Question NW1846 to the Minister of Transport
14 September 2020 - NW1846
Nolutshungu, Ms N to ask the Minister of Transport
(1) In view of his indication that plans for theformalisation of the taxi industry are at an advanced stage, what are the reevant details of the specified plan: (2)whether the plan includes (a) a subsidy for the ordinary taxi operator (b) minibus-taxis in the Integrated Rapid Public Transport Network of each town; if not, why not, in each case; if so, what are the relevant details in each case?
Reply:
1. formalisation in this context means that operators in the taxi industry would have to operate as registered businesses in the formal economy and comply with all regulatory requirements for operating a business. The Department is planning a National Taxi Lekgotlaat the end of October 2020, which will provide a platform to all stakeholders to start engaging on issues affecting the taxi industry includingformalisation. The Department launched a Public Discourse Platform on Thursday, 20th August 2020 where civil society is provided with an opportunity to make inputs on these matters.
(2) whether the plan includes
(a) a subsidy for the ordinary taxi operator
Subsidy is for the end user and therefore subsidy for the taxi industry would be looking assist the end user and not necessarily the taxi operator;
(b) minibus-taxis in the Integrated Rapid Public Transport Network of each town; if not, why not, in each case; if so, what are the relevant details in each case?
Public transport subsidisation is implemented in response to a wide range of transport objectives but mainly to make transport services affordable and accessible to the user. Direct operational subsidy applies exclusively to formalised public transport services through contracting. Therefore formalization is critical for the taxi industry to participate in the integrated public transport networks implemented in different cities, where each mode plays its role in terms of the IPTN plans including minibus taxis.
NW2242E