[May 2013..Dec 2013] The Gauteng E-tolling Thread

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Sell-outs.

as I mentioned in another thread, big business are complicit in corruption through their silence and bending over for crap like this, they're out to screw the citizens of this country as much as government is
 
Ya, problem is it's a lot harder for business to stand up to them. You make yourself a target and SANRAL will come down harder on companies than on masses of anonymous individuals.

Some of the prominent members of SACCI are Pfizer, Siemens, Nedbank, Microsoft SA, Denel, Eskom, Transnet, Safmarine.

I'm sure Eskom and Transnet are all for it, as for the multinationals, I don't see why they would care.
 
Some of the prominent members of SACCI are Pfizer, Siemens, Nedbank, Microsoft SA, Denel, Eskom, Transnet, Safmarine.

I'm sure Eskom and Transnet are all for it, as for the multinationals, I don't see why they would care.

Point being they don't want to make themselves a target. SANRAL will jump at the opportunity to hammer them for non-compliance. It'll be a PR exercise. As an individual you can possibly tell them to get fscked, but large companies can't hide and wait for others to take the hit.
 
@MaimaneAM launches E-tolls Programme of Action
Date: 26 November 2013
Release: Immediate

Note to editors: These remarks were delivered by Mmusi Maimane at a rally at the Orange Farm taxi rank to mark the start of a province-wide programme of action against e-tolling.

Today we are gathered here in the community of Orange Farm to send a clear message to government: we can’t afford e-tolls!
Today the collective taxi owners of the Orange Farm Taxi Association have signed up membership with the DA. They have joined our fight not just against e-tolls, but for a clean government that puts job creation and delivery at the centre of change.

This is the start of a programme of action to mobilize communities across Gauteng to vote out the party that brought us e-tolls.
That’s why we have billboards lining the highways saying: “A vote for the DA is a vote against e-tolls”.

The fact is that e-tolling will create a knock-on effect which will increase the cost of food and other living expenses for every resident of Gauteng. This is on top of unfair additional travelling expenses for using the highway.

That is why we are in court to get the E-tolling Act sent back to Parliament because it was unconstitutionally passed.
That is why we will call a provincial referendum when we govern to give the people a voice, and a vote, against e-tolls.

With this programme of action we will take the true cost of e-tolling directly to the people in each region of Gauteng.
The trucks which bring food and clothing and other necessities to Orange Farm will face increased traveling costs which will be reflected in increased prices for these goods.

Taxi drivers told me today that even though they are exempt from the system, they are still concerned that e-tolling will affect their business.

Tolling will kill jobs, and if people don’t have jobs they will not need to make use of taxi’s to travel.

Small business owners in Orange Farm who travel to Johannesburg to collect supplies will pass through at least two gantries in addition to other tolls on a return trip at an approximate cost of R5, 45 per day, R 27,25 per week, R109 per month. If they travel further a-field to Midrand for example they could pay up to R80 a day and R1000 a month.

Sanral continues to tell us that e-tolling will only impact a small portion of road-users but they have failed to talk about the true cost of e-tolling.

Orange Farm and its people can’t afford e-tolling and this just one community of many in Gauteng who will be similarly affected.
For other major routes in the South of Gauteng, the costs of e-tolling will be –

From Daveyton to Johannesburg: The user will pass through at least five gantries on a return trip at an approximate cost of R13, 92 a day. This equates to R69, 60 a week and R278, 40 a month.

From Alexander to Centurion: The user would pass through at least six gantries at an approximate cost of R17, 31 a day. This equates to R86, 55 a week and R346, 20 a month.

From Soweto to Midrand: The user will pass through at least 11 gantries on a return trip at an approximate cost of R29, 64 a day, R148,20 a week and R592,80 a month.

Tembisa to Germiston: The user will pass through at least four gantries on a return trip at an approximate cost of R14, 40 per day. This equates to R72 per week and R288 per month.

Pretoria/Shoshanguve/ Mamelodi to Johannesburg: The user will past through at least 14 gantries on a return trip at an approximate cost of R37, 92 per day, R189,60 a month and R758,40 a month.

Tsakane – Kempton: The user will pass through at least 6 gantries on a return trip at an approximate cost of 13, 34 per day, 66, 70 per week, R266, 80 a month

Everyone must take a stand against this injustice that has been forced on us and not buy an e-tag; it is not illegal to do so.

As the DA’s Gauteng Premier Candidate, I will continue to do everything in my power to fight e-tolling. This includes a legal bid to reclassify the legislation governing e-tolling as well as plans to fight the system should I be elected as Premier in 2014.
 
So I just plugged truck data into my pricing model to see what sort of impact this will have, and as it turns out the trucking industry will be subject to a R275 million per month input cost increase, which equates to R3,3bn per year added to their costs with the flick of a switch. Factor in opportunity to factor prices upwards and you're looking at consumer price increases of around R4bn per annum spread across all products.

So when Mmusi Maimane refers to the prices of goods increasing, he's not understating that fact at all. Consumer and producer prices will need to increase across the board by around R4bn simply to sustain the e-tolling system with CPI-related increases...
 
Of course the etolls will also push up cpi which means that etolls can be raised more....
 
And even though CPI and PPI are closely linked, the opportunity to add principle increases to products at the same time is a risk. So we might see a variance in PPI and CPI unless that cost is also passed on. R4bn is a very low mark number for this as I;ve also understated Sanral's operational expenditure and sub-contracting pricing to ETC...
 
THE Opposition to Urban Tolling Alliance (Outa), which is locked in battle with the South African National Roads Agency (Sanral) and the government, is opening a new legal front in its campaign to frustrate e-tolls in Gauteng.

Outa chairman Wayne Duvenage said on Monday this would include co-ordinating support for the first court case to test the legality of nonpayment of toll fees.

The campaign, to be started in the "next week or so", includes providing a service to road users at R50-R60 a month that includes "a panic button and support line for if you get pulled over, along with a know-your-rights campaign ... a whole host of benefits will be rolled out".

"There will be a very focused strategy to empower people with support, including legal support in a court intervention as well as civil courage campaign to not tag-up and not to pay e-tolls."

Outa needs to raise about R2m to support the first test case and this would mean the alliance would need about 15,000 people to set up a monthly debit order of about R60, raising the necessary funds within a year.

Last week, Transport Minister Dipuo Peters said e-tolls would go live on December 3, two-and-a-half years later than first announced.

On Monday, law firm Findlay & Niemeyer offered to conduct a test case defence for one of the first noncompliant e-toll road users. Mr Duvenage said another, still unnamed, law firm would also be part of the support Outa was helping to co-ordinate.

Senior partner John Price said his firm would defend the test case to "promote and enforce" section 217(1) of the constitution, which "requires the government to contract for a system (in this case, the tolls) that was ‘fair, equitable, transparent, competitive and cost effective’".

Mr Duvenage said Outa had been working with Mr Price and another firm of attorneys to co-ordinate the information from Outa’s thwarted legal challenges.

"It is not over by a long way," he said. "Outa is busy forming its strategy … we have an extremely strong case. Remember the lawfulness argument has not been heard — the Supreme Court of Appeal was very clear that that matter needed to be addressed at the appropriate time and they were not going to address it in the review process."

Outa lost its appeal application when the court ruled on the technicality that Outa had taken longer than six months to object to the programme as provided for under the law.

Responding to the news of possible legal challenges, Sanral spokesman Vusi Mona said anyone wanting to set a judicial precedent by challenging the enforcement of e-tolls was "welcome". Sanral was "confident we have done everything by the book" and already had three court rulings in its favour.

The enforcement of e-tolls would first be administered by Sanral’s own debt collection system — through a series of infringement notices coupled with discount incentives for payment, Mr Mona said.

Justice Project South Africa chairman Howard Dembovsky said Sanral was using the Criminal Procedure Act to "threaten people with being criminals if they don’t pay".

http://www.bdlive.co.za/business/transport/2013/11/26/outa-to-open-new-front-in-battle-on-gauteng-e-tolls
 
http://www.bdlive.co.za/business/transport/2013/11/26/outa-to-open-new-front-in-battle-on-gauteng-e-tolls
The campaign, to be started in the "next week or so", includes providing a service to road users at R50-R60 a month that includes "a panic button and support line for if you get pulled over, along with a know-your-rights campaign ... a whole host of benefits will be rolled out".
One has to wonder if SANRAL is going to jump on this and remind us all of their “less than 1% will pay more than R100” number. Being the spin-master that he is, Vusi Mona should be able to demonise OUTA quite easily.

And in other news, SANRAL really can’t see what all the fuss is about:
Motorists will find e-tolls fuss was storm in a teacup
(some highlights)
Take a look at the oft-repeated assertion that e-tolling will cost you an arm and a leg. Respected economist Azar Jammine of Econometrix did the sums: the drain on total private consumption expenditure will be about 0.1% — that is, R1 for every R1,000. For those in Gauteng, it will automatically be higher — at 0.3%, or R3 for R1,000 spent. Mr Jammine is not a great fan of e-tolling but even he acknowledges the effect will not be that significant.
There is also a cap of R450 a month and it has been calculated that less than 1% of road users will pay that sum. Almost 83% of all road users will have to pay less than R100.
These are the simple facts about e-tolling. The rest that you, the ordinary road user, have heard or read is so over the top you can safely ignore it.
When e-tolling kicks in, you will be surprised at how little your pocket has been affected — and wonder what the fuss and noise was all about.
 
So let's have a look at this based on their current financial statements, without understating their expenditure, and including revenue generated from trucks which I excluded from my previous calculations. They currently operate on a 35% operational profit margin. So let's extrapolate that into their costs going forward, while including revenue from trucks, assuming 100% compliance with trucks, and scenarios based on lower compliance levels with private cars:

Here is the 100% compliance rate:

Sanral_pricing_incl_trucks_100_.png


As you can see, assuming no net profit, no tax, no other interest, no depreciation, and 3 million active users per month, the bare minimum year on year increase required is 10%...

Here is 66% compliance:

Sanral_pricing_incl_trucks_66_.png


And once again, assuming no net profit, no tax, no other interest, no depreciation, and 2 million active users per month, the bare minimum year on year increase required is 15,79%...

Now let's look at 33% compliance:

Sanral_pricing_incl_trucks_33_.png


Finally, assuming no net profit, no tax, no other interest, no depreciation, and 1 million active users per month, the bare minimum year on year increase required is 28,7%.

So I think this paints a more accurate reflection of what is going to be required in order for the system to remain operational, although we haven't factored in any depreciation, taxation, or interest outside of the bond issuances. I'm not going to start doing their complete financial forecasts for them now...:D
 
One has to wonder if SANRAL is going to jump on this and remind us all of their “less than 1% will pay more than R100” number. Being the spin-master that he is, Vusi Mona should be able to demonise OUTA quite easily.

And in other news, SANRAL really can’t see what all the fuss is about:
Motorists will find e-tolls fuss was storm in a teacup
(some highlights)

I'll pay R50-R60 for charity than pay R100 to something I don't believe in.
 
So let's have a look at this based on their current financial statements, without understating their expenditure, and including revenue generated from trucks which I excluded from my previous calculations. They currently operate on a 35% operational profit margin. So let's extrapolate that into their costs going forward, while including revenue from trucks, assuming 100% compliance with trucks, and scenarios based on lower compliance levels with private cars:...
Using the truck numbers with a 100% compliance by trucks, how does the total monthly income split look between the cost brackets?

Also, noting that trucks have a monthly cap of R3500 (tagged), how is this number related to the inflation limit on price increases? Could the increase of the cap by more than inflation be challenged legally?
 
Non-registered motorists beware

A hefty bill awaits non-registered motorists without e-toll accounts who fail to pay for e-tolling within a week.

Such an individual would end up paying nearly six times more in toll fees, according to the SA National Roads Agency Limited website.

Sanral says tariffs differ depending on whether motorists have both an e-toll account and an e-tag, or having an e-tag without an e-toll account.

Those without both would end up paying much more.

Motorists with e-toll accounts are registered, and those without are non-registered.

If a driver with a VW Volkswagen (Class A2) does not have an e-toll account and an e-tag, and his daily trip consists of passing the Barbet e-toll gantry on the N1 between Watermeyer and Lynnwood Road, he will have to pay R3.48, according to the website.

"However, if he does not pay within seven days of passing the Barbet e-toll gantry, he will be classified as an alternative user and would need to pay R10.44," says Sanral.

A registered e-tag user with the same vehicle, driving the exact same stretch of road will pay R1.80 if paid within a week of passing the gantry, his e-toll account is up to date, and he qualifies for the 'time of day' and 'frequent user' discount.

A registered VLN user driving the same vehicle on the same stretch of road will pay R3.48 because he does not have an e-tag.

"Because he is registered, is paying within seven days of passing the Barbet e-toll gantry, and his e-toll account is up-to-date, he qualifies for the time of day discount," said Sanral on the website.

A non-registered e-tag user will pay R3.48 with the same vehicle on the same stretch of road.

The agency said should a road user not have an e-toll account, or a day pass, the motorist can pay within a seven day grace period from the time he or she passed the gantry.


Source : Sapa /mar/hdw/ks/jje
Date : 26 Nov 2013 14:22
 
I wonder how big Vusi Moaner's team is, they must all be working overtime to churn out so much spin.
 
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