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For some in society, e-tolls seem to have appeared out of nowhere.
It is, nevertheless, important to note that the project was launched in 2008, in preparation for the soccer World Cup in 2010. The Gauteng government at the time handed over control of the Gauteng Freeway Improvement Project to the SA National Roads Agency Limited (Sanral) to implement the upgrading and expansion of the road network. Between then and now, drastic changes came about that did not reflect the original spirit, which is why our party membership advanced a different view at the 2014 ANC Gauteng provincial conference.
Gauteng Premier David Makhura and his team have fulfilled their democratic responsibilities and listened to objections, and established consultation forums to affect necessary reforms.
In the 2008 plan, the proposed levy was 66c/km, and this was revised to 58c/km last year. The final Cabinet decision announced this past week reduces the levy to 30c/km.
As the ANC in Gauteng, we have heard the concerns of the people and we have acted in their interest by reforming the system.
The new dispensation bridges public sentiment and creditworthiness concerns we all have.
Moving our country forward means striking a balance between the needs of the people and the imperatives of developing South African society and our economy through large-scale and job-creating infrastructure projects.
We are acutely aware that the economy is not growing fast enough and we are extremely sensitive to the tax burden faced by citizens. The reformed e-tolls dispensation helps government avoid raising taxes. Government debt increased from a sustainable 26% of gross domestic product in 2009, to a more difficult 43.9% last year. Raising debt will result in further downgrades by ratings agencies and less affordable future interest expenses, burdening future generations. Recent downgrades already increased the cost of debt. Greater debt and higher taxation will negatively impact employment and poverty levels.
As a country, we must become self-sufficient in funding our infrastructure and reducing government debt levels. Combined, these efforts will aid our battle to lower unemployment and end poverty.
With the amendments to e-tolls now in place, we can all get back to the business of building a better economic hub in Gauteng, which will benefit all of South Africa.
The e-toll advisory panel, established last year by Makhura, made recommendations after the first extensive and inclusive consultation process with civil society, unions, political parties, academia and the public, among other organisations. In order to allow for a cohesive solution to take to national government to make a case for the people of Gauteng, who had overwhelmingly expressed discontent at the system in its previous form, this process was deliberately not rushed.
The panel found evidence to support the fact that the e-tolls benefit the economy of Gauteng through improved road quality, reduced travel time, improved fuel efficiency and reduced vehicle operating costs.
The e-toll system has been made more equitable, more affordable, more sustainable and far more administratively efficient for the user. This victory belongs to the people of Gauteng.
Our goal is to continue to transform, modernise and reindustrialise the province, and we believe the reformed tariff plan supports our effort to make Gauteng a better place to live, work and play in.
We commend the retention of important principles, such as the user-pay principle, which help maintain South Africa’s creditworthiness and promote decongestion.
We must be transparent: the reformed dispensation is a form of tax. However, we fought for a lower rate to secure our long-term economic prosperity, and stabilise relations with those who opposed the system altogether and avoid strike action.
What is very important for the public to bear in mind is that the new dispensation will require an amendment to current transport laws required to enforce the Cabinet decision. We encourage all role-players and interested parties to make submissions to Parliament and the Gauteng legislature when these laws are tabled for amendment.
Mashatile is ANC chairperson in Gauteng
