By Lehlohonolo Lehana.
Transport minister Fikile Mbalula says an announcement on the future of e-tolls will be made by finance minister Enoch Godongwana in his February 2022 budget.
In an address on Friday (26 November), Mbalula said that a decision on the controversial tolling scheme has been delayed due to an inability to finalise consultations between his department and Treasury, and Cabinet.
He explained that irrespective of what decision the government takes on e-tolls – including whether to scrap or keep the scheme – there would be a financial cost involved.
Mbalula pointed to recent discussions with the government’s creditors who have made it clear that e-tolls will need to paid for in some form. Whether e-tolls are kept in place or scrapped, they need to be paid for all the same, and a decision has to be taken, he said.
The South African National Roads Agency’s (Sanral’s) financial results published in October 2021 show that the Covid-19 lockdown had a significant impact on toll revenue, with a budgeted loss of R570 million between 1 April 2020 and 31 March 2021.
Notably, Sanral said that the Gauteng Freeway Improvement Project (GFIP) showed a revenue downturn of 31.5%.
“This project is the only Sanral toll route that receives a government grant to offset the discounts on tariffs instituted in response to public opposition to tolling on Gauteng freeways,” it said.
In 2020/21, this grant amounted to more than R2.7 billion, which includes R2.3 billion that the minister of transport, as Sanral’s sole shareholder, approved as a transfer from non-toll to toll operations to reduce the expected shortfall in collection of revenue, the group said.
Sanral’s chief executive Skhumbuzo Macozoma has repeatedly called on the government to make a decision on e-tolls.
“Bite the bullet and do so. There is not going to be an answer that is not going to affect South Africans in the pocket, including cancellation.
“Cancellation, in fact, is the most expensive of the options that are on the table. So it’s a complex decision, but it must be made. It’s not assisting that we (Sanral) don’t have a decision,” he said.
Mbalula added that there are a number of key policy developments intended to enhance the service delivery agenda in the transport portfolio.
Key among these is the Economic Regulation of the Transport Bill, which is currently before Parliament.
“It’s promulgation will transform the face of the industry and make decisive interventions to level the playing field and allow for greater economic participation by Small, Medium and Micro Enterprises (SMMEs),” the Minister said.
The Transport Economic Regulator, which will be established, is expected to aggressively drive interventions that will ensure competitiveness of the sector and lower barriers to entry to sectors that have historically been preserved for the few.
“The competitiveness of our ports remains one of the key strategic drivers of economic growth that will be given impetus by this policy direction. The monopolies in rail not only negatively affect competitiveness, but also stifle efficiencies in both freight and passenger rail.
“The resolution of outstanding issues between Passenger Rail Agency of South Africa (PRASA) and Transnet which mainly relate to access to each other’s network, will find a speedy resolution.
“While economic regulation is not a new function, it is currently fragmented along modal lines. The consolidation of economic regulation under a single institutional arrangement will ensure effectiveness.”
Entities such as the Ports Regulator, the Regulating Committee established in terms of the Airports Company Act, will be affected by the promulgation of the law, as these entities will fold into the Economic Regulator.