The Department presented its budget for 2011/2012 which included bus, taxi and rail allocations, as well as the provincial roads grants and the Public Transport Infrastructure Support to municipalities. The allocation for 2011/12 was R35 billion. The new provincial roads grant had been introduced for 2011/12 and was allocated specifically for the maintenance of roads.
Job creation for 2011 was estimated at 155 057. All funds had to be used according to major conditions of the 2011 Division of Revenue Framework. The Department’s achievements were the establishment of the Public Transport Integration Committees in all provinces, the scrapping of 5 758 vehicles and the appointment of a team of transport specialists for the Integrated Public Transport Networks. One of the major priorities for 2011/12 was to have the Integrated Rapid Public Transport Network rolled out to five cities, including rural districts.
Members wanted more provincial and municipal-specific information, especially regarding the allocations for public transport in rural areas. They were concerned about the lack of scholar transport across the country and said the Department should step in to try and resolve this crisis. Members said that they would have liked the Department to include more information about maritime and aviation in the presentation. The mismanagement of funds was concerning and Members asked what types of measures were being put in place to stop funds from being spent poorly. Members suggested that the transportation of goods by truck be reduced by including the railway system; this would lower the impact of damage on the roads.
Members wanted to know why the taxi recapitalisation programme was taking so long and also said that introduction of toll roads in South Africa’s major cities was not a good idea. A Member from the
Department of Transport: presentation
Mr George Mahlalela, Director General, Department of Transport, presented the Department’s budget for 2011, as well as related programmes. He gave the budget allocations per major allocation, which included the Public Transport Infrastructure Support (PTIS) to municipalities and the allocations to bus, rail and taxi programmes. Overall, the allocation for the 2011/12 financial year was R35 billion, which amounted to 38.73% of the Medium Term Expenditure Framework (MTEF) expenditure. With regards to the roads and roads grants, growth within the South African National Roads Agency Limited (SANRAL) network had increased from approximately 18% to 25% over the previous years. However, this percentage would decrease in the coming years up to 2014, as more funds would be going into the maintenance and rehabilitation of roads.
Mr Mahlalela explained that the New Provincial roads grant, which had been included in the Department of Transport budget from 2011/12, had an allocation of R6.4 billion. This amount was specified for maintenance of road networks, as the Department had realised the importance of road maintenance, and the Minister had made an announcement two months ago to address this need. The Department had also allocated provincial roads grants for the purpose of the coal haulage networks for
Major conditions of the 2011 Division of Revenue Framework were that:
Provincial departments must submit quarterly infrastructure reports to the national Department of Transport that complied with the infrastructure reporting model toolkit.
A final list of projects must be captured on the Infrastructure Reporting Model and submitted to the relevant provincial Treasury and Department of Transport by 02 April 2011.
A detailed Asset Management Plan, which was compliant with the requirements of the Government Immovable Asset Management Act (2007) and based on the Road Asset Management System, must be submitted by 31 August 2011 to the Department of Transport and to National Treasury by 30 November.
The payment of the instalments of this grant was dependent on receipt by the Department of Transport of the quarterly performance reports.
Expenditure of this grant must be in accordance with the maintenance requirements as identified by a road asset management system.
Provinces must submit Road Asset Management Systems priority projects in the form of a User Asset Management Plan by 30 November 2011.
Mr Mahlalela continued by explaining the Public Transport Operations grant growth, specifically growth related to the bus service. Growth over the past few years had been steady, but in 2009/10 an unusual upward trend in growth occurred, whereby it increased from 5.2% to 18.4%. This was because an old system was used based on how many tickets were being sold. The expected growth for the 2011/12 financial year was 7.5% and was expected to level out in upcoming years.
Mr Mahlalela then presented the rollout of the Provincial Roads Maintenance Programme. The Road Infrastructure Strategic Framework for South Africa (RISFSA) was part of this programme. The RISFSA was a framework developed by the Department to identify the key challenges and focus areas of roads management in
The extent of the road network in
The Provincial Roads Maintenance Grant (PRMG) had been allocated to all provinces as part of the S’hamba Sonke programme. R22 billion had been allocated over the next three years. This programme was adopted by the transport Ministers and Members of the Executive Council (MINMEC) on 02 February 2011. S’hamba Sonke loosely translated meant “We are moving together” or “We are moving together in step”. The programme’s thrust was to focus on a few key actions whose achievements would represent a turnaround in the sector outlined in key programme components.
A key programme component was to increase investment in the maintenance of key arterial routes to support the rural economy. This would be achieved by having provincial roads identified, collecting key data on such roads, and outlining methods of implementation that unbundled contracts to create opportunities for emerging contractors and local labour. Another key programme component was to improve access to schools, clinics and other public facilities. The key actions involved in this component were to have provinces itemise backlogs and progress, and to submit business plans that responded to job creation.
Mr Mahlalela highlighted that all the funds would be implemented according to the Division of Revenue Act 2011. The purpose was to supplement provincial road investments and support preventative, routine and emergency maintenance on provincial road networks and ensure that provinces implemented and maintained road asset management systems. The outputs included an improvement in the percentage of roads in a poor to very poor condition and the stabilisation of roads in a better condition (very good, good and fair). There was a commitment to creating 70 000 Full-time Equivalent (FTE) jobs on maintenance, construction and rehabilitation of roads. Traffic volumes and pavement conditions data would be updated, as well as road asset management systems. One of the grant conditions was that there should be adherence to the Infrastructure Delivery Management Toolkit. This toolkit would ensure that the correct maintenance standards were being used.
Mr Mahlalela gave the targets for job creation, with a total of 155 057 jobs to be created in 2011. From this amount, 68 765 would be FTE jobs. The expected outputs from provinces indicated the number of projects submitted as part of the S’hamba Sonke programme, the number of existing projects rolled over, and the value of projects as per the PRMG.
Some of the achievements for 2010/11 as per planned objectives were the establishment and revival of Public Transport Integration Committees (PTICs) in all provinces to oversee and drive the phased implementation of new subsidised service contracts. As a result of the 37% increase in the subsidy allocation in 2010/11, the PTIC in the
The Department achieved another objective by appointing a team of transport specialists to assist in developing the necessary strategies and frameworks to align the current bus subsidy process, paid through the Public Transport Operations Grant (PTOG), with provisions of the Public Transport Strategy in preparation for the roll out of the Integrated Public Transport Networks. The Department had a scrapping target of 8 758 vehicles, and of this amount 5 758 were scrapped. The delay was due to access of funding, the cost of the preferred vehicle (
The priorities for 2011/12 included having Integrated Rapid Public Transport Networks (IRPTNs) rolled out in five cities by developing 300km of trunk Bus Rapid Transit (BRT) by 2014 and empowering the industry through cooperatives. Five cities had developed Network Operational plans. A priority was to also develop IRPTNs in rural districts. The last priority for 2011/12 was to have effective regulation of transport operations. The objective was to establish the National Transport Regulator, Provincial Regulatory Entities and build municipal capacity by 2014. These would be established based on the Operating Licences Board and the Provincial Taxi Registrars in all provinces.
Mr H Groenewald (
Mr Mathabatha Mokonyama, Deputy Director General: Public Transport, Department of Transport, agreed that the scrapping programme should have come to an end. There were some reasons why it had gone slowly, such as the recession and the cost of new
Ms M Themba (
Mr Mokonyama replied that the Department would do so in future presentations. This presentation focused on the overall budget and did not show specific municipalities within provinces.
Mr M Jacobs (
Mr Mokonyama said that the Department would try to shy away from using acronyms in the future; most were explained throughout the presentation and those not explained were those it assumed Members were aware of.
The Chairperson (
Mr Mahlalela replied that it was for the preparation of the budget vote.
Mr Groenewald said that the condition of roads in
Mr Mahlalela replied that provinces were being monitored by a project performance management unit, which would oversee the usage of funds. This performance unit would also ensure that proper standards were adhered to with the fixing of potholes.
Ms Themba asked whether a final list of projects, as referred to on slide 8, had been completed.
Mr Mahlalela replied that indeed, all provinces had submitted their business plans and projects, as well as figures of jobs that would be created.
Mr Jacobs asked what FTE (Full-Time Equivalent) meant.
Mr Mokonyama replied that FTE employment was projects related to the Extended Public Works Programme (EPWP) and jobs were for over 12 months. These were not permanent but rather related to maintenance and rehabilitation projects.
The Chairperson said that because the Select Committee had a say in the final decision of the budget vote, he was disappointed to see such a small amount of people from the Department attending the meeting.
Mr Groenewald said that there were numerous trucks on the road. The roads were not built to carry such heavy loads. He suggested that an alternative would be to make more use of the railway systems in
Mr Mahlalela replied that the Department had been looking at the usage of rail for the transportation of cargo. The rail system in
Ms Themba wanted more information on the Public Transport Integration Committees (slide 10). She wanted to know who served on these committees and to whom these committees reported. She agreed with Mr Jacobs that the presentation contained too many acronyms.
Mr Mokonyama replied that these committees were set up by the provincial departments and municipalities. They made the needed decisions as to where funds would be allocated.
Mr Jacobs wanted to know how many buildings the Department was renting or had bought.
Mr Mahlalela replied that the national Department was renting only one building in
The Chairperson wanted more information about the
Mr Mahlalela said that he would submit the information as requested.
Mr Groenewald said that the idea of creating toll-roads in the major cities across the country was not a good idea. Vehicle owners would not agree with having these toll-roads implemented as they already had to pay road taxes and fuel levies.
Ms Themba wanted to know the meaning of “unproclaimed roads” as shown on slide 15. She asked what happened to these roads which were unproclaimed.
Mr Mokonyama replied that these roads were mostly footpaths, routes and streets created by people. There were currently approximately 140 000km of unproclaimed roads, but gradually proclamation happened.
Mr Jacobs asked whether the Department was involved in providing scholar transport, and if so, to which provinces.
Mr Mokonyama replied that five provinces were currently given scholar transport by the Department of Basic Education.
The Chairperson asked the Department to explain more about the Gautrain project and how far planning was.
Mr Mahlalela replied that the route between
Mr Groenewald commented that the Department needed to step in more firmly to take over the scholar transport policy; the Department of Basic Education should not be the custodians.
Mr Mahlalela agreed that the Department needed proper engagement with the Department of Basic Education. Scholar transport was heavily under funded and there was massive institutional confusion. The problem also lay with the funding model that was being used, as funding was currently being calculated with the Department of Basic Education’s funding model.
Ms Themba asked whether the 70 000 jobs to be created included women, youth and people with disabilities.
Mr Mahlalela replied that indeed women, youth and the disabled were all included in the detailed breakdown of jobs created from provinces.
Mr Z Mlenzana (
The Chairperson wanted to know whether maritime and aviation also belonged to the provincial departments, as these entities were not included in the presentation.
Mr Mahlalela said that the Airports Company of South Africa (ACSA) airports did not include provincial airports. Maritime needed to be developed as
The Chairperson asked the Department to take note of the alleged mismanagement of funds in the
The meeting was adjourned.
- We don't have attendance info for this committee meeting
Download as PDF
You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.
See detailed instructions for your browser here.