ATC240722: Report of the Select Committee on Public Infrastructure and Minister in the Presidency on Budget Vote 40: Transport and the Annual Performance Plan of the Department of Transport, Dated 19 July 2024

NCOP Public Infrastructure & Minister in the Presidency

Report of the Select Committee on Public Infrastructure and Minister in the Presidency on Budget Vote 40: Transport and the Annual Performance Plan of the Department of Transport, Dated 19 July 2024.

 

The Select Committee on Public Infrastructure and Minister in the Presidency (“the Select Committee”), having considered the Annual Performance Plan and Budget (Vote 40) of the Department of   Transport, reports as follows:

 

1. INTRODUCTION

 

1. 1. The Select Committee considered the 2024/25 Annual Performance Plan (APP) of the Department of Transport (“the Department”) on 17 July 2024.  In preparation for this report, the Department briefed the Committee on its 2024/25 APP and 2024/25 Estimates of National Expenditure.

 

1. 2. The Department of Transport (DOT) is responsible for conducting research and formulating legislation and policies to set sector wide strategic direction for pipelines, roads, airports, harbours and the intermodal operations of public transport and freight. The Constitution of the Republic of South Africa, 1996, (“the Constitution”) and transport legislation assign transport responsibilities to other levels of government and DOT regulates through setting norms and standards and monitoring implementation.

 

1. 3. In the introductory remarks, the Minister for Transport conveyed to the Select Committee that there is no coherence between the Department APP and the reality of the mobility systems in the Country. This reality is reflected in a rail and freight system that is not functioning properly; roads that are not properly maintained; and a taxi industry that is plagued by violence. The development of the new Five-Year Strategic Management Plan will take such realities into consideration.

 

2. Alligning THE 2024/25 Budget Allocations to the Annual performance Plan Indicators 

 

1. 1. The Department’s expenditure is expected to increase at an average annual rate of 4.2 %, from R78.3 billion in 2023/24 to R88.6 billion in 2026/27. Following instructions to Departments to reduce budgets, the Department’s budget has been reduced by
   R20.3 billion over the medium term. This will translate into a reduction in the transfers to public entities, including the South African National Roads Agency (SANRAL) and the Passenger Rail Agency of South Africa (PRASA) (R17.4 billion reduction); reduction in transfers to the Provincial Roads Maintenance Grant (R2.7 billion reduction); and a reduction in transfers to the Public Transport Network Grant (R237.9 million reduction).

 

1. 2. The Department’s APP also reflects on the Consolidated Indicators which are indicators implemented by the Public Entities reporting to the Minister for Transport and which the Department monitors. These include, amongst other, the following indicators:

 

1. A target of 5000 direct jobs and 23 800 indirect jobs created through the PRASA infrastructure Programme;  
2. A target of 50 stations revitalised;  
3. A target of 25 PRASA lines in operation;
4. A target of 90.07 million rails passenger trips; and
5. A target of 238 rolling stock units reconfigured or refurbished through the General Overhaul Programme.

 

1. 3. Transfers and subsidies account for 97.9 per cent (R250.37 billion) of the Department’s expenditure over the next three years. These transfers and subsidies are to transport public entities and agencies to carry out their mandated functions, and to other spheres of government with concurrent transport functions through the Provincial Roads Maintenance Grant (PRMG), the Public Transport Operations Grant (PTOG), the Public Transport Network Grant (PTNG) and the Rural Roads Asset Management Systems Grant (RRAMSG). The Minister has appealed to the Select Committee to focus oversight efforts on monitoring the expenditure of conditional grants in Provinces as the reality is that provinces that have poor road conditions, return unspent grant funds to the fiscus.

 

1. 4. A budget of R86.8 billion has been allocated to the SANRAL over the MTEF.  The Agency will utilise this allocation to maintain the national non-toll network, and R4.1 billion will be spent on the N2 Road Wild Coast project; R3 billion is allocated to the R573 (Moloto Road) development corridor; and R2.3 billion is allocated to the Gauteng Freeway Improvement Project.

 

3. OBSERVATIONS AND KEY FINDINGS

 

1. 1. During the consideration of the 2022/23 Annual Report, the Department reported that a business plan and project plan had been developed for the transfer of the card production function from the Driver’s License Card Account (DLCA) to the Road Traffic Management Corporation (RTMC). National Treasury had been requested to support the dissolution of the DLCA and the transfer of all assets and liabilities thereof into the RTMC. The Department reported that at present National Treasury is still considering the request for the decommissioning of the DCLA trading account.

 

1. 2. In response to an enquiry by the Select Committee, the Department reported that the procurement of a new license – card production machine is still underway. During the consideration of the Department’s 2022/23 Annual Report, it was reported that the machine is obsolete, prone to breakdowns and poses a risk to the targeted production of 6 500 000 license cards over the MTEF period.

 

1. 3. In response to a question on collaboration, the Department responded that it does collaborate with the Department of Tourism. The Department is responsible for issues licenses to tourism rail operators and have over the past two years been able to eradicate the licensing backlog.

 

1. 4. The Select Committee requested the Department to elaborate on the 69% increase in the allocation to the Civil Aviation Programme between the 2023/24 financial year and the 2024/25 financial year. The response was provided that approval had been obtained for investment into Air Traffic Navigation Services equipment which had become obsolete.

 

1. 5. The Select Committee requested the Department to indicate which measures are in place to increase safety for transport users, including people with disabilities. The Department responded that it has hosted a Universal Access Conference where the conference theme was the progressive improve access to transport.

 

 

4. recommendations

 

The Committee recommends that the Minister ensure that the Department:

 

1. 1. Provide a progress report on the finalisation of the Service Level Agreement between the Department and external stakeholders such as National Treasury and Law Enforcement Agencies required in the finalisation of investigations into potential corruption.

 

1. 2. Provide the following assessment reports completed for the previous financial year:

 

1. Provincial and Municipal Road Asset Management (RAMS) Assessment Report.
2. Annual Status Report on the development and implementation of ‘one-plans’ in fifty (50) district municipalities developed.
3. Analysis Report on the Management and Oversight of the PRASA Capital Programme.
4. Annual Monitoring Report on the Implementation of the National Road Safety Strategy.
5. Monitoring Report on the SANRAL Road Maintenance Programme.
6. Analysis Report on the State of Aviation Accidents and Incidents in South Africa.

 

1. 3. Provide any intervention plans that have been developed to reduce truck congestion around the Richards Bay Port as the trucks negatively affect the road conditions and pose a safety concern to other road uses.  

 

1. 4. Brief the Committee on the follow in respect of the taxi industry:

 

1. Any intervention plan developed to address violence in the taxi industry,
2. Taxi recapitalisation downstream projects; and
3. Implementation of the 2020 Taxi Lekgotla resolutions.

 

1. 5. List which matrices / indicators are used to assess gender responsiveness for the Department’s Strategic and Annual Performance Plan and the Annual Report.

 

1. 6. Brief the Committee on the Draft Regulations to the Transport Economic Regulation Act, with a specific focus on ensuring that safeguards are put in place in the undertaking of market enquiries to address concerns of scope creep and overreach.

 

1. 7. Provide a copy of the Universal Access Conference Resolution Charter.

 

The Committee recommends that the Council approve the budget of the Department of Transport.

 

Report to be considered.