying R20 in collection costs for every unregistered vehicle. This could ultimately cost Sanral substantially more than what it collects in e-tolls over a year.”
Ironic predicament
Eliott says for this reason, government’s proposed implementation of the e-tolling system and gazetted tariffs are laden with irony.
“Although government recently tried to soften the blow to motorists by announcing e-tolls will be far lower than previously announced, this makes the collection of e-tolls from those unwilling or too lazy to register with Sanral, even less cost-effective."
Eliott explains that the administrative costs involved in billing unregistered users will outweigh the value of the e-toll process.
This is in addition to the amendment that includes a legal presumption that the driver/user of the vehicle is the owner of the vehicle. "Legally, this presumption cannot be imposed on Gauteng’s vehicle owners, without providing them with an opportunity to refute the claim that they were not driving the vehicle when the e-toll was imposed.
“Interestingly, the presumption itself goes against the ‘user pays’ principle, which was, according to National Treasury, a cornerstone of the e-tolling system.
“Here again, issuing the written e-toll claim and ensuring it is imposed on the correct person involves administrative costs that, practically speaking, will undoubtedly outweigh he value of the e-toll process.”
Binding e-registration
Eliott says, unless government institutes a law that all Gauteng residents with vehicles are duty-bound to register with Sanral, the reduced tariffs do not make financial sense for the government.
Finance minister Pravin Gordhan announced reduced tariffs in February, and Government Gazette number 35756 (of 25 October) publicly gives tariffs for standard, e-tag, alternative users, discounted rates and exemptions from payment of tolls. According to proposed tariffs, motorists with e-tags will pay 30c per km – down from the original 49.5c proposed in 2011. Motorcyclists will pay 20c, down from 24c; non-articulated trucks will pay 75c, down from 100c; and articulated trucks R1.51, from R2.
At the time, Gordhan also announced that National Treasury would make a contribution of R5.8 billion to the Gauteng Freeway Improvement Project (GFIP), for which e-tolling was created.
The public proposal of tariffs marked a 30-day period for public comment, after which government will take 14 days to consider input and publish its final position. Government will then take a further 14 days to re-gazette the tariffs and implementation is in this case set to begin before Christmas.
Flagship project
On the flipside, a study by the Gordon Institute of Business Science (University of Pretoria) earlier this year suggested the e-toll system is, in fact, progressive.
Roelof Botha, adjunct faculty at the university, says the e-tolling system is a flagship project, especially in terms of raising SA’s international competitiveness.
He says that, on average, if road users were to take the time savings per year because of congestion relief and translate 15% of that time saving into productive work, net benefit for every R1 of toll fees paid would be R8.84.
“Assuming that 15% of the commuting time saved as a result of the GFIP will be translated into productive earnings, an annual net benefit of more than R2.1 billon accrues to the South African economy.”
Eliott says he would argue the opposite, suggesting government will face an uphill battle in collecting e-tolls. “I would dare say the system itself will become the province’s white elephant – costing it more than it brings in tax collections.”
The only real way for government to get around this risk, he says, is to force all Gauteng residents with vehicles to register with Sanral for e-tolling. “Although this could cause another upsurge from Gauteng residents similar to that which we saw prior to the amendment being drafted.”
Reduced e-toll rates 'financially irrational'
By Bonnie Tubbs, ITWeb journalist.
Johannesburg, 9 Nov 2012
Government will face an uphill battle in the collecting of e-tolls, says Alex Eliott, director at law firm Eversheds SA.
Government will face an uphill battle in the collecting of e-tolls, says Alex Eliott, director at law firm Eversheds SA.
The reduced e-toll tariffs gazetted last month - reduced from the original rates put forward in 2011 - will ironically render e-tolling even less cost-effective, according to a legal expert.
Alex Eliott, director at law firm Eversheds SA, adds that the reduced fees will ultimately see government’s push to implement the system becoming “financially irrational”.
He explains that the proposed amendment to the SA National Roads Agency (Sanral) and National Roads Act will see the cost of collecting the proposed e-tolls outweigh the value of the e-tolls itself.
“The proposed amendment by government could easily see Sanral paying R20 in collection costs for every unregistered vehicle. This could ultimately cost Sanral substantially more than what it collects in e-tolls over a year.”
Ironic predicament
Eliott says for this reason, government’s proposed implementation of the e-tolling system and gazetted tariffs are laden with irony.
“Although government recently tried to soften the blow to motorists by announcing e-tolls will be far lower than previously announced, this makes the collection of e-tolls from those unwilling or too lazy to register with Sanral, even less cost-effective."
Eliott explains that the administrative costs involved in billing unregistered users will outweigh the value of the e-toll process.
This is in addition to the amendment that includes a legal presumption that the driver/user of the vehicle is the owner of the vehicle. "Legally, this presumption cannot be imposed on Gauteng’s vehicle owners, without providing them with an opportunity to refute the claim that they were not driving the vehicle when the e-toll was imposed.
“Interestingly, the presumption itself goes against the ‘user pays’ principle, which was, according to National Treasury, a cornerstone of the e-tolling system.
“Here again, issuing the written e-toll claim and ensuring it is imposed on the correct person involves administrative costs that, practically speaking, will undoubtedly outweigh he value of the e-toll process.”
Binding e-registration
Eliott says, unless government institutes a law that all Gauteng residents with vehicles are duty-bound to register with Sanral, the reduced tariffs do not make financial sense for the government.
Finance minister Pravin Gordhan announced reduced tariffs in February, and Government Gazette number 35756 (of 25 October) publicly gives tariffs for standard, e-tag, alternative users, discounted rates and exemptions from payment of tolls. According to proposed tariffs, motorists with e-tags will pay 30c per km – down from the original 49.5c proposed in 2011. Motorcyclists will pay 20c, down from 24c; non-articulated trucks will pay 75c, down from 100c; and articulated trucks R1.51, from R2.
At the time, Gordhan also announced that National Treasury would make a contribution of R5.8 billion to the Gauteng Freeway Improvement Project (GFIP), for which e-tolling was created.
The public proposal of tariffs marked a 30-day period for public comment, after which government will take 14 days to consider input and publish its final position. Government will then take a further 14 days to re-gazette the tariffs and implementation is in this case set to begin before Christmas.
Flagship project
On the flipside, a study by the Gordon Institute of Business Science (University of Pretoria) earlier this year suggested the e-toll system is, in fact, progressive.
Roelof Botha, adjunct faculty at the university, says the e-tolling system is a flagship project, especially in terms of raising SA’s international competitiveness.
He says that, on average, if road users were to take the time savings per year because of congestion relief and translate 15% of that time saving into productive work, net benefit for every R1 of toll fees paid would be R8.84.
“Assuming that 15% of the commuting time saved as a result of the GFIP will be translated into productive earnings, an annual net benefit of more than R2.1 billon accrues to the South African economy.”
Eliott says he would argue the opposite, suggesting government will face an uphill battle in collecting e-tolls. “I would dare say the system itself will become the province’s white elephant – costing it more than it brings in tax collections.”
The only real way for government to get around this risk, he says, is to force all Gauteng residents with vehicles to register with Sanral for e-tolling. “Although this could cause another upsurge from Gauteng residents similar to that which we saw prior to the amendment being drafted.”
Good luck with that one ...
From a legal standpoint there is no way that the government can force you to sign a contract with a private company especially if it's a contract that waives a whole lot of rights.
That would be like trying to force everyone to purchase property and sign up for a bond with a bank.
The only way out is to nationalize the toll collection, get rid of all the "rights waivers" and then enforce compliance from a licensing perspective.
It is just not going to work and I just cannot understand why the ANC cadres can't see the writing on the wall.
in my mind, it is just conclusive proof that the whole project is riddled with corruption..... which WILL eventually come out
LazyLion
King of de Jungle
I also think it WILL eventually come out.... but then nothing will ever come of it, just like the Arms Deal, the MPs Travelgate, and probably like Zumaville as well.
MR.C
Executive Member
- Joined
- Mar 7, 2008
- Messages
- 5,068
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- 567
I got a question.
Do you think if peope start vandalising the toll gantries, will it still work ?
So ? Why don't people start vandalising it ? I mean we are already paying for for the lights that are on every night for over a year, isn't it ?
Do you think if peope start vandalising the toll gantries, will it still work ?
So ? Why don't people start vandalising it ? I mean we are already paying for for the lights that are on every night for over a year, isn't it ?
LazyLion
King of de Jungle
That's still coming.... don't worry.
reactor_sa
Executive Member
More **** for our tax money. Anc is the best - at being the worst!
I suspect it will give them an excuse to raise the tariffs in the following years,for more security and repairing it.
daveza
Honorary Master
he's both and also Pik Botha's son - he's always mr Possitive, obviously asscreeping the ANC