Hansard: NA: Mini-plenary 1

House: National Assembly

Date of Meeting: 21 May 2021

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Minutes

UNREVISED HANSARD

MINI PLENARY - NATIONAL ASSEMBLY FRIDAY, 21 MAY 2021

Watch video here: Vote No 40 – Transport

 

PROCEEDINGS OF MINI-PLENARY SESSION - NATIONAL ASSEMBLY

 

Members of the mini-plenary session met on the virtual platform at 10:00

 

The House Chairperson Mr C T Frolick took the Chair and requested members to observe a moment of silence for prayer or meditation. The Chairperson announced that the virtual mini- plenary sitting constituted a meeting of the National Assembly.

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon members, before we proceed, I would like to remind you that the virtual mini- plenary is deemed to be in the precinct of Parliament, and constitute a meeting of the National Assembly for debating purposes only. In addition to the Rules of virtual sittings, the Rules of the National Assembly including the Rules of the debate applies.

 

Members enjoys the same powers and privileges that apply in a sitting of the National Assembly. Members should equally note that anything said in the virtual platform, is deemed said in the House, and may be ruled upon. All members who have logged in, shall be considered to be present, and I will request them to mute their microphones, and unmute when recognised to speak. This is because the mics are very sensitive, and might pick up noise which is very disturbing to the attention of other members.

 

 

When recognised to speak, please unmute your microphone and connect your video. Members may make use of the icons on the bar and bottom of their screens, which is an option that allows a member to put up his or her hand to raise a point of order. The secretariat will assist in this regard. When using the virtual system, members are urged or refrain from unnecessary points of order. We shall now proceed with the order, which is the debate on Vo No 40, Transport Appropriation Bill. I now recognise the hon Minister of Transport.

 

 

APPROPRIATION BILL

 

Debate on Vote No 40 – Transport:

 

 

The MINISTER OF TRANSPORT: Hon House Chairperson, hon Deputy Minister, Mme Dikeledi Magadzi, hon Members of Parliament, fellow South Africans, I start by sending special condolences to the National Taxi Association, for the passing on of Mr Dumisani Mpanza, who happened to be a Treasurer of the National Taxi Association. We send our deepest condolences to his family, and the entire taxi industry. He will be laid to rest this coming weekend, and yesterday we had his memorial service. May His Soul Rest in Peace.

 

 

We also pass our condolences to those who perished and died, as we fight the COVID-19 pandemic. We also send our deepest condolences to the families who are burying their loved ones everyday as a result of COVID-19. As we grapple and continue with the effects of the COVID-19 pandemic on the economy and its disruptive effect on life as we know it, we are determined to accelerate economic recovery interventions. The transport sector has not escaped the devastation of the pandemic and many of our people have been left unemployed or struggling to make ends meet, in its wake.

 

Despite the odds, our people have remained resilient and hopeful that our collective efforts will sufficiently re- ignite the economy in order for them to put bread on the table to feed their families. Sustainable economic reconstruction and recovery interventions that support sustainable livelihoods and create new opportunities, is a singular commitment that gives impetus to our interventions. Our collective obligation to each other, means that we each have a role to play in uplifting each other.

 

 

Our efforts to arrest the carnage on the road can only succeed if road users change their behaviour and appreciate that others have as much right to use the infrastructure freely, without a threat to their lives and livelihoods. It also means that those who receive benefits from the public purse, have a duty to make a positive contribution to the lives of others.

We are therefore committed that the economic recovery and expansion potential of investing in the transport sector has to be harnessed in a targeted and highly catalytic ways.

 

 

In order to truly live up to its designation as a network industry, transport must activate multiple overlapping networks of economic activity. In this regard, transport in

 

South Africa is central to trade, economic, social stability and unwinding apartheid spatial planning. In our 2021-22 budget, expenditure is expected to increase at an average annual rate of 8.1%, from R57,3 billion in 2021 to R72.5 billion in 2023-24.

 

 

Although the substantial share of the department’s expenditure is directed towards rail infrastructure, maintenance, operations and inventories, the balance of the budget is reserved for the SA National Roads Agency, SANRAL, for the upgrading and maintenance of the national road network, as well as provinces and municipalities for the construction, operations and maintenance of transport infrastructure and services. To remain within government’s ceiling for compensation of employees, spending on this item decreases at an average annual rate of 0.3%, from R536,8 million in 2020-21 to R531,5 million in 2023-24.

 

 

Spending on goods and services is expected to increase at an average annual rate of 2,3% from R849 million in 2021 to R909,7 million in 2023-24. The allocation to the Civil Aviation programme is expected to decrease at an average annual rate of 50,8%, from R2,7 billion in 2020-21 to

 

R319,2 million in 2023-24 due to the capitalisation of Airports Company SA, ACSA, which needed support due to travel restrictions as a result of the COVID-19 pandemic in the 2020-

21 financial year. We continue to make strides in giving effect to our industrial policy, by positioning South Africa as a continental manufacturing hub for rolling stock.

 

 

The Gibela factory in Ekurhuleni continues to ramp up its production capacity as new trains roll off the assembly line every month. Despite the COVID-19 disruptions, as at March 2021, 25 new trains had been provisionally accepted for delivery. This brings the total number of new trains delivered to date to 61. As at end of February 2021, a total of 878 jobs were created in the Rolling Stock Fleet Renewal Programme.

Chairperson, as we committed to returning to service our rail operations, which were largely interrupted by the total shutdown, we have identified the following corridors as priority corridors for service recovery this financial year.

 

 

We have heard the cries of our people about the lack of service and indeed we concur that it affects the pockets of the working class and the poorest of the poor. In Gauteng, we have prioritised seven, Mabopane, Leralla, Naledi,

 

Pienaarspoort, Saulsville, Pretoria and Daveyton to Johannesburg. In the Western Cape, we have prioritised, Cape Town to Cape Flats, Cape Town to Simonstown and Cape Town to Khayelitsha and Kaapteinsklip.

 

 

In KwaZulu-Natal, we have prioritised Crossmoor Line, Kelso Line, KwaMashu and Umlazi. In the Eastern Cape, we have prioritised East London to Berlin. For the Mainline Passenger Services, we have prioritised Johannesburg to Cape Town, Johannesburg to Gqeberha, Johannesburg to East London, Johannesburg to Komatipoort, Johannesburg to Musina, Cape Town to East London, Johannesburg to Durban. The impact of the COVID-19 restrictions exposed the vulnerability of our network, to criminality and vandalism.

 

 

Vandalism was taking place, but grew exponentially and into higher proportions, as a result of a total shutdown, and the network being exposed at this sort of criminality, resulting in occupation of the rail reserve by people who built illegal settlements, particularly in Cape Town. This was further exacerbated by the wanton destruction, theft and vandalism of our infrastructure. All hands are now on deck, working tirelessly to return to service passenger rail operations. Our

 

security interventions, which are a product of collaboration with our law enforcement and intelligence authorities are bearing fruit.

 

 

On the Central Line in Cape Town, work is underway to upgrade infrastructure to enable the deployment of the new trains.

Earlier this year, we resumed a limited service, but remain hamstrung by the settlements on the rail line and reserve. We have been working tirelessly with the Ministers of Human Settlements as well as Public Works and Infrastructure, the Western Cape Provincial Government and the City of Cape Town to resettle the people on the reserve. We are confident that we will achieve the resettlement soon in order to complete the infrastructure upgrades and restore the rail service.

 

 

Notwithstanding the challenges in this corridor, we are working round the clock to ensure that all infrastructure projects are completed on time for the full resumption of service, with the deployment of the new trains at the end of January 2022. On the Mabopane corridor, infrastructure upgrades are also underway. The completion of Phase 1 of the upgrades will enable the resumption of a limited service at

 

the end of November 2021. The resumption of the full service is planned for early December 2021.

 

 

Transfers to the Passenger Rail Agency of SA, PRASA, amount to R57 billion, accounting for an estimated 27,2% of the department’s budget over the medium-term. Delays in the rolling stock fleet renewal programme, along with poor spending on rail infrastructure and the effects of the COVID-

19 pandemic, specifically lockdown restrictions, necessitated the reprioritisation of funds to support other transport sector entities. As such, PRASA received no transfers from the department in 2020-21 for the signalling and rolling stock renewal programme.

 

 

The reprioritisation included a R2,3 billion, capitalisation of ACSA and the R1,1 billion once-off gratuity to the taxi industry in 2020-21. Over the medium-term, capital transfers to PRASA are expected to increase at an average annual rate 164,3%, from R700 million in 2020-21 to R12,9 billion in 2023-

24. To offset revenue loss during the COVID-19 lockdown, operational transfers were temporarily increased in 2020-21, accommodated by reductions to capital budgets. However, as they normalise over the medium-term, operational transfers to

 

PRASA are expected to decrease at an average annual rate of 5%, from R8,8 billion in 2020-21 to R7,5 billion in 2023-24.

 

 

Chairperson, in our Performance Agreement with the President, we committed to reducing the carnage on our roads by 25% by March 2024. We have been emphatic that we cannot continue to attempt to solve old problems by employing the same tactics that have not worked in the past. It is on that basis that we have sought innovative ways to tackle the intractable challenge of wayward conduct of motorists. We have previously reflected on our plans to change traffic policing from a regular job to one that is undertaken 24 hours a day and seven days a week.

 

 

We have made significant progress in this regard, and we have finalised all consultations with provinces, law enforcement authorities, as well as organised labour. The outstanding step is for each Provincial Executive Council to approve this determination, which will pave the way for the Minister of Public Service and Administration to place the matter before the General Public Service Bargaining Council.

 

We recently pronounced our intention to introduce body cameras as a new standard to reinforce traffic policing. The use of this technology will go a long way in gathering evidence on the interaction between the officers and motorists. This will undoubtedly improve the conviction rate of motorists who break the law, and deal a death knell to corruption. Our collective commitment to arrest the carnage on our roads and save life and limb must be supported by all of us. As part of strengthening the traffic management value chain, guided by the Constitution, we have started a process of looking into the possibility of streamlining and rationalising our traffic entities.

 

 

This includes reviewing founding laws of some of these entities to ascertain areas of duplication, drivers of inefficiency and areas that require streamlining. To that effect, we are looking at the mandates of the Road Traffic Management Corporation, RTMC, the Road Traffic Infringement Agency, RTIA, and the Driving Licence Card Account, DLCA, trading entity. Closely aligned to this is the review of the service delivery model of driver and vehicle licencing.

 

We have been paying particular attention to the challenges confronting Driving Licence Testing Centres (DLTCs) across the country, and the impact these have on the livelihoods of those who require these services to put bread on the table. We have taken heed of the plethora of complaints by members of the public, civil society and political parties and we are taking decisive action to address the issues raised. The end-game of our interventions is improved service delivery and enhanced efficiency in the functioning of DLTCs, free of corruption.

 

 

We have engaged as the three spheres of government, and have agreed on a range of measures that will address the most pressing challenges relating to driver and vehicle licensing, and the packages of these changes will be unveiled in the next coming month, as we implement brick by brick, the improvement in terms of sectors of driving licence in the country. These include longer operating hours, use of technology to eliminate queues and the introduction of an online interface for optometrist and medical practitioners to upload on the eNatis the eye test results.

 

 

This is part of a process to allow motorists to employ the services of an optometrist of their own choice for eye tests.

 

We have previously made a commitment to the rollout of the Administrative Adjudication of Road Traffic Offences, AARTO, Act of 1998, bolstered by the AARTO Amendment Act which was signed into law by the President on 13 August 2019. Over the medium-term, we have allocated to the Road Traffic Infringement Agency, RTIA, R545 million to fund the rollout. About R215 million has been allocated for the current financial year.

 

 

We are on track with our target to proclaim 1 July 2021 as the effective date for the nationwide rollout of AARTO. Chairperson, there is a symbiotic relationship between the carnage on our roads and the state of health of the Road Accident Fund, RAF. Despite this, there has not been a nexus between the fuel levy and the number of accidents that occur on public roads. However, to exacerbate this challenge, is the ever-increasing administrative costs of the RAF scheme. The RAF has operated on a financially unsustainable model for a number of decades.

 

 

The long-term liabilities of the fund are now government’s largest contingent liability. In recent years, the fund has also experienced liquidity challenges as claims against the

 

fund has outpaced the growth in the RAF levy. Claims against the fund have increased at an average annual rate of 8,4%, from R61,3 billion in 2017-18 to R78,2 billion in 2020-21, and are expected to increase to R102,9 billion by 2023-24. As a result, the accumulated deficit is expected to increase to R519,9 billion in 2023-24. The other biggest cost drivers for RAF are legal fees that the entity has to settle, both in terms of its own legal cost and those of the claimants.

 

 

The current COVID-19 disruptions are expected worsen the liquidity of the RAF. It is expected that this impact will extend to the 2021-22 and 2022-23 financial years. Although the lockdown levels resulted in revenue loss, this has narrowed to an expected R5 billion for the year ending on 31 March 2021. The most significant change going into the 2021-22 financial year, is the new RAF Operating Model. The Operating Model represents a new approach to the investigation, settlement and litigation of claims.

 

 

The grant provides funding for infrastructure and indirect costs of operating bus rapid transit, BRT, systems, in Johannesburg, Tshwane, and Nelson Mandela Bay. In these cities, funding from the grant is expected to lead to a

 

combined increase in the number of BRT weekday passenger trips. If we are to achieve a 3-shift economy that celebrates our economic recovery, public transport must be responsive to the needs of the workers. This year we will gazette final amendments to the Integrated Fare System Regulations.

 

 

The first rollout of the integrated single ticket will unfold during the course of this year. In the last year, we hosted a successful Taxi Indaba, and we have agreed on the implementation, of formalisation, of ensuring, of professionalising, and at the same time, we have arrived at a decision to subsidise the taxi industry. We are on track with regards to that, working with everybody on board. Chairperson, we are pleased to announce that we have made considerable progress on the appointment of Boards of Directors and Chief Executive Officers in our entities.

 

 

We have appointed Chief Executive Officers for the Road Accident Fund, Ports Regulator, PRASA, as well as ACSA. We are in the process of finalising the Air Traffic Navigation Services, ATNS. Chairperson, to date more than R7 billion has been invested in Marine Transport and Manufacturing. In the coming months, we will be hosting a round table discussion on

 

how to create a conducive tax regime to grow South Africa’s ship registry. The department is intensifying its efforts towards the implementation.

 

 

The aviation sector has been severely affected by COVID-19, and in recent months, Singapore has announced that it will accept visitors who use a mobile travel passes containing digital certificates for COVID-19 tests and vaccines. These are some of the things we will be looking at, going forward. This particular initiative was successfully tested by Singapore Airlines, and more than 20 carriers. We need to work with the industry to ensure that we place South Africa on a new growth path by making use of opportunities presented by technology and ensure that South African joins the growing number of countries that accepts the International Air Transport Association, IATA, mobile travel pass. Thank you, Chairperson.

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Thank you hon Minister, you have saved five minutes of your time, and we will add it at the end of this debate.

 

Mr L N MANGCU: House Chairperson, thank you very much. Good morning to the Minister, the Deputy Minister, all members of the executive, members of the portfolio committee and fellow South Africans. It is a singular honour to me to present this report on behalf of the Portfolio Committee on Transport. This Budget Vote occurs under very difficult circumstances as all modes of transport have been and continue to be negatively affected by the coronavirus disease 2019, Covid-19, pandemic and the unintended consequences of the imposition of the Disaster Management Act. With the gradual easing of transport restrictions and restrictions of lockdown, the transport sector has begun to make a slow recovery despite the challenges.

 

 

House Chairperson, the Portfolio Committee on Transport considered the 2021-22 budget of the Department of Transport. The committee was briefed with its department revised strategic plan, annual performance plan and budget allocations for the department and some of its entities. The committee further engaged with ten of the department’s entities, and due to time, three of them we couldn’t engaged with. However, we are pleased to announce that all the entities we received their strategic plans and annual performance plans, APPs.

 

Therefore, for that we want to commend the Minister and team transport for this achievement as this has always been a challenge in the past.

 

 

The report before the House, House Chairperson, details an overview of the performance of the department during 2020-21 financial year, policy priorities in 2021-22, and how they are aligned with national, regional, continental and global developmental agendas. It also analyses the 2021-22 budgets of the department and its entities. The report further covers the tabled 2021-22 strategic plans and the APPs of the entities.

 

 

House Chairperson and hon members, the committee met with 10 of the 13 entities with the exclusions of Air Traffic and Navigation Services, the Ports Regulator of South Africa and SA Civil Aviation Authority. We have noted as a committee that the department is structured into seven programmes that are intended to discharge its mandate and we commend the department on that. We have also as a committee received a report and noted that the department has identified eight areas that it has prioritised in the 2021-22 financial year, in response to the Medium-Term Strategic Framework, MTSF, 2019 to 2024. There are the following: Safety as an enabler of

 

service delivery; public transport that enables social emancipation and an economy that works; infrastructure build that stimulates economic growth and job creation; building a maritime nation, elevating the oceans economy; accelerating transformation towards greater economic participation; innovation that advances efficiencies; and environmental protection; last but not least governance.

 

 

House Chairperson and hon members, one of the stubborn remnants of apartheid remains the separate development policy which is still evident in the apartheid spatial planning which is still evident in our areas. We are pleased by the Minister’s announcement that they are working in co-operation with the Department of Infrastructure and Human Settlements.

We are also encouraged as a committee that the department is giving impetus to priority number four of the government 2019 to 2024 MTSF which is spatial integration, human settlements and local government.

 

 

House Chairperson and hon members, there is much work to be done and much still need to be achieved to ensure that the transport sector positively contributes to the Economic Reconstruction and Recovery Plan. Over the recent past, as

 

already alluded to by the hon Minister, there has seen the destruction of infrastructure of a particular concern is rail infrastructure and we have also seen a destruction or deterioration of the road infrastructure. The current economic plan is also based on infrastructure development and this provides opportunities for the next level of development of the transport sector.

 

 

House Chairperson and hon members, the transport sector contributes some 6,5% to gross domestic product, GDP, which is as it is an underperforming sector. With improved transport infrastructure the contribution of the transport sector can contribute significantly more to the GDP, because transport serves also major areas of the economy which makes its indirect contribution to GDP much higher than its direct contribution. The transport infrastructure development must positively contribute to the industrialisation and job creation as part of the Economic Reconstruction and Recovery Plan. The efficiency of our economy is dependent on the efficient functioning of the transport sector. Therefore, transport infrastructure development is key and the departmental programmes and its entities need to deliver this result.

 

The Minister has alluded to the budget as presented. However, as a committee we would like to note the average annual rate increase of 8,1% from 2020-21 to 2022-24. Although the substantial share of the department’s expenditure is directed towards rail infrastructure, maintenance, operations and inventories, the balance of the budget is reserved for the SA National Roads Agency, Sanral, for the upgrading on maintenance of the national road network. Over the MTEF we have noted transfers account to an approximately 97% which the Minister has already alluded to. The core focus for the department over this MTEF period with regard to roads is the Moloto Road development corridor, which is allocated

R2,7 billion transfers to fund reduced tariffs from the Gauteng Freeway Improvement Project, GFIP, which we remain very concern and we call on the Minister and the department to make the decision on GFIP. We have despite numerous promises and remains concerned that a decision is not yet announced on the future of GFIP, commonly known as e-tolls.

 

 

Transfers to the Passenger Rail Agency of South Africa, Prasa, in the rail transport programme account to an estimated of 27,2% of the department’s budget, which is quite a significant budget. However, House Chairperson and hon members, the agency

 

has struggled for many years to deliver on its modernisation programme, which is meant to improve the reliability of services to the poorest of the poor, and employ we and plead with the Minister and the new board and the chief executive officer, CEO, to make focus on this area. The committee has noted and welcomes the recent appointment of the new board members, in particular Prasa and its group chief executive officer. We look forward to improvements at that agency and we will monitor with Hawks eyes.

 

 

Efficient public transports are important to keep economic hubs functioning optimally. The department needs to ensure that it fills, as we have noted, its vacancies. There’s a high vacancy rates and we employ the department in this year to make sure that it fills the positions. During the committee’s interaction with its entities, Minister, we would like to note that the SA Maritime Safety Authority, Samsa, and the Road Traffic Infringement Agency, RTIA, we were appalled at the level of unpreparedness for the engagement. Acting officials in these entities seemed to have no clue to say the least. In the case of Road Traffic Infringement Agency, it is at a time when we were informed there it has newly appointed board which we welcome. We are concerned, however, that if these are the

 

right people to take the department forward in terms of your rollout of the Administration Adjudication of Road Traffic Offences, AARTO.

 

 

House Chairperson and hon members, we have observed as a committee that the department is moving in the right direction and we applaud the Minister and the team. We also noted the increase in the budget of maintenance of rural roads of which we commend. The committee noted also the improved alignment between the department its entity performance targets which has not always been there.

 

 

Lastly, House Chairperson, I would like to extend our appreciation as a committee to our support team at the Portfolio Committee on Transport, researchers and everybody for the sterling work they’ve done for the committee. We thank the Minister, Deputy Minister and team transport for all the support and all the effort in bringing us to where we are. The road is still long ahead, but the road is clear. Thank very much to the committee members for all the support across political lines. House Chairperson, thank you very much.

Therefore, on behalf of the committee I submit this report for

 

consideration and approval of this mini-plenary. Thank you, House Chairperson.

 

 

Mr C H H HUNSINGER: House Chair, tabling this 2021 Budget Vote provides a significant opportunity to evaluate the ANC’s government management of Transport, and how far delivery has advanced towards the achievement of the National Development Plan goals in 2030. The ANC visualised and promised, “Sustainability”, “Inclusive growth”, “A functioning economy”, “Infrastructure” and, “Support”, to mention a view.

 

 

Fifteen chapters of the NDP expressed Transport’s stake in this commitment and expressed its participation with phrases like, “Extended public transport services”, “Linked high volume corridors”, “Integrated effective services”, “Maximized economies of scale”, “Co-ordinated planning and management progressions”, “Refined functions and perfected decision- making processes” and “Commuter-friendly experiences”, as some examples.

 

 

Instead of reflecting completion stages of the last NDP implementation phases in the 2021-22 financial year - the Department of Transport’s, DoT’s, priorities - the eight key

 

areas of focus show little evidence of this. Instead, the department is working on stuffing chairs with: Little forthcoming from many offices; filled staff-vehicle parking bays; with hardly any inspection trips;   noiseless workshops with barely any spares on shelves; consultants banging on their doors for payment; claims; suspensions; and labour-law litigations and other court cases – instead of serving civic needs.

 

 

In reports and presentations, we note 100% of targets achieved, 100% of budget spent. This, only to justify the 100% performance bonus and merit rewards to benefit ‘the chosen view’, all financed with citizen taxes. Worst of the chosen view: Those that enjoy a full salary, with benefits, while being on suspension. This, while: Rows of busses, railway tracks and coaches are overgrown by weeds; lives are lost and destroyed because of potholes; 94% of our exports are done by foreign ships; and millions are left with no other choice, other than one - or no form of public transport.

 

 

A mere nine years before delivery on the NDP outcomes, the DoT’s eight areas of priority reflect the failure to establish safety, economic growth, and governance - let alone

 

achievement of this widely supported emancipation plan to reduce poverty and eliminate inequality. For the first time the word ‘corruption’ is mentioned in a Strategic Plan of the Department of Transport. This, because the concepts of ethical conduct, accountability and consequence management never appeared and were deliberately ignored.

 

 

Going forward, one should be alerted to sleaze-manufacturing of, “Reported incidents of corruption”, just to meet this new & very strange target set at 95%. Passenger Rail Agency of South Africa’s, Prasa’s, massive R172 billion plan to modernise our aging trains and infrastructure is hardly continuing, with just one station completed in the last five years out of a planned 135 priority stations.

 

 

At this rate, it will take more than the planned period to finish the work, by which time our systems will be outdated and will have to be replaced again. The department underspent over R300 million in the previous financial year - the biggest component of which was in the Public Transport program as if there are no needs to any of the core mandates, namely, to protect commuters and assets.

 

Why didn't you simply pay someone to fill some potholes? No wonder that after six consecutive financial years under review, the department had been unable to achieve all its annual performance targets, with internal control deficiencies and compliance to legislation being the main debilities.

 

 

Despite continuously presenting action plans in response to annual Auditor-General, AG, audit outcomes, receiving a clean audit has been nothing but a mirage. This implies that the department has not been implementing the recommendations of the AG and has ignored the proposals by the Portfolio Committee on Transport.

 

 

Clean Audits lead to improved operations. I have yet to see the opposite. Under ANC’s control, the NDP failed, with examples like e-Tolls: Where the G-FIP project currently needs R1 billion a year to service the debt repayment, which has escalated from R22 billion and to R40 billion in eight years; while not one South African company - but a foreign-owned- company-          is benefitting as 100% shareholder month by month.

 

 

Five years were wasted on pushing the flawed and wicked Road Accident Benefit Scheme, Rabs scheme, until we defeated it. On

 

average, the Road Accident Fund currently operates at a rate of R9 billion in arrears per month with liabilities increasingly exceeding assets – but to this day, sub- contractors are used to process claims. Nearly every case is opposed – only to settle outside court on the day of judgment.

 

 

Driven by the ANC, Transport holds no promise of arriving anywhere. Instead, budget and control should be placed in the hands of the DA to bring real change and result with progress. I thank you.

 

 

Ms N J NOLUTSHUNGU: Chair, the state of public transportation in this country has completely collapsed, and has been handed over to an uncontrollable and rogue group of people. The collapse of Metrorail services around the country is a clearly calculated campaign, to benefit a few individuals, while millions of South Africans are suffering.

 

 

Why is it that the country has allowed a ... [Interjections.]

 

 

Ms J TSHABALALA: Point of order, Chair! Point of order: hon Tshabalala!

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Nolutshugu, let me just take this point of order: What is your point of order, hon member?

 

 

Ms J TSHABALALA (Point of order): Chair, the member on the podium has got a party logo on the background. This is a mini- plenary of the department, therefore that is not correct and must be corrected before she proceeds. Thank you.

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): Thank you, hon member. Hon Nolutshungu, you heard the point of order. The point of order is sustained. Party logos are not to be displayed during sittings and plenaries. You may proceed ... [Interjections.]

 

 

Ms N J NOLUTSHUNGU: My apologies, Chair! [Interjections.] Sorry!

 

 

The HOUSE CHAIRPERSON (Mr C T Frolick): You may proceed.

 

[Interjections.] It’s fine, thank you!

 

 

Ms N J NOLUTSHUNGU: Why is it that the country has allowed a rail network that transported millions of people to simply collapse like that? What are the real motives of those who are

 

behind the collapse of Metrorail? Who stands to benefit? More importantly, why is it that the Department of Transport has allowed this to happen, and failed to fix it for over two years now?

 

 

Passenger Rail Agency of South Africa, Prasa, has struggled for many years to roll out its modernisation programme, which is meant to improve the reliability of services and increase the number of passengers. The modernisation programme entails focused spending on repairs and maintenance as part of the agency’s rolling stock fleet renewal programme, as well as improved security.

 

 

Of the 290 Prasa’s Rolling Stock Fleet Renewal programme, only

 

23 train sets have been deployed. Due to lack of infrastructure development in terms of modernisation of depots and stations these new trains are only permitted to run on the Pretoria-Pienaarspoort Corridor.

 

 

There has been a reduction in the capital expenditure budget of Prasa. At Prasa, material noncompliance findings were raised on annual financial statements, expenditure management, procurement and contract management, as well as consequence

 

management. Compliance monitoring deficiencies previously reported remained unaddressed.

 

 

The state of road transport is not any better. The taxi industry is in a permanent state of war, with so many people getting killed every year. They have become a law unto themselves, and the Ministry has not come up with a reliable plan to root out all the warlords in the industry, and make this industry an attractive industry for all those who want to be involved in public transportation.

 

 

The taxi industry has also not done anything to cater for passengers with disabilities, nor had it put any measures in place to curb gender-based violence in taxi ranks. This industry does as it pleases because they know that the portfolio is led by a spineless individual, who has no strategic thinking abilities.

 

 

The dire state of public transportation in rural provinces is painful to watch. In provinces like the Eastern Cape, commuters have to rely on hitching hikes from private cars, which poses massive risks for women in particular, because serial rapists may take advantage of this situation.

 

The less said about the Road Accident Fund, RAF, the better! Minister, you have allowed this fund to be looted by legal firms, who pocketed most of the money meant for victims of road accidents. Today, the Road Accident Fund is almost bankrupt, leaving thousands of road victims with nowhere to go. The legal firms that pocketed this money, among which is a legal firm belonging to the Minister of Justice, Ronald Lamola, are smiling all the way to the bank.

 

 

Minister, all the rot that has engulfed this Ministry is deepening because you are either too scared to take action, or you are just clueless about what you need to do to change the situation around.

 

 

To date, you have not resolved the perennial problem of tolling South African roads. It is now clear the tolling of the roads in Gauteng does not work, and will never work. But you have persisted with a clearly dysfunctional approach to road tolling. Are you going to keep on demanding that the people of Gauteng must pay toll fees or not? You must come out clear on this issue, to avoid any confusion.

 

Minister, your department has the responsibility to deliver a safe, reliable, efficient and affordable public transport system. But, if you were to ask any commuter that uses public transport, on whether the public transport of South Africa is reliable or not, they will tell you that: Public transport is not safe; public transport in South Africa is not efficient; the public transport in South Africa is not reliable; the public transport in South Africa is very expensive; and finally, the public transport in South Africa is not universally accessible.

 

 

Under these circumstances, and from your budget, it is clear that this department has no idea what needs to be done. We therefore reject this budget. I thank you.

 

 

Mr K P SITHOLE: House Chairperson, hon members, this Budget report shows serious signs of an absolute disregard for ensuring a safe and developing transport model in South Africa. This Department submits half-baked ideas and a copy- and-paste attitude to the information it provides. The department, in its budget report, obviously does not respect the work of Parliament, as it is clear that the submission of these reports are not intended to improve the country’s

 

transport model but rather, just to see how much money it can get from the public purse.

 

 

The Budget of this department blows hot air into directives issued to improve the safety of transport network users. In this same way, the Minister provides us with empty promises for finding a solution to e-tolls. Earlier this month, it seemed Minister Mbalula was bored with himself, as he made all sorts of proclamations to the NCOP about resolving the e- tolls. As we have come to expect, he has broken down on the side of the road of his journey, in concluding this issue.

 

 

The IFP is equally frustrated with this Minister and his lazy attitude in addressing this matter. E- tolls have a devastating effect on road users in Gauteng, especially on many companies who struggle to operate in the current economic climate. The irony here is that businesses are having to close early or cannot trade due to Eskom’s erratic load shedding, yet the e-toll gantries have sufficient power to suck the last few cents from our citizens.

 

 

Unfortunately, we should not hold our breath in the hope that the Minister will take this Report seriously, as this

 

department shows no respect for the values of accountability and responsiveness, as promised in our Constitution. For example, directives were issued to Prasa by the Railway Safety Regulato, RSR, which has been unacceptably ignored. What is the point of spending money to establish supporting functions when the department have the freedom to ignore directives without any good reason?

 

 

This level of disrespect places South Africans at great risk. Before we knew of the risks associated with the covid-19 pandemic, our lives hung in the balance due to transport safety. For example, the potholes in our roads are becoming worse, and criminals are using the damage caused by them to their advantage. Government is lacking in their crack-down and safety inspection of taxis that have been converted from panel vans, which is cause for concern.

 

 

Then there’s the problematic way scholar transport is handled. Recent reports highlight the importance and reliance on the service of scholar transport for those children who would otherwise not be able to go to school. Unfortunately, the model of operation differs from province to province. This sector needs to develop a set of regulations that contain

 

overall guidelines of how services are conducted, whilst allowing provinces to control the demand, area, payments and safety enforcement of scholar transport.

 

 

As we await the slow roll-out of the vaccine, covid-19 is dealing us its third blow. In order to avoid a total knock-out in the transport industry, this department needs to start issuing the R1 billion Covid-19 Relief Funds promised to the taxi industry. Citizens cannot be placed at risk because government has not sufficiently controlled the taxi industry, which has allowed for many illegal and noncomplaint operators. Taxis need to be sanitised more thoroughly, PPEs need to be available in abundance and overall proper planning needs to take place, in order to put our people first.

 

 

IsiZulu:

 

Umgwaqo osuka eSilutshana uya esibhedlela eKombe angeke ngize ngithule ngawo uze ukwazi ukulungiswa. Ngiyabonga.

 

 

English:

 

The IFP supports the Budget Vote. Thank you.

 

 

Afrikaans:

 

Mnr P MEY: Agb Voorsitter, die grootste ekonomie in die wêreld beskik oor die beste openbare vervoerstelsels. Om ekonomies te groei, moet ’n land ’n baie goeie openbare vervoerstelsel hê. Ek wil graag hier na Singapore verwys en ek hoor dadelik dat u sê dat ons mos nie Suid-Afrika met Singapore kan vergelyk nie. Ons beskik oor agt metros. Daardie metros is elkeen so groot soos Singapore. Met ander woorde, dit is nie onmoontlik om daardie selfde openbare vervoer by elke metro toe te pas nie. Byvoorbeeld, in Singapore, as jy van die trein afklim, is jy binne 100 meter by ’n huurmotor of by ’n bus.

 

 

Prasa is vervalle. Dit is tragies hoe hy lyk. Ek dink aan die besoeke wat ons as portefeuljekomitee gebring het en hier in die Oos-Kaap, waar ek dit op my eie gedoen het. Ons verlang na die ou Suid-Afrikaanse spoorweë - altyd op tyd. Die goedkoopste manier van reis in Suid-Afrika is per trein, byvoorbeeld, van Port Elizabeth na Uitenhage is dit R9, maar met die taxi is dit R25. As jy uitwerk, dan is dit R150 wat die armstes van die armes meer betaal vir taxis per week, maar hulle kan nie anders nie, want die treine is te onbetroubaar.

 

 

Ons sal iets moet doen om onmiddellik die treinstelsel te verbeter, as mens dink dat 70% van die passasiers vandag deur

 

die taxi-bedryf vervoer word, en soos die Minister gesê het,

 

hulle kry nie eers ’n subsidi nie.

 

 

Ten opsigte van ons paaie kan ons baie trost wees op ons hoofpaaie. Die South African National Roads Agency, Sanral, doen goeie werk, wat die instandhouding betref. Daar is egter een probleem en dit is dat ’n sekere gedeelte van die begroting aan die provinsies geskenk word. Die provinsies gebruik nie hierdie geld om paaie te onderhou nie; hulle gebruik dit baie keer vir totaal ander redes.

 

 

Ek het dit by ’n vorige geleentheid by die portefeuljekomitee se vergadering genoem, maar ek wil dit weer noem. Die pad, byvoorbeeld, vanaf die N2 na Kharido is verlede jaar geteer. Dis net 100km tot by die grens van die Wes-Kaap dan is die R62 ’n fantastiese pad, maar daardie gedeelte is baie sleg. Dit is die alternatief vir die N2. Ek het by Sanral probeer uitvind. Hulle het toe vir my gesê dat dit aan die Oos-Kaap behoort.

Hulle moet die pad instand hou. Ek het probeer uitvind, maar hulle het skaars geweet wat aangaan. ’n Brief is deur die Parlement aan die Minister geskryf en dankie, hy het onderneem dat Sanral daardie gedeelte sal oorneem en dat dit in 2021 sal verbeter.

 

Ek wil vining noem, die Minister sê da t hy die vervoerstelsel wil omkeer, met ons besoek aan Mamelodi was ek geskok om te sien dat, met ons aankoms daar, ons ingewag is deur omtrent 10 persone. Toe die voorsitter vra wie in beheer is toe kyk die een na die ander. Uiteindelik het hulle na a persoon gewys en gese: “That man. He has 36 year of experience.” [Daardie man het 36 jaar o ndervinding.] Hy kyk na die voorsitter en hy sê: “I am only here temporary.” [Ek is net tydelik hier.]

 

 

Hulle het uiteindelik iemand aangewys. Daardie treinbrug oor die spore het 25 ligte wat vir 11 maande nie brand nie. Toe gevra word hoekom nie, toe sê sy dat sy hulle in Februarie skriftelik in kennis gestel het. Ons was in Desember daar.

Daar sal eenvoudig net ’n groter verantwoordbaarheid by die werkers moet kom. Dit is nie by die bestuur waar die fout lê nie, maar by die mense wat die werk moet doen.

 

 

Ek wil afsluit deur vir die Minister te sê dat hy ’n moeilike taak het, wat hom voorlê, maar ons moet ’n slag wegdoen met kaderontplooiing. Ons moet wegdoen met regstellende aksie.

Stel die mense aan wat die werk kan doen in die belang van Suid-Afrika en sy mense. Ons kan nie meer langer toelaat dat ons land so agteruit gaan nie. Ek dank u.

 

The DEPUTY MINISTER OF TRANSPORT: Hon House Chairperson, hon Frolick, the hon Minister of Transport, Mr Mbalula, the Director-General of Transport Mr Myeni and those accompanying him, chairpersons and board members of our state-owned enterprises, SOEs and state-owned companies, SOCs, the chief financial officers of the entities, ...

 

 

Setswana:

 

... bagaetsho ba Aforika Borwa, re a dumedisa.

 

 

English:

 

As we table this budget we are reminded of Mme Maxeke for her undying commitment to free her people. For that denature at them and the dignity of the people which is sought for them being unhumanised and she stood firmly for the liberation in particular of women and today we can proudly say we are here in these hallow chambers and many women have been able to occupy positions of power.

 

 

Like Charles Dickens in the World of Paradoxes, his world of persistent contradictions, we too, are hit by a spectacle of major contradictions in our age, a spectacle of the life shown by the technologies and Fourth Industrial Revolution and other

 

paradoxes and the other paradoxes of dark, poverty, unemployment and landless as we are facing the pandemic.

 

 

However, the mechanism that forms the vast capacity of the transport sector which is meant for the persons with disabilities and continue to find themselves in the periphery and exclusion in the economy and social exclusion are the things we had to deal with. Hon members, in line with the priorities of the Sixth Administration, let us focus on the Medium-Term Expenditure Framework, MTEF, in reviewing policies to ensure that we effectively tackle the triple challenges of poverty, inequality and unemployment. We must further promote and advance the persons and persons that have been disadvantaged and unfairly discriminated.

 

 

As the case in question the Department of Transport has reviewed the White Paper on Transport policy and also have a summit on Policy Aviation which was launched to make sure that all the relevant stakeholders participate. The aim being to fast-track the relevant information. We also formulated legislative pieces committing ourselves to transform and draw the transport sector towards efficient and reducing the cost

 

of doing business in the easy entry of those who have been excluded.

 

 

To this effect we have got 12 Bills that are before Parliament and we believe Parliament will be able to prioritise some of these Bills so that we can be able to have speedy progress. In a quest to satisfy our constitutional principles of equality as directed by the struggle stalwart Mme Maxeke and others who came before us, it is necessary for us as public representatives and public servants to make sure that this mandate is really realised and in particular the mandate of

...[Inaudible.] in the application. This speaks to Public Infrastructure Bill which must adhere to the designs that must enable safe access and universal access in particular in the public transport space.

 

 

Transport legislation read in conjunction with the Consumer Protection Act and the Promotion of Equality and Prevention of Unfair Discrimination provides a powerful mechanism to inform the transport sector so that they can be able to be passenger focused. In fact, when you look at the Batho Pele Service Chart on the access demand, it reads as follows:

 

All citizens have equal access to the service to which they are entitled.

 

 

We have already established partnerships with the office of the Minister of Women, Youth and persons with disabilities since the last financial year with the main objective of making sure that the vulnerable groups particularly in the public sector space are looked into. Our major focus with the Deputy Minister was to look at the sexual harassment, gender- based violence and femicide in the public transport sphere.

 

 

Gender, disability, youth and children’s ... [Inaudible.] of the department remains a conduit for the mainstreaming of issues affecting vulnerable groups in this sector of transport. We also continue to strengthen women-run businesses formation. Evidence is what we did in the Northern Cape where we launched a charter of Sanweek and post this budget vote there will be other two provinces that we will go and visit to revitalise these structures.

 

 

In that universal access, we are currently finalising a complaints mechanism which we will make sure that we monitor complaints of the persons with disabilities in particular and

 

disperse necessary resolutions of these challenges. I need to also indicate that the Minister has set the agenda and two of the issues that we believe we can be able to do is to make sure that we monitor transformation in construction, engineering, aviation and maritime sector in line with the national transport transformation imperative in a manner that broadens economic participation, economic growth and create jobs. The Minister has impressed upon us that it is critical for the Broad Based Black Economic Empowerment, BBBEE, the skills development and the growth of the small, medium and micro-sized enterprises, SMMEs and co-operatives with a particular focus to townships, small towns and rural economies. The department had thus far adopted a set of priorities among others for this MTEF linked to the National Development Plan to build strong and inclusive economy and to adopt the apex priorities of government with the focus on job creation and economic transformation.

 

 

We also believe the transformation objectives of the projections could best be realised in preparing young people and making sure that they are employable once we have been able to prepare them with quality education, skill development

 

and capable ethical professional cohorts that would be able to best serve the public service of the Republic of South Africa.

 

 

The department has since made sure that there are internships, learnerships and apprenticeships for all these cohorts that we are talking about and believe that they can be immediately be absorbed in the work stream. We report that the department managed to have bursaries which were sponsored by the department and the Sector Education and Training Authority, Setas, so that we can be able to contribute towards the skill development in the Republic of South Africa. To this effect I need to indicate that from 31 May the Setas, 35 195 various skills programmes have been entered into and these were sponsored by the Setas.

 

 

In addition, the department together with the public entities and provincial departments has given bursaries to 3 750 to unemployed group believing that once we are able to help these people we will be able to improve service delivery in the Department of Transport. The Department of Transport is in agreement with 13 universities and this agreement will be revised so that we are able to look into the six government priorities.

 

In this financial year we will continue to search for scarce skills so that we can be able to improve particularly the scarce skills that will be coming from the Tvet Colleges. The aviation transformation leaves much to be desired because of the slow pace of people who were previously disadvantaged find no space but only 20% of the previously disadvantaged are in aeronautical engineering as pilots and other critical skills. This is one of the things that the department is looking into to make sure that we are able to increase this cohort.

 

 

Despite the aforementioned issues, one of the strides that the department is making is to make sure that the National Transformation Strategy in this financial year, focuses on these challenges that I have mentioned and they become priorities. Actions of this financial year for further transformation of the aviation sector include finalisation with the Department of Basic Education to make sure that we draft and finalise the curriculum with the Department of Basic Education.

 

 

We are in phase 2 to make sure that the business case for the establishment of the government’s own academy is moving forward. The Civil Aviation Authority with regard to safety

 

and following the Minister’s directive of accident free or generally 50% of the accident in aviation if they happen, should not happen here in South Africa. South African civil aviation has a five-year plan to make sure that we work towards this goal outlined by the Minister but we need to also indicate that a zero percent accident in schedule for the commercial flights is something we need to applaud.

 

 

We must also applaud the ATNS in making sure that our skies are safe and are kept safe. Our aviation entities have been the hardest hit in the sector over the period of Covid-19 pandemic and associated lockdown due to the grounding of the flights and closer of the borders. This must be recognised because this having been the entities that can be able to sustain themselves but now their cap in hand to the department to seek help for extra funding.

 

 

I also need to indicate that the Rail Safety Regulator and other entities are now able to work in such way that there is no more war between Prasa and Rail Safety Regulator but they are working harmoniously and you can see, you can even feel. The report that tabled to Parliament has got that they can be able to show. I need to also indicate that the portfolio

 

committee is ceased with the Rail Safety Regulator Bill which we believe that it is one of those Bills that once we fast- track and prioritise it will assist the Rail Safety Regulator because current Bill of 2000, Act no 16 2002 really has got some challenges and therefore the repeal of this Act will go a long way in making sure that we are able to regulate and we are able to make sure that government can be able to implement.

 

 

We believe that Rail Safety Regulator as the regulator has been gazetted will go a long way in this financial year to guide us on where to go. We have got challenges in the rail reserves and in the rail reserves. We are calling on all South Africans to say please these are the national assets and need to be preserved so that they can be able to take care of you.

 

 

As I conclude, I need to indicate that the budget that has been presented by Minister Mbalula will go a long way in responding to some of the issues that have been highlighted by the opposition party. The budget that Minister Mbalula presented is the budget which has got a foundation that has been laid previously for the achievement of the MTEF and we believe that supporting this budget we will go a long way in

 

making sure that South Africa is no longer the one of the past but is South Africa that is moving and South Africa that will grow the economy. I thank you, hon House Chairperson.

 

 

IsiNdebele:

 

Num T B MABHENA: Sihlalo, ngilotjhisa soke isitjhaba.

 

 

English:

 

Chairperson, the Department of Transport spent millions of rands organising the Taxi Indaba, a largely expensive yet low yield exercise because to date the department is yet to distribute the over R1,1 billion Covid-19 taxi industry relief package.

 

 

Chairperson, the taxi recapitalisation programme remains an overly generous programme in terms of virements. This is mainly because the uptake on the programme is lagging behind and bearing no fruit. As a result, the department uses this programme as a conventional savings account. Funds are just allocated to this programme as a tick box exercise and only for these to be redirected to other departmental programmes. Yet, the Minister this morning claims that the Taxi Indaba was a success.

 

The local government elections are upon us, and without fail, another threat of the so called eminent announcement on the future of Gauteng e-tolls has already been issued by the Minister just in time. Like many of his predecessors, same script just different actors. This is what has characterised this department; empty promises and the ongoing insult to Gauteng motorists continues unabated.

 

 

The devastating announcement by the department through a letter to the executive Mayor of the Nkangala District Municipality in Mpumalanga that the department will not be implementing the Moloto Railway Corridor remains one of the biggest insults to the people of Mpumalanga, and a direct contradiction of the ruling party’s own policies on moving people and goods from road to rail. But hey, who are we? These are masters of empty promises and manipulation.

 

 

Chairperson, the people of Mpumalanga continue to die on the Moloto Road, the R573 road stretch. To date, all the interventions that this department has undertaken have all failed to halt the ongoing onslaught of breadwinners who are dying on that road. The department’s response through South African National Roads Agency Limited, SANRAL, is a lousy

 

advertising spree on the very same road stretch. This department, through SANRAL, has adverts worth hundreds of thousands of rands across this road stretch purporting to convince the community that they did something. However, the department doesn’t even have to spend anything to convince the community of Mpumalanga on this, they can simply deliver what they promised these communities many years ago and save much tax payer’s money on nonsensical advertisements.

 

 

Chairperson, an efficient and effective public transport system and network is one of the first steps towards solving the triple challenges facing many South Africans. The inefficiency of the department to inspire confidence and spearhead an effective and sustainable programme of integrated and efficient public transport system rollout in South Africa is a cause for concern. Not only that, but the department is by far the largest contributor to perpetual poverty in South Africa through its gross inefficiency.

 

 

Chairperson, it is no secret that the global health pandemic has had a devastating effect on the many economies across the globe and our local economy was not spared in the ongoing onslaught of this global health threat and crisis. Our economy

 

was already on its knees and this global health crisis proved to be a devastating blow to us.

 

 

What didn’t help was the fact that the department was in disarray. Confusion and contradiction on the regulations as issued in the government gazette by the department which were characterised by withdrawals to just pure madness to being inconsiderate. We got to witness with utter disgust and shame on how the very people that are entrusted with the most critical levels of government were failing to provide leadership. We got to witness how this department, which over the years has transformed into personal ... [Inaudible.] ... of these so called cadres; completely collapsing in front of their eyes, and just how inefficient they are.

 

 

To ignite an economy, any self-respecting government in the world knows that they would need an efficient public transport system given the fact that a lot of incomes and many South Africans diminish during this global crisis. It makes sense that the mobility of South Africans should be the least of the worries of our citizens. Yet, the department failed dismally to lessen this burden on our people. Thank you very much, Chairperson.

 

Tshiven?a:

 

Muf M M RAMADWA: Ndo livhuwa tshifhinga tshe vha n?ea tshone, Mudzulatshidulo wa Nn?u. Kha vha ntendele ndi lumelise Muhulisei Minisi?a wa Muhasho wa Vhuendi, Vho Mbalula, Muhulisei Tshan?a tsha Minisi?a, Vho Magadze ...

 

 

English:

 

... director-general ...

 

 

Tshivenda:

 

 ... na tshigwada tsha Muhasho wa Vhuendi, Mira?o ya Buthano ?a Lushaka, vhomme na vhokhotsi, na vhadzulapo vha Afrika Tshipembe.

 

 

English:

 

Hon Chairperson, transport is the lifeblood in any economy of the movement of goods and people. It is also essential for the provision of service and gaining access to service. Transport is critical for the efficient functioning of the economy and also makes an important contribution directly and indirectly to job creation and the gross domestic product, GDP. It must be acknowledged by all that the Covid-19 pandemic has had a major negative impact on the transport sector and the

 

department has been functioning under very trying conditions to make progress in the transport sector.

 

 

It is important in this Budget Vote to focus on the road infrastructure as it is a source of development and concern. Our focus on roads is the focus of the people, which means that it is important to address issues related to the road infrastructure in this Budget Vote. The country has a fairly developed road network which requires to be further developed to ensure that rural areas are connected to towns and cities.

 

 

Just as we face many challenges in the transport sector, there are equally opportunities. While understanding the challenge and seeking to fix the challenges as the old adage goes ‘For every problem there is a solution’, it is the solution and its implementation thereof that we must focus on in this Budget Vote and assess the important opportunities that present themselves.

 

 

Hon Chairperson, during the 2020 and 2021 state of the nation address, President Matamela Cyril Ramaphosa announced the refurbishment of N1, N2 and N3. These are major national roads which connect the different parts of the country. This is an

 

important undertaking as it has positive economic implications. This responsibility will be that of the Department of Transport, at the same time, the department must ensure that there is an improvement in the business model of Transnet Rail to protect the road investment by moving freight and goods off the road.

 

 

Hon Chairperson, SANRAL traditionally has been one of the more successful state-owned entity, SOE. It has always successfully executed road development projects which it was assigned and it has generally functioned efficiently. The South African National Roads Agency Limited will be tasked to ensure the refurbishment of the N1, N2, N3.

 

 

It is important that the funding for this major project is made available for this project to enable implementation. The Gauteng e-tolls Freeway Improvement Project, GFIP, issue requires resolution as this has negatively affected the credit rating of SANRAL. This issue has been a long and drawn out process, and a workable solution needs to be implemented as the agency should not be negatively affected when implementing road infrastructure development projects.

 

Declining budgets for road transport projects mean that SANRAL must ensure that it is able to secure maximum value for road development. Hon Chairperson, Road Traffic Infringement Agency, RTIA, and Road Traffic Management Co-operation, RTMC, play an important regulatory function to ensure road safety and compliance with the road regulations. The department is intending to integrate these entities into one to have a single programme for road traffic law enforcement. The road safety must be implemented, monitored as this is complimentary and reinforces road traffic law enforcement. Both road safety and law enforcement is critical as it is an active deterrent that reduces road hazards and accidents. The greatest asset which this country has is its people, and therefore there must be reduction of road accidents.

 

 

Hon Chairperson, having sound legislation and regulation based on the best international practice is important but it is less effective if there is no sufficient enforcement. The budget for this programme increased which means that the programme required to be rigorously re-implemented.

 

 

The Road Accident Fund, RAF, has been much in the media with court cases of lawyers and RAF staff agreeing on settlements

 

which are not lawful. Another reported incident was the attempted recovery by RAF of some R320 million which was a duplication of payment to illegal firms representing accident victims. This is also a reflection of poor financial control. The Road Accident Fund carries a liability of 367 billion.

This is a risk and cannot continue. A solution should be found.

 

 

The level of increase in road accidents is only part of the problem. Government and financial controls need to be enforced with consequence management. The fund is currently a risk to fiscus. Intervention is necessary. This includes the implementation of the road accident benefit scheme policy which is based on social security principles.

 

 

Hon Chairperson, recently there has been much media attention on the condition of municipal and provincial roads in many parts of the country, including those which are run by opposition parties at provincial and municipal level. The condition of the roads has deteriorated. Road transport seems to be the dominant mode of transport in the country even for freight of goods. The ANC-led government has emphasised its desire to move freight and goods transport from road to rail.

 

Transnet Rail needs to attract this business through ensuring that rail is cheaper and more efficient for the transport of freight and goods.

 

 

The trucks which transport freight and goods have a negative impact on the roads due to high usage of road by these vehicles. This means that roads need to be more frequently refurbished than was originally planned. This places pressure on the budget which can be utilised to build new roads, especially in rural areas to ensure that growth in the agriculture sector is always accompanied by infrastructure rather than refurbishing existing roads.

 

 

The functioning of weigh bridges must improve in all parts of the country to control the weight of heavy duty trucks on the road. Many roads have dangerous potholes which results in accidents causing injury and at times a loss of life. These road accidents which are caused through the condition of the roads, besides causing hardship to families, have a negative economic impact and cost the country billions of rands. In rural areas this becomes an even greater problem during rainy seasons as farm workers are transported by trucks and at times

 

they are open trucks which become a problem when faced with an accident due to potholes in the roads.

 

 

Timely road maintenance is economically far cheaper than allowing for a road to deteriorate to the point where it has to be completely rebuilt. This is becoming a further problem under the condition of budget cuts in a context of this country’s fiscal constraints. It is imperative that greater co-ordination occurs between the national, provincial and municipal departments in terms of road maintenance and development. This co-ordination must always ensure that budgets are utilised efficiently for maintenance in order to reduce fatalities on the roads and improve the road infrastructure of the country.

 

 

The road transport sector is not all gloom and doom as the people utilise the roads daily and public transport is functional, and therefore the point which is being made is that there are challenges which have to be dealt with and there are important plans of the Department of Transport that require implementation and oversight. As a public risk representative, it is imperative that the concerns of the people are articulated in the democratic Parliament. Moreover,

 

there is always room for improvement and culture of striving for constant improvement must be ingrained into implementation of departmental programmes, and all entities reporting to the department must improve their level of service delivery.

 

 

It is important that the plans for the department are implemented in an efficient and cost effective manner so that there is quality of spend and maximisation of the value for the country even though the country is functioning under difficult conditions due to the Covid-19 pandemic. The ANC supports this Vote. [Time expired.]

 

 

Mr M G E HENDRICKS: Hon House Chairperson, Al Jam-ah supports the budget. I also want to raise – I hope the Minister is listening, as he always does - a matter of national importance. You cannot have our naval base in Simon’s Town where our sailors are and they live all over the peninsula, such as Khayelitsha, Ocean View and there is no train service for them from Fish Hoek to Simon’s Town.

 

 

So, when there is an attack on the country, our sailors need to come to base, but there is no train service for them. They have to navigate the very difficult public services like

 

taxis. They have to pay extortion money where they live, so that, when they leave their homes in Khayelitsha, their houses are safe when they come back. This extortion money goes to the gangsters in the prisons.

 

 

Our sailors are at risk and I met the Admiral two days ago at Admiral House in Simon’s Town. I did not raise is with him, but I am raising it now in this meeting because there were DA councillors who run the City of Cape Town invited to the meeting and they asked me to raise this. So, I am doing this work on behalf of the DA because they are responsible for the City of Cape Town and they are very concerned that there is no rail service from Fish Hoek to Simon’s Town.

 

 

This is a matter of national importance. We cannot put our sailors at risk before they have even boarded the submarines and the ship to attack the enemies. And you know, with America in Africa all over and they want regime change, because of our position on Palestine, the Navy has to be on alert.

 

 

So, I want the Minister to reply with the deepest respect that he will find money in this budget to ensure that the rail service run from Fish Hoek to Simon’s Town. We cannot put our

 

sailors at risk because they are there to protect the country. If the Minister of Transport does not do his job, he is putting the whole country at risk. Thank you.

 

 

The ACTING CHAIRPERSON (Mr Q R Dyantyi): I hope you will not speak on behalf of Al Jam-ah.

 

 

Mr I S SEITHLOLO: Chairperson, in 2019, I stood before the House albeit on the virtual platform, to debate on the budget of the Department of Transport. I highlighted the failure of ANC-led government in the City of Rustenburg in getting their Integrated Public Transport Network rather than the Rustenburg Rapid Transport, Rustenburg Rapid Transport, bus service underway after conservative postponements and collapse of bus stations. In a response to questions asked to the department in 2019, on whether the Minister intends to conduct an oversight visit to the collapsed commuter station of the RRT and whether he intends to assess the progress made by the Rustenburg Local Municipality on the completion of the RRT project, the Minister replied as follows, and I quote:

 

 

The department is working closely with the Rustenburg Local Municipality to ensure that the municipality is ready to

 

implement operations on the Cabana Corridor where the unfinished defective station is located, as soon as possible. It expected that the initial operations will start no later than the end of January 2020. I will conduct a full inspection once the system is operating.

 

 

Fast-forward to 2021, no buses are running. There are incomplete bus stations and the traffic is still a mess in Rustenburg.

 

 

In an interview with 702, mayor Khuno and the Acting Director for Roads and Transport in Rustenburg had the audacity to blame the lockdown for the failure to have buses running and the stations not being completed. This is after R3,4 billion later and almost 12 years in the making. In October 2021, the executive mayor will leave and then a new mayor will just shrug off his or her shoulders on this issue.

 

 

In an article published by News 24 on 9 March 2021, it is alleged that a company with the links to the controversial ANC benefactor, Edwin Shodi, was leading the construction of the Rustenburg Rapid Transport project, whose delayed completion has been attributed to some alleged self-enrichment by senior

 

politicians and municipal officials in the North West province.

 

 

Once again, the ANC government shows its distain to South African taxpayers. But the rot does not end there. Just take a few hours’ drive to the Free State from Potchefstroom in Bloemfontein where the City of Mangaung is no better than the City of Rustenburg. They have indeed aced the art of looting, financial mismanagement and failed cadre deployment, with 10 buses each purchased at a staggering amount of R5,5 million with absolutely no justification or plausible explanation in this regard.

 

 

In an oversight undertaken by the department in November 2020, the officials within the cities crumbled around to find some sort of explanation as to why these buses were purchased for such an exorbitant amount each. To make matters worse, these buses have been parked for over a year without being used, while they continue to depreciate.

 

 

Unrealistic targets were presented to the portfolio committee relating to the completion of routes within the metro and yet with the scenes of violent protests that we have seen during

 

this week and the destruction of property that is currently taking place in the capital that is Bloemfontein, we can already confirm that those targets will not be met or reached. Thank you.

 

 

Mr L E MCDONALD: Hon Chairperson, hon Minister, hon Deputy Minister, hon members of the Portfolio Committee on Transport, hon members and fellow South Africans, the transport sector has played acritical role during the COVID-19 pandemic.

Essential goods and services were delivered and many transport industries were in the frontline of were ensuring that the delivery of food and medicine in the country. Essential imports were processed that are that the aviation ports and supplied in the markets. These frontline workers in the transport industry need to be honoured and commended during the Budget Vote. Every major mode of transport, namely, road, rail, shipping and aviation was unable to function efficiently and optimally so the pandemic had had a particular negative financial effect in the transport sector which has been stop functioning because of the announcement of the disaster management regulations. These regulations were necessary to flatten the curve and save human lives.

 

Hon Chairperson, South Africa is one of the envies in the world when it comes to civil aviation. The legislations brought by the department processed by the committee on the amendement of the aviation is certainly commendable. The original Act of 2009 pose a number of challenges in terms of the implementation the amendment Bill which the National Assembly approves seeks to create the independent civil aviation authority in accordance with the current international practices. The legislation also incorporate the international codes in civil aviation to which the country is a party as adopted by the international Civil Aviation bodies. For the first time environmental standards were also made the responsibility of the civil aviation authority as the country has international commitments to endure the reduction of the greenhouse gas emissions.

 

 

In the past the civil aviation authorities fell outside the Public Finance Management Act, PFMA, and the current legislation has to rectify the anomy through ensuring that the entity will conduct its business in accordance with the PFMA. The Act also makes the Civil Aviation Authority a preferred creator to ensure that the money collected on its behalf will

 

reach the entity from any company collecting it on its behalf based on security challenges.

 

 

The department has been functioning under the challenges abnormal circumstances during the COVID-19 period and slow and steady progress has been made under this condition. The department has a clear annual performance plan which is clear on quarterly targets. This makes enhanced oversight much easier on the based on clearly defined reporting for each programme. However, it is imperative that the department is able to fill a large number of vacancies with skills and capable people to ensure the implementations of plans and prograames.

 

 

Hon Chairperson, there are three major regulatory and services to support the department of Transport in the civil aviation sector, namely, the Airports Company of South Africa, Air Traffic and Navigation Services and SA Civil Aviation Authority. These entities play a significant role in the civil aviation industry to ensure that the country maintain the highest international standards and best practices as these bodies must function in the same international standards given that the civil aviation has both local and global.

 

The SA Civil Aviation Authority deals with an important and safety regulatory measures regarding the safety and incidents in the civil aviation industry. The Air Traffic and Navigation Services ensures that air traffic are able to safely land and depart airports and manta a safe flight plan destination. The civil aviation cannot function effectively without these bodies.

 

 

Chairperson and hon members, the budget for the Air Traffic and Navigation Services, ATNS, is based on an assumption of an increase in revenue at both low level costed due to cash reserve measures. This must be monitored going forward as this situation remain [Inaudible.] in the aviation industry. The Airports Company South Africa, Acsa, has been the company responsible for developing most of the major airports in the country. It operates nine airports and has other investments in other international airports. It also has capacity in the advising and consulting services to other airports nationally and internationally. The Airports Company South Africa derives its revenue from civil aviation industry and through commercial operations at the airports. Additionally, Acsa has been financially self-sufficient, but due to COVID-19 and travel restrictions particularly in the civil aviation

 

industry, the company’s cash generation ability was badly affected. It was forced to restructure its expenses and address inefficiencies that are quite substantial increase in air traffic increase to gain financial self-efficiency.

 

 

Hon Hunsinger was in the meeting and he knows very well that the department, through the Minister, has for the first time aligned its annual performance plans, APPs, with the service delivery. Going forward with this budget, the department will definTEalty enhance its service delivery in the future.

 

 

Hon Nolutshungu should really consider to attend a couple of meetings because she would then know that the strides the department has made in addressing all the issues that she has mentioned. Hon Mey, the ANC government will never shy away from the broad-based economic empowerment and we will continue with our radical economic transformation throughout the country with blacks, in particular, and we will never, never shy away from our policies. The ANC supports the budget. Thank you very much, Chairperson.

 

 

The MINISTER OF TRANSPORT: Chairperson, firstly, let me start by passing my condolences to the chair of the committee, hon

 

Mosebenzi Zwane on the passing of his brother. I suppose that is the reason he is not in the line-up today. Our deepest condolences from the Ministry.

 

 

I also wish to thank the Ministry of Transport and everybody who work with me, the director-general, DG, and his team and the Deputy Minister. As a team, we are able to deliver this budget today. Thank you also to hon members for your invaluable input in terms of our budget.

 

 

Let me start with the Road Accident Fund, RAF. The 6th administration highlighted and elevated the challenges facing RAF, that is what we have done. We brought governance and administrative stability to this entity. Upon assumption of office we immediately appointed a fully-fledged and competent board, we also appointed a competent CEO, Mr Letsoalo, and many people don’t like him because he is competent. He has got all my support, the support of the board and the support of this government.

 

 

We earnestly commenced the difficult task of bringing this entity to sustainability. We developed a five-point intervention plan and began to implement it. We took up a

 

fight that was being avoided for a long time. We challenged the bogus lawyers who were milking the entity. This intervention is working.

 

 

In the 2018-2019 Financial Year, the RAF collected revenue for an amount of R17 billion, hon Mabena. Of this, R10,3 billion, was spent on legal fees when only up to 5% of RAF cases are ending up in court. We could not go on like this; we have dissolved the panel of attorneys as all of you know. We are in court but we are winning.

 

 

We have signed an A memorandum of understanding, MOU, with the Office of the Solicitor General at the State Attorney. This matter alone is saving the entity about R10 billion annually. We are also changing the model of the fund. We have for the first time gazetted the medical tariffs for the RAF, and this will further curb abuse of process on the dealings, particularly of administration.

 

 

We are investigating all fraudulent claims and corrupt individuals and activities of RAF will bring all crooks to book. We will bring this fund to sustainability and address

 

its growing concern status in the course of the term of office.

 

 

On the issue of e-tolls, I am not rogue, I am part of a collective and I am part of Cabinet. The issue around e-tolls is an issue that require a decision from government. Yes, I lead that. I have presented nine possible solutions on the e- tolls impasse, which I had inherited, it is not easy. If it was easy the solution could have now been pronounced.

Government is on the verge of resolving this matter. The National Treasury has been mandated by Cabinet to work with us to resolve this matter. An announcement is imminent and I have therefore not misled the committee.

 

 

For those who don’t have governance experience it is very easy to just criticise. It is a tough job of balancing the government books. We are nearing to find a solution on this matter, a sustainable, responsible and within the available legal framework. This matter like others confronting this portfolio will be resolved. Even though it took longer than we, ourselves would have loved.   We concur with hon members that the decision on this matter is important to bring certainty.

 

I fully agree with all of you across the political divide irrespective of your ideological background. I agree with you. But solutions on this matter must be arrived at for the sake of our country and properly functioning of our economy.

 

 

On matters of concurrent function, whilst we accept leadership responsibility – you know that the Department of Transport is a concurrent function. The Minister of Transport does not close portholes, it is the municipality at local level. If you see portholes in Johannesburg, it is Johannesburg that must resolve that, in Polokwane, it is Polokwane. If you see portholes on the N1, it is my responsibility. It is only hon May from FF Plus who have acknowledged. He said that he recognises the role South African National Roads Agency, Sanral, is playing for road maintenance.

 

 

We have had disaster after disaster, we have just had a cyclone on our shores, we have the pandemic in our hands and we have got the issue of e-tolls that must be resolved and we are committed to doing that.

 

 

In conclusion, on Passenger Rail Agency of South Africa, Prasa, we work very hard with Prasa to get things going, we

 

need dust on the ground and that is what is happening. I have a board now; I have got a CEO. Hon member from Al Jama’ ah, I have presented to you that the Cape Town to Simon’s Town corridor is one of those that will be opened before the end of the year. And that we are working hard to get down to business in ensuring that the corridor is fully functional and sorted out as we would have presented. I thank you, Chairperson.

Debate concluded.

 

 

The Mini-plenary rose at 11:50

 

 

 


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