{"id":48624,"date":"2012-04-25T16:55:37","date_gmt":"2012-04-25T14:55:37","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=48624"},"modified":"2012-04-26T11:12:03","modified_gmt":"2012-04-26T09:12:03","slug":"e-tolling-unreasonable-only-viable-option","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/technology\/48624-e-tolling-unreasonable-only-viable-option.html","title":{"rendered":"E-tolling: unreasonable, only viable option"},"content":{"rendered":"<p>E-tolling in Gauteng is the only viable way to pay for the R20 billion spent on improving the province&#8217;s freeways, Deputy Transport Minister <a title=\"Jeremy Cronin\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/417436-Jeremy-Cronin\">Jeremy Cronin<\/a> said on Wednesday.<\/p>\n<p>&#8220;If we could rewind the clock back to 2007, we would not be embarking on this project [<a title=\"Gauteng Freeway Improvement Project\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/408383-GFIP-Gauteng-Freeway-Improvement-Project\">Gauteng Freeway Improvement Project<\/a>] at all. We have made that very clear,&#8221; he told MPs during debate in Parliament on his department&#8217;s budget vote.<\/p>\n<p>&#8220;However, alas, there is R20bn debt. It&#8217;s been incurred on phase A1 [of the project]. It&#8217;s about 180km [of road].&#8221;<\/p>\n<p>Cronin, who said any further spending on the project had &#8220;categorically&#8221; been put on hold, said paying off the project debt by increasing the fuel levy was not an option.<\/p>\n<p>Doing so would be unfair to people living in other parts of the country, who would be paying for infrastructure in Gauteng.<\/p>\n<p>He also ruled out a dedicated Gauteng fuel levy, suggesting it was too onerous and costly to administer.<\/p>\n<p>Cronin was responding to a call made earlier in the House by the <a title=\"DA - Democratic Alliance\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1696-DA-Democratic-Alliance\">Democratic Alliance&#8217;s<\/a> Ian Ollis, to implement a small fuel levy to cover the cost of the project.<\/p>\n<p>Ollis told MPs that his party would, if it was in government, immediately cancel the Gauteng e-toll.<\/p>\n<p>&#8220;If the DA was in government we would cancel the Gauteng e-toll immediately. In fact we would never have implemented this wasteful collection system in the first place.<\/p>\n<p>&#8220;A small fuel levy over time would pay for the highways, as it does on the N6 to Buffalo City, and there are other options.&#8221;<\/p>\n<p>Ollis described Gauteng&#8217;s e-toll system, which is set to come into effect at the end of the month, as &#8220;the world&#8217;s most expensive toll collection system&#8221;.<\/p>\n<p>He said it would cost over R1bn a year just to collect the fees.<\/p>\n<p>&#8220;By comparison, a small fuel levy would only cost R4 million per annum to administer and the rest of the money could be put to improving the actual roads,&#8221; Ollis said.<\/p>\n<p>Cronin agreed that &#8220;the particular tolling option that has gone forward is very expensive&#8221;.<\/p>\n<p>He further said the government appreciated that there was &#8220;great unhappiness&#8221; over the introduction of e-tolling, and said he empathised with the <a title=\"Congress of SA Trade Unions\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/399517-Cosatu\">Congress of SA Trade Unions<\/a>, which has called on its members to make the tolls unworkable.<\/p>\n<p>Opening the debate on Wednesday, Transport Minister <a title=\"Sibusiso Ndebele\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/395477-Sbu-Ndebele\">Sibusiso Ndebele<\/a> said South Africa had a responsibility to service the debt incurred when the project to improve the road network in the province was implemented.<\/p>\n<p>&#8220;It is now public knowledge that South Africa has a financial obligation of R20bn to this effect, escalating to R32bn with interest over the next couple of years.<\/p>\n<p>&#8220;Failure to honour this obligation will adversely affect our country&#8217;s credit rating.&#8221;<\/p>\n<p>Ndebele said he was &#8220;encouraged&#8221; by the fact that, to date, a total of 501,245 e-tags had been sold.<\/p>\n<p>The transport department received an overall R39bn budget allocation for this financial year, which will rise to R48bn by 2014\/15.<\/p>\n<p>About R18bn of this is earmarked for roads.<\/p>\n<p><strong>E-tolling is &#8220;unreasonable&#8221;<\/strong><\/p>\n<p>The e-tolling system is so unreasonable that no reasonable person would decide to put it into effect, the High Court in Pretoria heard on Wednesday.<\/p>\n<p>The <a title=\"Opposition to Urban Tolling Alliance (Outa)\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/412554-OUTA-Opposition-to-Urban-Tolling-Alliance\">Opposition to Urban Tolling Alliance&#8217;s (Outa)<\/a> lawyer Alistair Franklin was presenting argument on why the system should be scrapped.<\/p>\n<p>He said there were disproportionate costs.<\/p>\n<p>&#8220;Collecting costs are exceeding the cost of improvement [of the road],&#8221; said Franklin.<\/p>\n<p>Outa had a prima facie case, he said.<\/p>\n<p>The minister of transport had to explain the justification for the &#8220;bizarre&#8221; decision.<\/p>\n<p>According to the <a title=\"SA National Roads Agency Limited (Sanral)\" href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php\/372008-SANRAL\">SA National Roads Agency Limited (Sanral)<\/a>, the tolls would cost about R21 billion a year. However, the minister had denied the correctness of the figure, said Franklin.<\/p>\n<p>&#8220;Decision-making powers have no explanation for it [the amount].&#8221;<\/p>\n<p>He said Sanral had also not addressed the figures in its responding affidavit submitted to the court.<\/p>\n<p>Outa was arguing that the introduction of the toll roads would be &#8220;practically impossible&#8221;.<\/p>\n<p>Sanral had estimated that one million vehicles would use the road a day and that seven percent would be non-compliant.<\/p>\n<p>Franklin said this meant that 70,000 people a day would be non-compliant.<\/p>\n<p>&#8220;There was no indication how [Sanral] will deal with those who did not comply,&#8221; he said.<\/p>\n<p>The matter continues on Thursday.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>E-tolling in Gauteng is the only viable way to pay for the R20 billion spent on improving the province&#8217;s freeways, Deputy Transport Minister Jeremy Cronin said on Wednesday, as the High Court heard from OUTA that it was unreasonable.<\/p>\n","protected":false},"author":33,"featured_media":37791,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[17],"tags":[6525,8029,5456,35,2072],"class_list":["post-48624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-e-toll","tag-e-tolling","tag-government-1","tag-headline","tag-sanral"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/48624"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=48624"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/48624\/revisions"}],"predecessor-version":[{"id":48626,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/48624\/revisions\/48626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/37791"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=48624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=48624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=48624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}