E-toll articles

Govt turns to ConCourt over e-tolling [23 May 2012]

23-5-2012
Pretoria - Finance Minister Pravin Gordhan has, on behalf of the South African Government, applied to the Constitutional Court for leave to appeal against the court interdict stopping e-tolling on Gauteng's roads.

In a statement, Government Communication and Information System (GCIS) said that Gordhan was being supported by the Minister of Transport, the Minister of Water and Environmental Affairs, the Gauteng MEC of Roads and Transport and South African National Roads Agency Limited (SANRAL) in the court bid.

Government was of the view that Justice Prinsloo's judgement was an unprecedented intervention in public finance matters and was a fundamental breach of the division of powers as stipulated in the Constitution, GCIS said.

"At the heart of the dispute in this case, lies a fundamental issue regarding separation of powers and whether or not a Court can exercise discretionary judgement over a governmental policy decision on appropriate funding mechanisms, revenue sources and the allocation of nationally raised revenue," Gordhan says in court papers.

Government decided in 2007, in terms of provisions of the SANRAL Act and after extensive planning and consultation, to finance the construction and maintenance of an improved Gauteng freeway system through raising debt, to be repaid through open road tolling revenue.

Government contends that it, and not the Opposition to Urban Tolling Alliance or the courts, can decide how to finance the Gauteng Freeway Improvement Project (GFIP).

Cabinet chose the user pay principle - whereby those who are getting the benefits of the improved road network contribute to meeting its costs - as an equitable way to repay the cost of GFIP, Gordhan points out.

"Citizens who enjoy higher-than-standard infrastructure ought not, as a matter of policy, to be subsidised by others who do not," he says.

As such, the equitable division of nationally collected revenue between provinces, which is governed by Constitutional principles, would be compromised by a replacement of toll revenue with general government support.

"Due to uncertainty about the implementation of the toll system, ratings agency Moody's has downgraded SANRAL's rating by two notches, raising the risk of a default and leading some investors to consider selling their SANRAL bonds.

"SANRAL's cash reserves which include the R5.75 billion received from Treasury, will be depleted by the first quarter of 2013 should e-tolling not go ahead, unless additional transfers are made from the fiscus through higher taxes for road infrastructure."

Failure to collect tolls raises the risk of SANRAL defaulting on its loans, which would trigger an immediate repayment of the entire loan book of R37.1 billion.

In such an event, government will be obliged to support SANRAL by repaying the rest of the unguaranteed debt of R14.1 billion, Gordhan adds.

"Should the guarantee be called, there is a considerable risk of negative consequences for the South African government's capacity to raise funds from capital markets. The credit rating of South Africa would also be impacted on negatively, since SANRAL is a wholly government owned entity," Gordhan says in his affidavit.

SANRAL will also need to show, in its financial statements for year-end 31 March 2012 that its existence over the next 12 months is assured to avoid a qualified audit report. But the Auditor General has indicated he may issue a disclaimer on 31 July 2012 given the uncertainty on when tolling may commence.

"This could prompt another ratings downgrade," Gordhan adds.

This uncertainty could hurt the ability of other state-owned enterprises such as Eskom and Transnet to access capital markets jeopardising the implementation of government's wide-scale infrastructure projects.

To prevent further harm to SANRAL's rating and the company's existence, government has asked the Constitutional Court to hear the matter urgently, in the second half of July 2012.
 
Gordhan announces relief in e-tolling fees [22 February 2012]

22-2-2012
Pretoria - Finance Minister Pravin Gordhan has announced a proposal that will bring about relief for Gauteng motorists with regard to e-tolling fees.

Delivering his Budget Speech, Gordhan said a special approbation of R5.8 billion was being proposed to reduce the toll burden on motorists as a result of the Gauteng Freeway Improvement Programme (GFIP).

The R5.8 billion is to be included in the 2011/12 expenditure.

"This will reduce the debt to be repaid through the toll system, and will make a steeper discount possible for regular road users," he added.

The contribution by government will ensure that tariffs are reduced by up to half the price for e-tag holders. The total debt associated with Gauteng freeway programme is R20 billion.

The new fees will see drivers of e-tag vehicles pay 30 cents a kilometer, instead of 66 cents as originally planned. There will also be a monthly cap of R550 for frequent users, the minister said. In addition, there will be a 15% discount in the rates after their toll fees reach R400.

Drivers of motorcycles will pay 20c per kilometre and non-articulated and articulated trucks would pay 75c and R1.51 per kilometre respectively.

To help ease congestion, heavy vehicles will qualify for a 20 percent discount if they use the roads during off-peak times in the day.

Taxis and other public transport operators will be exempt from toll fees.

The e-tolling system in Gauteng was due to commence in February but it was placed on hold amid a public outcry.

Many Gauteng motorists had threatened to boycott the entire tolling system by refusing to pay the fees or register for their e-toll accounts to get their e-tags. Numerous petitions against the system were circulated to have it halted.

Motorists complained about the unaffordability of toll tariffs, despite government reassessing them and making them cheaper.

SANRAL halted the e-tolling so that could address the concerns and issues raised by the public in petitions submitted against the system.
 
E-tolling to go ahead, discussions to continue [8 March 2012]

08-3-2012
Pretoria - Government is forging ahead with the implementation of the e-tolling system on Gauteng's freeways but discussions with stakeholders to explain the move will continue, Minister in the Presidency Collins Chabane said on Thursday.

Speaking in Cape Town following this week's ordinary Cabinet meeting, Chabane said government had noted the overwhelming number of people who turned out for the protest marches organised by the Congress of SA Trade Unions (Cosatu) on Wednesday against e-tolling and labour broking, but the decision to implement the system on 30 April has not changed.

"Government has over a long period, consulted various stakeholders in business and civil society on the issue of e-tolling on Gauteng upgraded freeways and these discussions will continue," Chabane said.

Cosatu wants the government to scrap the system while it is also demanding the ban of labour brokers. Yesterday, the union's General Secretary Zwelinzima Vavi argued that e-tolling in the province would seriously affect the poor, a claim that has been challenged by government.

Chabane said: "The fact that government has taken steps to mitigate in the form of R6.8 billion from National Treasury is recognition of the importance to reduce the burden not only on the poor but all the affected road users."

As a result of the Treasury's intervention toll fees were slashed by almost half of the original price.

The reduced fees will see cars with e-tags pay 30c per km, motorcycles charged 20c per km, while non-articulated trucks pay 75c per km and articulated trucks will be charged R1.51 per km.

There will also be a frequent-user cap of R550 a month for light vehicles and motorcyles, as well as a "time-of-day" saving of 20% for heavy vehicles. Drivers of motorcycles will pay 20c per km and non-articulated and articulated trucks would pay 75c and R1.51 per km respectively.

To help ease congestion, heavy vehicles will qualify for a 20 per cent discount if they use the roads during off-peak times in the day. Taxis and other public transport operators will be exempt from toll fees.

Chabane said the fact that taxis and busses, a mode of transport used by the majority of the workers, will be exempted from paying fees, was further testimony to government's willingness to lessen the financial load on regular road users.

Government has consistently said the e-tolling system would go a long way in addressing the backlog in road construction and maintenance programmes throughout the country. It said although the system has been criticized and opposed by political parties, individuals and civic organizations, no attention has been paid to the benefits of this system.

These benefits include, among others, a high quality road network, improved road safety, and reduced travelling distances, which result in substantial savings on the running costs of their vehicles.

They also eliminate delays, unreliable travel times, and levels of discomfort and inconvenience.

In Gauteng fees collected would also help the South African National Roads Agency Limited (SANRAL) pay back a R20 billion loan that was granted to the agency for the Gauteng Freeway Improvement Project.

SANRAL has in a statement dismissed media reports that it will gain uncontrolled access to motorists' bank accounts if they register for e-tolling.

On the issue of labour brokers, which Cosatu has labelled "an exploitation of the worst form", Chabane said discussions on the matter were heading towards finalisation in the National Economic Development and Labour Council (Nedlac).

"We have said the matter (of labour brokers) is being discussed and finalised in the processes of Nedlac," Chabane said, adding that a positive was in sight.

Apparently the discussions have centred on eliminating abuse practices within the labour brokering industry with Chabane acknowledging that some within the industry were involved in exploitative practices.
 
Nice collection of articles. It really reminds us of the struggle that we went though under the present leadership.
 
Mixed reaction to toll announcement [22 February 2012]

22-2-2012
Cape Town - There was mixed reaction to Finance Minister Pravin Gordhan's Budget Speech on Wednesday, with trade union federation Cosatu vowing to push ahead with a planned strike against freeway tolling in Gauteng on 7 March.

This is despite Gordhan announcing earlier in the day that the Treasury had put together a special approbation of R5.8 billion to reduce the toll burden on motorists.

The costs of the Gauteng Freeway Improvement Programme amount to R20 billion, with the South African National Roads Agency Limited (Sanral) introducing the tolling system in the province to pay the debt.

Gordhan said today the R5.8 billion would help reduce the debt to be repaid through the tolls and would make a steeper discount possible for regular road users. The contribution by government would ensure that tariffs were reduced by up to half the price for e-tag holders.

As a result, e-tag motorists would not pay more than R550 per month on toll fees.

Transport Minister Sibusiso Ndebele expressed disappointment at Cosatu's stance and that of other activists who had said they would continue to boycott the tolling system, which has been the subject of a fierce debate for months now.

Speaking to BuaNews, he appealed to those opposing the tolls to engage government in a more "reasonable way".

"I think we have made major progress in this regard and my appeal to those still opposing this is for them to appreciate the government's acceptance to make a contribution to this, a very major contribution of R5.8 billion and I think we should be able to move forward now," Ndebele said.

"Everyone has been heard, the government has been listening and all of us have got to understand the position we find ourselves in. This is the best that could have been done."

Government would continue to listen to those who still had a different view on the matter, with the aim of finding an amicable solution.

Business Unity South Africa said it welcomed the contribution of the Treasury to the tolling bill, describing it as a "welcome compromise".

"We have to say that we see this as a welcome compromise on the part of the government because we really have to get to some finality on this matter," CEO Raymond Parsons said.

He was also pleased about the announcement that the state would have about R4.5 trillion in resources, drawn from a range of financing methods, over the next three years to fund key infrastructure projects.

Gordhan announced the figure in a media briefing shortly before he delivered his Budget Speech in Parliament on Wednesday.

The Budget Review lists 43 major infrastructure projects that will each take between seven and eight and a half years to complete and require R3.2 trillion in spending over the next few years.

"The area we need to concentrate on now is implementation and actually making sure that we make it happen. We've been on this road before, we need to take measures in ensuring that what was said in the State of the Nation Address and what has been said in the budget actually gets to be done," Parsons said.

The Congress of the People said while Gordhan's budget made promising pronouncements, the party remained sceptical on whether there was enough capacity to implement the projects at the targeted speed.
"Generally, it's a good budget we must say. We will need to study further some of the figures but our concern is really in the implementation. It's good to present something but ensuring that it gets off the ground is something else. We will wait with interest to see everything being put into practice," said COPE MP Smuts Ngonyama.
 
Dept to study court judgment on e-tolling [29 April 2012]

29-4-2012
Pretoria- The Department of Transport says it has noted the judgment handed down by the North Gauteng High Court regarding the implementation of e-tolling on the Gauteng Freeway Improvement Project road network.

On Saturday, the North Gauteng High Court granted an urgent interdict against e-tolling, placing the project on hold until a full review can take place. The system would have kicked off on 30 April.

The matter was brought to the High Court by the Opposition to Urban Tolling Alliance (Outa), South African Vehicle Renting and Leasing Association, the Quadpara Association of South Africa and the South African National Consumer Union.

"We respect the decision. We will study the ruling thoroughly and decide on the next course of action," the department said in a statement.
 
Give Sanral space, support to continue delivering roads [11 May 2012]

11-5-2012
Pretoria - Transport Minister Sibusiso Ndebele says the Board of the South African National Roads Agency Limited (Sanral) should be given space and support to continue delivering quality road networks in the country.

In a statement, Ndebele commended the Sanral board for working swiftly to provide leadership and clarity following the announcement of the resignation of its Chief Executive Officer, Nazir Alli earlier this week.

"The board must be given space and the necessary support as they work towards ensuring that Sanral continues to deliver quality road networks to the people of South Africa. They will within a reasonable period of time undertake a thorough process of finding a suitable candidate to steer Sanral forward," said the minister.

"We express our sincere gratitude to Alli for his contribution to the success of Sanral over the years," he said.

Ndebele said they have not been made aware of the reasons behind Alli's decision to leave the agency. "We respect his decision and wish him well with his future endeavors," he said.

The minister expressed his confidence that the board will give the necessary support and guidance to the acting Chief Executive Officer Koos Smit.

"We wish to congratulate Smit and wish him all of the best in this critical position. We assure taxpayers, relevant stakeholders, Sanral board and staff of our unqualified support for the agency during this period and beyond.

"Sanral is a very critical agency of our government and nation at large. It is responsible for 18 000 km's of the country's road network. Roads are our nation's lifeblood," he said.

The department on Friday rubbished media reports suggesting that Chris Hlabisa topped the list of people to take over as Sanral CEO.

"The report is devoid of any grain of truth, misleading and can only be aimed at causing confusion and advancing narrow self-interests at the expense of the department and SANRAL's currency. The insinuation that Hlabisa is "Ndebele's buddy" is a figment of someone's imagination aimed at casting aspersion over a professional working relationship," said the department.

Once the board finalises the process and agrees on a candidate, it will request Ndebele to table its recommendation before Cabinet, which has the authority to appoint or not to appoint.
 
GP motorists urged to register for e-tolling [28 February 2012]

28-2-2012
Johannesburg - Gauteng MEC for Roads and Transport Ismail Vadi has urged Gauteng motorists to register for the e-tolling system and get their e-tags ahead of the implementation of the Gauteng Freeway Improvement Programme (GFIP).

"Registering for e-tolling is the right thing to do. We want all motorists in the province to register for their e-tolling accounts so that they can get their e-tags," said Vadi during a post-State of the Province Address media briefing at the Gauteng Legislature on Tuesday.

The implementation of the e-tolls system was halted in January after a public outcry over the fees. However, government is set to commence the programme from 30 April after Finance Minister Pravin Gordhan announced a special approbation of R5.8 billion to reduce the toll burden on motorists as a result of the GFIP.

The R5.8 billion, to be included in the 2011/12 expenditure, is aimed at reducing the debt to be repaid through the toll system, and will make a steeper discount possible for regular road users. The contribution by government will ensure that tariffs are reduced by up to half the price for e-tag holders.

The total debt associated with Gauteng freeway programme is R20 billion.

Some unions have since rejected the proposal and are planning a march against the implementation of the e-toll system.

Last week, Cabinet approved the Gauteng tolling system with effect from 30 April, with the tolling fees scheduled to be gazetted this week.

Cabinet spokesperson Jimmy Manyi warned that the law would take its course against those planning to disrupt the implementation of the system.

"This is a legal matter and Cabinet will not tolerate any disobedience to the law. It must be clear that if anyone is not obeying the law, then the law will take its course... We are marching forward and people must not have any illusions that this will go away, the tolls are a reality," he said.

The new fee structure will see drivers of e-tag vehicles pay 30 cents a kilometer, instead of 66 cents as originally planned.

There will also be a monthly cap of R550 for frequent users. In addition, there will be a 15 percent discount in the rates after their toll fees reach R400.

Drivers of motorcycles will pay 20c per kilometre and non-articulated and articulated trucks would pay 75c and R1.51 per kilometre respectively.

Heavy vehicles will qualify for a 20 percent discount if they use the roads during off-peak times in the day.

Taxis and other public transport operators will be exempt from toll fees.
 
GFIP stakeholder consultations kick off [15 June 2012]

15-6-2012
Pretoria - Cabinet has noted the stakeholder engagement process of the Inter-Ministerial Committee (IMC) on the Gauteng Freeway Improvement Project (GFIP) starting today.

Performance, Monitoring and Evaluation Minister Collins Chabane said engagements were to be held with Business Unity South Africa (Busa) this afternoon.

According to Busa, the engagement with Deputy President Kgalema Motlanthe will be around e-tolling, labour laws and infrastructure development.

The stakeholder engagement process of the IMC will include engagement with the Road Freight & Care Hire Associations next Tuesday and again with the Opposition to Urban Tolling Alliance (OUTA) next Thursday.

Briefing reporters on Friday, Chabane said other stakeholders will be announced when dates are confirmed.

In May, government said it was considering introducing a special Appropriation Bill to help the South African National Road Agency Limited (Sanral) to meet its obligations in the short-term.

The Deputy President said Sanral had borrowed R20 billion to fund the project and the delay in the collection of toll fees had resulted in the roads agency not being able to meet its contractual obligation.

Government has lodged an appeal in the Constitutional Court over the North Gauteng High Court's judgement, which last month halted the 30 April implementation date of e-tolling.

Motlanthe said if the Appropriation Bill was passed, government may have to take away money from other allocations in the fiscus.

A range of funding options was being considered by the government, but added that the Appropriation Bill would give Sanral and its debtors the assurance that the government would honour the debt, particularly with an important payment Sanral was due to pay in January next year.
 
Solution needed in GFIP debate [20 July 2012]

20-7-2012
"There is a recognition that many of our people are poor and at the current economic situation, they should not be overburdened by extra costs but at the same time SANRAL (SA National Roads Agency Limited) needs capital to continue doing its work," he said ahead of a meeting with trade union federation COSATU.

The meeting is part of the Inter-Ministerial Committee on the Gauteng Freeway Improvement Project (GFIP), of on-going consultations with civil society and business. The committee has previously met with other bodies, including Opposition to Urban Tolling Alliance (OUTA), which asked the courts to halt the implementation of the e-tolls. COSATU had earlier this year organised a march against the implementation of e-tolls in Gauteng.

Motlanthe, who was accompanied by Finance Minister Pravin Gordhan, said Cabinet had decided to embark on the consultation process because it became clear that there was opposition to the system and that "we come in the spirit of finding a workable solution to the challenge". The Treasury is opposing a court order setting aside the implementation of the project.

"We have open minds to listen... the idea is for us to explore the best possible solution to this challenge," Motlanthe said.

He said government could not afford to risk SANRAL's creditworthiness. SANRAL wants to use the money collected from e-tolling to repay a R20 billion loan it received for the GFIP.

Motlanthe said: "Being creditworthy means that you are able to service your debt and you are able to pay your capital loans and if SANRAL cannot pay its debt, it will mean that they can't be creditworthy. It is for this reason that we have said let us give SANRAL the support it deserves.

COSATU General Secretary Zwelinzima Vavi accepted that SANRAL "cannot walk away from the debt".

"We accept that the debt is there but we have said there could be other alternatives we can explore and we will have discussions on these today."
 
Cabinet approves transport laws bill [2 August 2012]

02-8-2012
Pretoria - Cabinet has approved the Transport Laws and Related Matters Amendment Bill, 2012 for submission to Parliament, according to a statement by the Government Communication and Information System (GCIS).

It said the Bill had been necessitated by the development of the Gauteng Freeway Improvement Project (GFIP), as well as future plans for the development of road infrastructure.

"Apart from the physical infrastructure, the GFIP will result in the operation of a road network that involves the utilisation of "intelligent" transport systems. An important component of the network is the Electronic Toll Collection (ETC) system. The Bill is essential to enable the implementation of the Electronic Toll Collection (ETC) system.

The Inter-Ministerial Committee on the GFIP, headed by Deputy President Kgalema Motlanthe, has been conducting ongoing consultations with civil society and business.

The IMC has since its formation met with the trade union federation COSATU, Business Unity South Africa (BUSA), Southern African Vehicle Rental and Leasing Association (SAVRALA), Opposition to Urban Tolling Alliance (OUTA), Road Freight Association (RFA) and religious leaders.

Motlanthe has reiterated that a speedy solution was needed to end the impasse over the implementation of the e-tolling system.

He said there was recognition that many people were poor and in the current economic situation, they should not be overburdened by extra costs, but at the same time the SA National Roads Agency Limited needed capital to continue doing its work.
 
Transparency, engagement crucial in resolving e-tolling [16 August 2012]

16-8-2012
Cape Town - Government had learned from past mistakes and would engage more with stakeholders, in the most transparent way possible, in reaching a consensus on e-tolling, said Transport Minister Ben Martins.

Answering questions at a New Age Business briefing at the Cape Town Convention Centre on Thursday, Martins acknowledged that the government had not consulted sufficiently with all South Africans on the implementation of e-tolling.

"The consultation could've been better and should've been better... it's one of the lessons we (the government) have learnt," he said.

He said the inter-ministerial committee on e-tolling had met with labour, business, the Opposition to Urban Tolling Alliance (Outa) and the SA Council of Churches.

Commenting on the blacking out by e-tolling operator Sanral of certain information on documents handed over to Cosatu earlier this year, Martins said it was unfortunate that the presentation of e-tolling information had not been as transparent as it could have been.

"The public has the right to information, only when it may be confidential for the purposes of protecting information that is classified," he said.

But he said a way had to be found to fund Gauteng's new highways and infrastructure - such as gantries - which has already been set up.

However, he did not rule out other methods of funding for the Gauteng Freeway Improvement Project, such as using the fuel levy.

"There's a need for all stakeholders to come to an agreement. At the end of the day we can't just print money, a budget has to be found somewhere," said Martins.

He believed that the issue of how the Gauteng Freeway Improvement Project will be funded, will be resolved within the next three months.

Turning to traffic safety, he said South Africans had a culture of not respecting rules and regulations.

Martins said a back-to-basics strategy was needed, which required pedestrians and drivers to obey even simple rules - such as waiting to cross a road at a zebra crossing rather than jay walking.

More driver safety campaigns run year around are needed - specifically to target speed, driver fitness and driver time behind the wheel.

However, Martins believed more regulations alone wasn't necessarily the solution, but that parents should teach their children to obey traffic rules and other regulations.

One of Martins' key priorities is to update public transport and he is confident that within the next year the country should see "major" improvements.

His department is currently engaging the Passenger Rail Agency of SA (Prasa) and the National Treasury on the purchase of new rolling stock.

Over R40 billion will be invested in passenger rail and infrastructure, including signalling and rolling stock in the coming years.

On the legislative front, his department will shortly launch a Green Paper on Maritime Shipping and also develop a unified policy on scholar transport.

The department is also developing a rail policy, which is expected to be presented to Martins in October for consideration.

The department is investigating a new regulatory model, which may result in the creation of a single transport regulator.

Martins said role players in the transport sector will be given a chance to highlight their contribution to the country, in October, which has been declared Transport Month.

The minister plans to hold meetings with premiers of the respective provinces in the coming months.
 
Government wins e-toll appeal [20 September 2012]

20-9-2012
Johannesburg - The Constitutional Court on Thursday ruled in favour of Government and the SA National Roads Agency Limited (SANRAL) in a court case that had led to the delay of the implementation of e-tolling on Gauteng's freeways.

The High Court in Pretoria had earlier granted The Opposition to Urban Tolling Alliance (Outa) an interdict against e-tolling which was scheduled to begin on some Gauteng highways on 30 April. It instructed that a full review needed to be carried out before electronic tolling of Gauteng's highways could start. The interdict prevented the SA National Roads Agency Limited (SANRAL) from collecting e-toll fees, pending the outcome of a judicial review.

SANRAL and National Treasury appealed against that court order. The agency argued that delays in the project due to the court's order prevented it from repaying debt incurred in building gantries.

On Thursday, the Concourt judges, in their unanimous decision, upheld the appeal - effectively setting aside the order of the High Court. This means that SANRAL can go ahead with the implementation of the e-tolls but it would be desirable for the appeal to be heard first.

In delivering the judgement, Deputy Chief Justice Dikgang Moseneke, said the court held that the interim order had an immediate and irreparable effect and was thus appealable.

"The judgement concluded that the interim order must be set aside because the High Court failed to consider or to give effect to the constitutional imperative of the separation of powers," said Moseneke.

In his argument to the court, Finance Minister Pravin Gordhan argued that Judge Bill Prinsloo of the Pretoria High Court had ignored the principle of the separation of powers. He said the decision to halt e-tolling would negatively affect the economy.

Under the project, motorists would pay over R0.35/km to travel on some of Gauteng's major roads.

On Thursday, Moseneke said courts must refrain from entering the "exclusive terrain" of the executive and legislative branches of government unless the instruction was mandated by the constitutional court.

The Concourt judges also went on to criticise the "deafening silence of the High Court on the important consideration of the separation of powers".

"The High Court should have held that the prejudice that would confront the motorists in Gauteng if the interim interdict were not granted did not exceed the prejudice that the National Executive, National Treasury and SANRAL would have to endure were the temporary restraining order granted."

Government welcomed the judgement, saying it reaffirmed its conviction that the North Pretoria High Court had erred in its judgement which interferes with policy making, a responsibility of the executive.

"Government respects the right of any member of the public to approach the courts to review its decisions and operations within the country's legal framework," read a statement.

"Government remains convinced about the appropriateness of the Gauteng Freeway Improvement Project, with the user-pay principle, as part of our country's investment in road infrastructure and our collective drive to grow the economy," it said.

OUTA is expected to respond to the decision at a press conference in Pretoria later today.

The development of a country's road infrastructure played a critical role in building its economy and sustaining its growth by facilitating the movement of goods and services across the country.

In 2007, Cabinet approved the extensive upgrade of roads in Gauteng as part of the Gauteng Freeway Improvement Programme (GFIP). The upgrade entailed an extensive work by SANRAL with the agency incurring costs amounting to R21 billion. With the approval of the Minister of Transport in 2008, SANRAL took a decision to declare certain highways in Gauteng as toll roads.

As part of the on-going stakeholder engagement process of the Inter Ministerial Committee (IMC) on the GFIP Project, led by Deputy President Kgalema Motlanthe, meetings had been held recently with unions, business and other concerned parties, including OUTA.
 
Anti-toll group concerned over court decision [20 September 2012]

20-9-2012
Johannesburg - The Opposition to Urban Tolling Association (OUTA) has expressed concern that the voices of Gauteng road users were not heard in the Constitutional Court today.

"While we acknowledge the importance of the separation of powers and appreciate the need for government to govern, we are concerned at how broad based citizen groups like OUTA may be constrained, in the future, from effectively challenging major decisions taken by Government...," OUTA chairperson Wayne Duvenage told reporters in Johannesburg on Thursday.

He was reacting to the Constitutional Court judgement which upheld an appeal by Treasury against the halting of the e-tolling system on Gauteng's roads.

The High Court in Pretoria had earlier granted the Opposition to Urban Tolling Alliance (Outa) an interdict against e-tolling which was scheduled to begin on some Gauteng highways on 30 April.

It instructed that a full review needed to be carried out before electronic tolling of Gauteng's highways could start. The interdict prevented the SA National Roads Agency Limited (SANRAL) from collecting e-toll fees, pending the outcome of a judicial review.

The Concourt judges, in their unanimous decision on Thursday, upheld the appeal - effectively setting aside the order of the High Court.

Duvenage's argument was whether road users were adequately consulted in 2008. Given that e-tolling was such a major policy implementation decision, the body would have expected SANRAL to have executed their public engagement process to a far greater extent than that which took place, including more detail around pricing, enforcement and implementation.

He added: "We believe that it is not in the interest of the public, the costs are too high and the decision was not taken in the interest of the public. All we are saying is that e-toll in its current form is too costly for motorists."

The Concourt concluded that the High Court should have held that the prejudice that would confront the motorists in Gauteng if the interim interdict was not granted did not exceed the prejudice that the National Executive, National Treasury and SANRAL would have to endure were the temporary restraining order granted.

OUTA has to file its responding affidavits by 1 October. The body's legal adviser Pieter Conradie noted that the review will still go ahead in November as the judgement only dealt with the interdict by the High Court. They will be demanding that SANRAL revised tariff pricing, publish final Terms and Conditions, and revise regulations among others.

Government welcomed the decision of the Concourt, saying it reaffirmed its conviction that the North Pretoria High Court had erred in its judgement which interferes with policy making, a responsibility of the executive.

"Government respects the right of any member of the public to approach the courts to review its decisions and operations within the country's legal framework," a statement said.
 
Govt meets parties for final e-toll talks

25-9-2012
Pretoria - A final round of talks between government and stakeholders on the Gauteng Freeway Improvement Programme (GFIP) got underway in Pretoria on Tuesday afternoon.

Deputy President Kgalema Motlanthe met with representatives from the Opposition to Urban Tolling, the group that had taken the SA National Roads Agency Limited (SANRAL) to court over the implementation of the e-toll system on Gauteng's roads. It is also part of an Inter-Ministerial Committee that was set up to investigate alternative funding methods.

Among those present at the meeting included representatives from the rental motor industry, business as well as the transport sector.

Motlanthe, who arrived at today's meeting, flanked by Finance and Transport Ministers Pravin Gordhan and Ben Martens, will also be meeting with church organisations as well as unions and government continues to engage with various stakeholders ahead of the implementation of the e-toll system.

Motlanthe's spokesperson Thabo Masebe said a series of meeting were scheduled for this week.

"As you are aware we have met with all the stakeholders in the past and this is probably the last round of the consultations and we expect to complete it sometime next week and government will then announce how it is proceeding on the matter," Masebe said.

Last week, the Constitutional Court in Johannesburg set aside a Pretoria High Court ruling made in April that prevented the system from going ahead, pending a judicial review in November.

This means SANRAL and the Department of Transport are legally entitled to begin rolling out the system
 
Gauteng e-toll agreement much closer [28 September 2012]

28-9-2012
Pretoria - The Gauteng e-tolling system will soon be a reality even though government and stakeholders are not at a point of conclusion at their final round of talks, but are getting closer to finding a consensus.

Speaking on SABC television last night, the country's Deputy President Kgalema Motlanthe said: "As a middle road, we believe we are making steady progress, we are really getting closer to a meeting point.

"However, I am not in a position to say so conclusively because we still have to meet other stakeholders."

A week ago, the Constitutional Court opened the way for the Gauteng e-tolling system to be implemented when it set aside a Pretoria High Court ruling made in April that prevented the system from going ahead, pending a judicial review in November.

This means SANRAL and the Department of Transport are legally entitled to begin rolling out the system.

A final round of talks between government and stakeholders on the Gauteng e-tolling system got underway in Pretoria on Tuesday afternoon.

The inter-ministerial task team has already consulted labour federation, Congress of South African Trade Unions (Cosatu) and the Opposition to Urban Tolling Alliance and will end with a meeting with the Road Freight Association.
 
Roll-out of Gauteng e-tolling to be announced soon [11 October 2012]

11-10-2012
Pretoria - An announcement on the roll-out of the Gauteng Freeway Improvement Project (GFIP) will be made very soon, says acting Minister for Performance Monitoring and Evaluation Richard Baloyi.

Addressing reporters during a post-Cabinet briefing on Thursday, Baloyi said following the stakeholder engagement processes, which are currently taking place, an announcement will be made.

The Constitutional Court opened the way for the GFIP system to be implemented when it set aside a Pretoria High Court ruling made in April that prevented the system from going ahead, pending a judicial review in November.

This means SANRAL and the Department of Transport are legally entitled to begin rolling out the system.

The final rounds of talks between government and stakeholders on the GFIP are expected to be concluded soon.

The inter-ministerial task team has already consulted labour federation Cosatu and the Opposition to Urban Tolling Alliance, and will end with a meeting with the Road Freight Association. - SAnews.gov.za
 
SANRAL ready to implement e-tolls [7 November 2012]

Compiled by the Government Communication and Information System
Date: 07 Nov 2012
Title: SANRAL ready to implement e-tolls
--------------------


By Nthambeleni Gabara

Johannesburg - The South African National Road Agency Limited (SANRAL) says it is ready to roll-out the Gauteng e-tolling system.

The system has been in operation for the past few months although SANRAL has not been charging road users, Gauteng Freeway Improvement Project (GFIP) manager Alex van Niekerk told SAnews on Wednesday.

He was speaking during a demonstration on how the system operated at the e-toll Central Operations Centre in Midrand.

"The system has been operational for a couple of months, although we were not physically charging our road users. But at the Bakwena Toll Plaza, we've been actually generating transactions, so the system has been thoroughly tested.

"We are ready to commence with Gauteng e-tolling system," he said.

As the tolling has not yet been implemented at the upgraded GFIP roads, van Niekerk said over 10 000 road users were already using their Gauteng e-toll accounts to pay their tolls at the Bakwena electronic tolling facilities on sections of the N1 and N4 highways.

"This means that these road users who chose to activate their Gauteng e-toll accounts for use at Bakwena do not have to wait in queues in the manual payment lanes, which saves them time," he explained.

Van Niekerk said it was very important for people to get their e-tags and have them fitted before the implementation of the Gauteng e-tolling system.

"E-tag road users also qualify for a whole spectrum of discounts, meaning that they pay the lowest possible toll fees. The most cost effective method of toll collection is from a compliant registered e-tag account holder," he said.

According to van Niekerk, SANRAL has monitored over two million vehicles in the last few months and discovered that more than 90 percent of e-tag users in the light motor vehicle category will pay less than R200 a month in toll fees.

He reiterated that motorists do not have to provide SANRAL with their banking details when registering for e-toll, adding that there was the option of a prepaid account where users can pay for their toll fees in cash or by debit card at the e-toll customer service outlets or by electronic funds transfer (EFT).

At the Operations Centre on Wednesday, reporters were taken through a demonstration of the transaction process cycle - from roadside collection to the transaction clearing house and the violations processing centre for outstanding fees.

Last month, the Department of Transport gazetted the toll tariffs and regulations for public comment that will apply to users of the toll road network in Gauteng.

The gazetting of the toll tariffs marks the beginning of a 30-day period for public comment. Government will, after the 30-day period - having considered the views of the public - publish the final tariffs.

The proposed standard toll tariff is 58c/km for light vehicles (class A2), while the e-tag tariff is 30c/km for the same class vehicle.

Class A1 (motor cycles) will pay 18c/km under the e-tag tariff; while the Class B (med heavy) e-tag tariff is 75c/km and Class C (heavy vehicles) e-tag tariff is R1.50/km. - SAnews.gov.za
 
Gauteng e-tolls not commencing this year [23 November 2012]

23-11-2012
Pretoria - The e-tolling system on Gauteng's roads will now only commence next year.

The Transport Laws and Related Matters Amendment Bill regulating government's ability to charge motorists for using the tolls was withdrawn from Parliament on Thursday, and will now be debated next year, it was reported.

Following a recommendation of the Inter-Ministerial Committee on the Gauteng Freeway Improvement Project (GFIP), led by Deputy President Kgalema Motlanthe, Cabinet recently decided that the South African National Roads Agency Limited (Sanral) should proceed with the implementation of the e-tolling system.

The Inter-Ministerial Committee has since May this year engaged in a series of stakeholder consultations involving organised labour, business, the commercial transport sector, organisations representing people with disabilities and the religious community.

In the consultations there was agreement by all parties that the tolled roads have improved, and travelling times have been reduced.

Most of the stakeholders consulted agreed on the user pay principle and further, that the e-toll system should be part of a mix of mechanisms to be employed to address the problem of congestion, as well as to raise funding for the construction and maintenance of freeways.

Stakeholders raised concerns about the high operational costs for the e-toll system. Government shared this concern and committed that everything possible would be done to reduce these costs and limit the financial burden on the consumers. - SANews.gov.za
 
Govt departments urged to register vehicles for e-tolls [6 December 2012]

06-12-2012
Pretoria - Cabinet has called on government institutions to register all their vehicles for the Gauteng e-tolling system.

"Cabinet noted that the public consultation process outlined in the government gazette on the Gauteng Freeway Improvement Project (GFIP) has ended, and calls on all government institutions to register all their vehicles for e-tolling," Minister in the Presidency responsible for Performance Monitoring, Evaluation and Administration, Collins Chabane, told reporters on Thursday at a Post-Cabinet briefing.

In October, the Department of Transport gazetted the toll tariffs and regulations for public comment that will apply to users of the toll road network in Gauteng.

The gazetting of the toll tariffs marked the beginning of a 30-day period for public comment and now that the consultation process has ended, government will consider the views of the public and publish the final tariffs.

Government has proposed that toll fees for e-tag users be capped at R550 a month for light vehicles, adding that monthly toll caps for e-tag registered heavy vehicle users have also been introduced.

The proposed standard toll tariff is 58c/km for light vehicles (class A2), while the e-tag tariff is 30c/km for the same class vehicle.

Class A1 (motor cycles) will pay 18c/km under the e-tag tariff; while the Class B (med heavy) e-tag tariff is 75c/km and Class C (heavy vehicles) e-tag tariff is R1.50/km.

In September, the Constitutional Court opened the way for the GFIP system to be implemented when it set aside a Pretoria High Court ruling made in April that prevented the system from going ahead, pending a judicial review in November.

The country's first multi-lane free-flow toll system using Electronic Toll Collection (ETC) is billed to give road users a smoother and safer journey. - SAnews.gov.za
 
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