Question NW420 to the Minister of Transport

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10 March 2016 - NW420

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Transport

Whether, with regard to the bus rapid transit system in the City of Tshwane, any consultations and/or negotiations have taken place with the various taxi associations operating in the area; if not, why not; if so, (a) in what form did the consultations and/or negotiations take place, (b) on what dates, (c) which taxi routes were covered and (d) what were the outcomes of the specified consultations and/or negotiations in each case?

Reply:

The legal basis, background and motivation for these payments are set out below:

a. Compensation payments to the taxi industry or any other public transport operator affected by the introduction of BRT Services, are based on provisions of Section 41(1)(a) of the National Land Transport Act 5 of 2009 (NLTA). Such compensation is for the loss of business rights when the affected operators’ services are terminated and replaced by the BRT systems. The implication of the current Compensation Agreement is that regardless how long the dispensation will last, it will not increase the eventual total agreed compensation cost. It is therefore merely a re-arrangement of the timing of compensation payments. The target date for the last Permanent Compensation Agreement is no later than the second quarter of 2016.

A Memorandum of Agreement (MoA) was signed with the Taxi Industry during May 2013. The MOA provided for a structured approach with regards to engagements with the affected taxi industry.

The negotiations were undertaken with the affected taxi operators per implementation phase, in conjuction with the broader taxi representative structures to ensure peaceful engagements and to avoid the emergence of splinter groups due to lack of proper information dissemination within a volumenous industry such as the taxi industry. This approach proved to be effective in that even those operators that are not affected became fully conversant with the implementation of the BRT within their area of operation.

b & c

The affected taxi operators were all identified on the proposed BRT line and are being engaged in line with each implementation phase as approved by Council. The City of Tshwane implemented their Phase 1A between the Pretoria CBD and Hatfield during November 2014 and identified 3 taxi associations operating along that route. Compensation negotiations were finalised and agreement was with affected operators from the 3 taxi associations. Negotiations have commenced with an additional 3 taxi associations affected by the planned implementation of Phase 2A. It is envisaged that agreements will be concluded with the affected taxi operators from the 3 associations.

d. An interim compensation package was agreed in November for Phase 1a to Hatfield. The compensation negotiation for Phase 2a to Wonderboom is currently underway and is expected to conclude before the end of March 2016

NW433E

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