Question NW1815 to the Minister of Transport

Reply:

The Department of Roads and Transport in Gauteng are the custodians of the subsidised contracts with the Public Utility Transport Company (PUTCO). There are 34 subsidised bus contracts in Gauteng and 7 of these belongs to PUTCO. However, all bus contracts in Gauteng have reached the end of their contract life, some as far back as 2003, but due to lack of sufficient funds these contracts have not been renewed but are being extended on a short-term basis. This is a problem that is not only confined to Gauteng but apply nationally. There are 108 subsidised bus contracts across all provinces and all have reached the end of their contract life and have also been extended on a short-term basis. The continued extension of subsidised bus contracts is simply to ensure that there is no total collapse of services in the country whilst government is in the process of resolving this matter. There are ongoing discussions between the Department and National Treasury exploring various options for implementing a sustainable public transport funding model which includes the development of a subsidy policy.