ATC130523: Report of the Portfolio Committee on Transport on the Strategic and Annual Performance Plans of the Department of Transport and its Entities, dated 30 April 2013.

REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT ON THE STRATEGIC AND ANNUAL PERFORMANCE PLANS OF THE DEPARTMENT OF TRANSPORT AND ITS ENTITIES, DATED 30 APRIL 2013.

The Portfolio Committee of Transport, having considered the Strategic Plan and Annual Performance Plans of the Department of Transport and its entities for 2013/14 (revised), reports as follows:

1. INTRODUCTION

The report contains the strategic objectives of the Department of Transport (the Department) and its entities presented to the Portfolio Committee on Transport (the Committee) on 16 and 17 April 2013. The Committee, in its oversight role over the Ministry, the Department and its entities, has to consider the Strategic Plan of the Department and its entities to determine whether the funds requested are aligned to the stated objectives in the strategic plans.

The Committee held a two-day strategic planning session with the Department and its entities on 16 and 17 April 2013. The Department has the responsibility to address the imbalance of poverty, inequality and unemployment through the provision of transport infrastructure and transport services. The main focus of the strategic planning workshop was to assess how the programmes of the Department and its entities relate to the triple challenges taking into account that transport is the heartbeat of economic development and the resources that government has invested for transport infrastructure development.

The Department and the following entities presented their Strategic and Annual Performance Plans: Airports Company South Africa (ACSA), the Passenger Rail Agency of South Africa (PRASA), the Road Accident Fund (RAF), the South African National Roads Agency Limited (SANRAL), the South African Civil Aviation Authority of South Africa (SACAA) and the South African Maritime Safety Authority of South Africa (SAMSA).

The Department oversees the following public entities:

1.1 Airports Company of South Africa (ACSA);

1.2 Air Traffic and Navigation Services Company (ATNS);

1.3 Cross-Border Road Transport Agency (CBRTA);

1.4 Ports Regulator;

1.5 Passenger Rail Agency of South Africa (PRASA);

1.6 Railway Safety Regulator (RSR);

1.7 Road Traffic Infringement Agency (RTIA);

1.8 South African Civil Aviation Authority (SACAA);

1.9 South African National Roads Agency Limited (SANRAL);

1.10 South African Maritime Safety Authority (SAMSA);

1.11 Road Accident Fund (RAF); and

1.12 Road Traffic Management Corporation (RTMC).

2. MANDATE OF THE DEPARTMENT

The Department of Transport is tasked with providing safe, reliable, effective, efficient and fully integrated transport operations that best meet the needs of freight and passenger users. At the same time, the Department is entrusted with providing the infrastructure and services in a manner that is efficient and affordable to the individual and corporate users, as well as the whole economy. In addition, it is mandated with ensuring safety and security across all modes of transport.

In an endeavour to discharge its mandate effectively and efficiently, the Department has organised itself into the following programmes:

· Administration;

· Integrated Transport Planning;

· Rail Transport;

· Road Transport;

· Civil Aviation;

· Maritime Transport; and

· Public Transport.

The following outcomes have been identified to guide and enable the Department to deliver on its mandate:

· Outcome 1: An efficient and integrated transport infrastructure network for social and economic development.

· Outcome 2: A transport sector that is safe and secure.

· Outcome 3: Improved rural access, infrastructure and mobility.

· Outcome 4: Improved public transport.

· Outcome 5: Increased contribution to job creation.

· Outcome 6: Increased contribution of transport to environmental sustainability.

3. POLICY PRIORITIES FOR 2013/14

In terms of the outcomes-based performance management framework adopted by Government, the Department contributes mainly to the development of an efficient, competitive and responsive economic infrastructure network (outcome 6).To achieve this outcome, the Department will focus on:

· Maintaining road infrastructure;

· Upgrading rail infrastructure and services; and

· Constructing and operating public transportation infrastructure.

These policy priorities are in line with what the National Development Plan (NDP) proposes with regard to social and economic development. Indeed, the NDP maintains that sound economic infrastructure is a precondition for economic growth and that the country’s transport infrastructure is a sine qua non of attaining this.

The major recommendations of the NDP are to improve public transport planning and integrate it with spatial planning. It also puts emphasis on asset management and institutional arrangements to ensure safe, reliable and affordable public transport and renewal of the commuter rail fleet. In this regard, the NDP accentuates the need to focus on the Gauteng-Durban Corridor for freight, incentivise public transport and focus on transport systems rather than modes. The need to invest massively in transport is recognised as is the need to carefully prioritise these investments.

In his 2013 State-of-the-Nation Address, President Zuma identified transport as a catalyst for the country’s socio-economic development. In this regard, the President provided the following as niches for achieving this objective:

· Shifting the transportation of coal from road to rail in Mpumalanga in order to protect the provincial roads;

· Improving the movement of goods and economic integration through a Durban-Free State-Gauteng Logistics and Industrial Corridor;

· Upgrading Mthatha Airport runway and terminal and the construction of the Nkosi Dalibhunga Mandela Legacy Road and Bridge;

· Fast-tracking of roads in the North West ;

· Integrating different modes of transport (bus, taxi and train) in Cape Town , Nelson Mandela Bay , Rustenburg eThekwini and Tshwane; and

· Improving the commuter rail network.

4. OVERVIEW OF PROGRAMMES

4.1 Programme 1: Administration

The Administration programme coordinates and renders effective, efficient strategic support to the Minister, Director-General and the Department. It also develops transport skills for the sector. This programme has five sub-programmes:

· Ministry;

· Management;

· Corporate Services;

· Communications; and

· Office Accommodation.

As at 30 September 2012, the Department had an establishment of 767 posts, all of which were funded and 69 posts were additional to the approved establishment. The number of posts filled decreased from 529 in 2009/10 to 524 in 2012/13, as a result of the restructuring undertaken in 2010/11 and 2011/12, when the Department was reorganised around the different transport modes. No appointments were made until the structure was finalised in 2012/13. The Department has now started to fill posts again for the first time since 2009. It is expected that the number of posts will increase from 524 in 2012/13 to 801 over the medium term, 35.1 per cent of which will be in the Administration programme. Administration has grown because it has taken on additional functions such as the programme management unit. Over the medium term, it will capacitate the internal audit unit. The balance of the posts will be in the Rail Transport, Road Transport, Civil Aviation, Maritime Transport and Public Transport programmes which are expected over the medium term to enhance their capacity to oversee transfers to public entities and other levels of government.

4.2 Programme 2: Integrated Transport Planning

This programme manages and facilitates national strategic planning for new projects. It also conducts research and formulates national transport policy, including for the cross-modal area of logistics. In addition, the Integrated Transport Planning programme coordinates international and inter-sphere relations. The programme comprises the following sub-programmes:

· Macro Sector Planning;

· Logistics;

· Modelling and Economic Analysis;

· Regional Integration;

· Research and Innovation; and

· Integrated Transport Planning Administration Support.

The objectives of the programme for 2013/14 are to:

· Facilitate multi-modal transport planning on an ongoing basis by: developing an enabling consolidated transport planning databank by 2015, developing the Multi-modal Integrated Transport Planning draft Bill by 2015 and establishing a national transport planning forum by 2015.

· Assist line function operations with socio-economic analysis of the transport sector by providing economic modelling and transport data on an ongoing basis.

· Reduce cross-border system costs, as well as transit and turnaround times to enhance trade within the Southern African Development Community (SADC) region and Africa as a whole by implementing the recommendations of the freight movement optimisation plan for the border control operations coordinating committee, beginning with the Lesotho border decongestion strategy and completing the study on the harmonisation of standards, by the end of 2013.

· Propose innovative and applicable technologies for improved and environmentally sustainable transport systems through research, innovation, monitoring and evaluation on an ongoing basis.

· Ensure evidence-based transport planning and policy making by conducting a household travel survey and publishing its result by the end of 2013/14 to support public transport and infrastructure investments.

4.3 Programme 3: Rail Transport

The Rail Transport programme facilitates and coordinates the development of sustainable rail transport policies, strategies and systems. Moreover, it oversees rail public entities. Five sub-programmes fall under the Rail Transport programme:

· Rail Regulation;

· Rail Infrastructure and Industry Development;

· Rail Operations;

· Rail Oversight; and

· Rail Administration Support.

The objectives of the programme for 2013/14 are to:

· Upgrade and expand the priority commuter rail corridors by finalising the rail policy and the rail plan strategy by 2014 and ensuring increased service levels and improved system performance and reliability in seven of the 21 priority commuter rail corridors in the country by 2014.

· Increase the accountability for commuter rail service delivery by facilitating the devolution of rail commuter operational subsidies to local government by signing a service level agreement between the Department and the Passenger Rail Agency of South Africa (PRASA) by December 2013 and signing service level agreements between capacitated metropolitan municipalities and PRASA by December 2014.

· Enhance the efficiencies and reliability of the rail transport sector by promulgating a Rail White Paper in 2014, enacting legislation by 2015/16 which drives investment and reform in the rail industry, reducing logistical cost of freight movement from 50.4 per cent to 41 per cent over the medium term and increasing the passenger rail volumes by 2.5 per cent annually.

· Ensure a safe railway environment by developing rail safety policy and regulations and reducing the number of accidents and incidents due to unsafe infrastructure or equipment by 10 per cent by 2014/15, increasing safety compliance through the introduction of a penalty regime by 2014, reducing the total number of incidents and accidents from 3 720 in 2011/12 by 5 per cent in 2013/14 and a further 10 per cent in 2014/15.

4.4 Programme 4: Road Transport

The Road Transport programme is tasked with regulating road traffic management. It is also responsible for ensuring the maintenance and development of an integrated road network through the development of standards and guidelines. In addition, it oversees road agencies and provincial and local expenditures. The programme is divided into five sub-programmes:

· Road Regulation;

· Road Infrastructure and Industry Development;

· Road Oversight;

· Road Administration Support; and

· Road Engineering Standards.

The objectives of the programme for 2013/14 are to:

· Maintain and preserve the existing roads network, including reducing the kilometres of provincial roads in a poor to very poor condition from 65 966 kilometres in 2010 to 51 000 in 2014 by monitoring rural roads asset management systems and provincial roads grants expenditure performance continually and developing and updating guidelines and standards for roads on an ongoing basis.

· Maintain and preserve coal haulage roads through rehabilitating 2 156 kilometres of coal haulage roads by 2014, monitoring the spending and performance by the South African National Roads Agency Limited and the provincial roads departments of Mpumalanga and Gauteng quarterly and engaging with Transnet and Eskom to facilitate the ongoing migration of coal from road to rail.

· Support the implementation of the road infrastructure strategic framework by providing grant funding on an ongoing basis and ensuring the use of updated road asset management systems in all provinces by 2013/14, at local government level for the initial 22 district municipalities by 2014/15, and assisting a further 7 district municipalities in 2013/14.

· Improve rural access and mobility by assisting 21 district municipalities in developing non-motorised transport infrastructure and facilities, developing plans and guidelines for non-motorised infrastructure design, and monitoring their implementation by 2014.

· Support the millennium development goals to reduce accidents and incidents on roads, reducing the 2011 figure of 14 000 people per annum who died on the road by 50 per cent in 2020, by changing drivers’ behaviour through reviewing the existing road safety strategy during the MTEF period.

4.5 Programme 5: Civil Aviation

The Civil Aviation programme is responsible for regulating and investigating the development of an economically viable air transport industry that is safe, secure, efficient, environmentally friendly and compliant with international standards. It also oversees the aviation public entities. The programme has five sub-programmes:

· Aviation Regulation;

· Aviation Infrastructure and Industry Development;

· Aviation Safety and Security;

· Aviation Oversight; and

· Aviation Administration Support.

The objectives of the programme for 2013/14 are to:

· Enhance safety within the aviation sector by improving the quality and credibility of accident and incident investigations through the establishment of an independent accident and incident investigation body by June 2013, and the amendment of the Civil Aviation Act (2009) by the second quarter of 2013/14.

· Improve civil aviation safety and security continually through compliance with existing and new standards and recommended practices of the International Civil Aviation Organisation and the Federal Aviation Administration’s international aviation safety assessment, and through ongoing oversight of the South African Civil Aviation Authority, the Air Traffic and Navigational Services and the Airports Company of South Africa .

· Ensure effective and integrated economic infrastructure by concluding the consultative process for the national airports development plan and obtaining approval for its implementation by 2014.

· Ensure efficiency and safety in the aviation industry by consulting on and finalising the approval of the national civil aviation policy by 2014/15.

· Ensure effective air transport economic regulation through a review of the regulatory framework that promotes the development of the aviation industry by 2013/14.

4.6 Programme 6: Maritime Transport

The Maritime Transport programme coordinates the development of a safe, reliable and viable maritime transport sector. It does so by developing, monitoring and exercising oversight over maritime public entities. Five sub-programmes fall under the Maritime Transport programme:

· Maritime Policy Development;

· Maritime Infrastructure and Industry Development;

· Implementation, Monitoring and Evaluations;

· Maritime Oversight; and

· Maritime Administration Support.

The programme objectives for 2013/14 are to:

 Contribute to a safe, secure, environmentally friendly and efficient maritime transport industry by finalising the maritime transport policy and legislation, which will outline the policy position on the economic drivers in the maritime transport sector, through consultations with stakeholders by 2014.

· Enhance economic development by developing a maritime shipping policy by the end of 2014 that will provide a framework for promoting businesses such as ship recycling and ship repair within the maritime transport industry.

· Improve maritime safety by reducing the number of accidents and incidents (19 and 68 in 2012 respectively), based on marine casualties reflected in the 2011/12 South African Maritime Safety Authority annual report regarding small vessels, by 40 per cent by implementing the inland waterway strategy by 2013/14.

· Improve maritime security and assist in managing safety and security by drafting and signing the memoranda of understanding with relevant stakeholders in maritime security by March 2014.

· Ensure opportunities for the adequate training and skilling of seafarers by completing relevant bilateral and multilateral agreements and drafting legislation on the working conditions and protection of rights of seafarers in international waters by March 2014.

4.7 Programme 7: Public Transport

The Public Transport programme develops norms, standards, regulations and legislation to guide the development of public transport for rural and urban passengers. It is also tasked with regulating interprovincial public transport and tourism transport services. Moreover, the programme monitors and evaluates the implementation of the public transport strategy and the National Land Transport Act (No. 5 of 2009). The Public Transport programme comprises six sub-programmes:

· Public Transport Regulation;

· Rural and Scholar Transport;

· Public Transport Industry Development;

· Public Transport Oversight;

· Public Transport Administration Support; and

· Public Transport Network Development.

The programme objectives for 2013/14 are to:

· Improve public transport access and reliability by developing and implementing integrated public transport networks in 13 cities and monitoring and evaluating progress on an ongoing basis.

· Ensure integrated and optimised public transport services by facilitating the development of integrated rapid public transport networks and feeder and distribution systems in five municipalities by 2014/15.

· Ensure efficient and effective public transport by establishing the National Public Transport Regulator as required by the National Land Transport Act (2009) by 2013/14.

· Develop and increase the equity ownership and Broad-Based Black Economic Empowerment (B-BBEE) in the public transport sector through the implementation of the industry development model to empower taxi and small bus operators by establishing cooperatives and by coordinating skills development by 2014/15.

· Align and integrate the taxi recapitalisation programme with national and provincial rail services, metropolitan rapid public transport corridor services and provincial bus services by reviewing the taxi recapitalisation project by 2013/14 to assess its alignment with the public transport strategy.

· Ensure the improved scholar transport system by developing scholar transport norms and standards by 2013/14.

5. CONSIDERATION OF STRATEGIC AND ANNUAL PERFORMANCE PLANS FROM THE PUBLIC ENTITIES

5.1 AIRPORTS COMPANY SOUTH AFRICA (ACSA)

The Airports Company South Africa is regulated in terms of the Airports Company Act (No. 44 of 1993) and the Companies Act (No. 61 of 1973), and is listed as a schedule 2 public entity in terms of the Public Finance Management Act (No. 1 of 1999). The Airports Company South Africa was formed to own and operate the nine principal South African airports, including the three main international gateways of OR Tambo, Cape Town and King Shaka International Airports . Moreover, ACSA provides secure infrastructure for airlines to transport people and goods and extends its responsibilities to include promoting tourism, facilitating economic growth and job creation, and protecting the environment.

Over the medium term, ACSA’s main strategic goals are to position itself strategically for long-term sustainability and to improve its operations. This involves analysing the market, refining its business and revenue models, developing a comprehensive stakeholder management strategy, and improving short term human resource performance

5.2 PASSENGER RAIL AGENCY OF SOUTH AFRICA (PRASA)

The Passenger Rail Agency of South Africa’s mandate is contained in the Transport Services Act (No. 9 of 1989), as amended in November 2008. The Act requires the agency to, at the request of the Department of Transport, provide rail commuter services within and to and from South Africa in the public interest. In consultation with the Department, PRASA is also entrusted with providing long haul passenger rail and bus services within, to and from South Africa .

The Agency’s strategic goals over the medium term are to improve the quality of services, continue with its modernisation strategy, which entails acquiring new reliable trains and upgrading depots, stations, signalling and all other infrastructure and to achieve financial sustainability by improving the generation of revenue. Its performance targets for 2013/14 include: completing negotiations and contracts for its Rolling Stock Fleet Renewal programme, signaling programme (Stage 2 – KwaZulu-Natal (KZN); Stage 3-Western Cape and Stage 1 Phase 2: Gauteng) and the depot modernisation programme, completing of two rail extensions, namely the Bridge City and Greenview – Pienaarspoort railway line, and completing 14 station upgrades and 25 station improvements. It will also continue with its human capital development plans which include learnerships and building capacity for its rolling stock programme .

The entity is not generating adequate cash to meet its legal obligations. It is facing an immediate cash challenge due to significant increases in the cost of energy as approved by the National Energy Regulator of South Africa (NERSA) for Eskom, higher rates and taxes for its property portfolio including the rail tunnel municipal rate increases, higher personnel costs as negotiated with unions, as well as the increased cost of material.

5.3 ROAD ACCIDENT FUND (RAF)

The mandate of the Road Accident Fund, derived from section 3 of the Road Accident Fund Act (No. 56 of 1996), is the payment of compensation for loss or damage wrongfully caused by the driving of motor vehicles in South Africa .

The Fund’s strategic goals over the medium term are to: develop a legislative dispensation that is aligned with the principles of social security, ensure that the organisation is solvent, liquid and sustainable by 2020 and ensure that the organisation is a customer centric, operationally effective and efficient by 2017.

Its most pressing objectives are r educing the number of unfinalised claims, actively promoting and processing direct claims, managing the liability, reducing legal costs, aligning the organisation to current and future service requirements and improving service delivery.

In recent years, the provision for claims incurred has grown substantially due to the number of open claims, a higher average cost of a claim, interest and the reopening of previously finalised claims. The Fund finds itself in a position where it has a large claims backlog.

5.4 SOUTH AFRICAN NATIONAL ROADS AGENCY LIMITED (SANRAL)

The South African National Roads Agency Limited was established by the South African National Roads Agency Limited and National Roads Act (No. 7 of 1998). The Act makes the Agency responsible for the planning, design, construction, operation, management, control, maintenance and rehabilitation of the South African national road network, including the financing of these functions. This includes both toll and non-toll roads.

The Agency’s main strategic goal over the medium term is to provide effective strategic road infrastructure to facilitate development, commerce, mobility and access. Over the medium term, the Agency will continue with its preventative maintenance approach as it expands its network to the extended mandate of 35 000 kilometres. It will also roll out the Gauteng e-tolling system, and is awaiting ministerial approval to proceed with the implementation of further toll road projects throughout the country.

The Agency’s income consists mainly of revenue generated from toll fees and government allocations for the toll road network, as well as government allocations for the upkeep of the non-toll road network. The 78.4 per cent of revenue comes from national government transfers.

5.5 SOUTH AFRICAN CIVIL AVIATION AUTHORITY (SACAA)

The South African Civil Aviation Authority was established in terms of the South African Civil Aviation Authority Act (No. 40 of 1998). The Act requires the authority to control and regulate civil aviation safety and security, oversee the implementation and compliance with the national aviation security programme, oversee the functioning and development of the civil aviation industry, and promote civil aviation safety and security.

The Authority is also mandated to promote, regulate, support, enforce and continually improve levels of safety and security throughout the civil aviation industry, which includes safety and security oversight of airspace, airports, aircrafts, operations and personnel. This is to be achieved by ensuring compliance with the International Civil Aviation Organisation Standards and recommended practices in the context of the local environment.

The Authority’s main strategic goals between 2012/13 and 2017/18 are to enhance the aviation safety and security environment, and intensify regional and international cooperation. The International Civil Aviation Organisation (ICAO) compliance audit will take place in this financial year. A major challenge faced by the entity is the attraction and retention of core skills to the industry.

5.6 SOUTH AFRICAN MARITIME SAFETY AUTHORITY (SAMSA)

The South African Maritime Safety Authority was established by the South African Maritime Safety Authority Act (No. 5 of 1998). It is mandated to promote South Africa ’s maritime interests, ensure the safety of life and property at sea, and prevent and combat the pollution of the marine environment by ships.

The Authority’s main strategic goal over the medium term is to continue improving maritime safety and security and contribute to the transformation and expansion of the maritime industry which involves developing the relevant skills for the sector and raising awareness in government and society about maritime issues

Challenges experienced by the entity are i ncreased frequency of incidents involving uninsured and substandard ships, flouting of mandatory safety requirements, the speed of processing required enabling legislation and the ratification of international and regional instruments. Funding for Emergency Casualty Response remains a big challenge at approximately R1,2 million per day with no clear arrangement of where the funding should come from and bearing in mind that the casualty response infrastructure (mainly the response vessel) has reached its end of life.

Other challenges are that the maritime communications infrastructure and governance systems have reached the end of useful life, access to port and port infrastructure to support the casualties is inadequate, regional capability in enforcing the environmental standards is inadequate to deal with oil spills emanating outside the borders, as well as substandard ships that cause problems around the South African coastline and the non ratification of International Instruments aimed at mitigating maritime pollution incidents.

6. KEY FINDINGS

The Committee formulated its findings in the context of the 2003 National Household Survey on Public Transport which found that:

6.1 Communities in South Africa found transport expensive, unsafe and unreliable. They further said that it took too long to travel due to congestion and unscheduled transport.

6.2 There was a lack of integrated transport infrastructure with long periods experienced for interchange between the modes of transport.

7. OBSERVATIONS

In its Strategic Planning Workshop, the Committee raised what it had observed through its study tours and oversight visits:

7.1 The non-alignment of some core functions of the Department under other Provincials Departments such as roads, which falls under the Public Works Department in the Eastern Cape and maritime which falls under the Department of Economic Development in KwaZulu-Natal. This situation is creating challenges with regard to the oversight functions of the Committee, as well as with the alignment of programmes and models with the Department of Transport.

7.2 The uneven levels of performance between the Department of Transport and its entities in instances where the entities were outperforming the Department. This created a situation where the Department was following rather than leading. The Committee also observed that the support system of the Department was not matching the needs of the entities.

7.3 The allocation of financial resources does not meet the needs of the Department, such as the Rural Transport Plan which was approved by Cabinet, but not funded by National Treasury, thus creating challenges of inadequate transport for rural communities.

7.4 The Committee observed a lack of a uniform approach in addressing pothole repairs and road maintenance, including the relationship of S’hamba Sonke to poverty reduction and job creation, as well as the improvement of access roads to schools, clinics, hospitals, police stations and places of worship.

7.5 The Committee further noted the lack of a transport subsidy that targets commuters, as opposed to service providers, as the current subsidy does not cover all transport modes, therefore having no impact on making all modes of transport accessible to the poor.

7.6 The Department focused more on policy formulation and less on coordination and the development of an integrated transport master plan, as well as the transport development model.

7.7 The Committee was concerned about the inability of low-fare airlines to sustain themselves in South Africa .

7.8 The Committee noted that some transport modes were not accessible to people with disabilities.

7.9 The Committee noted that a lack of proper intercom systems and electronic signage at train stations were causing frustration and anger for commuters.

7.10 The Committee noted the lack of pedestrian bridges to schools, as highlighted by the Department, and the lack of a uniform approach to road maintenance. The Committee reiterated that quality control and an accreditation system for road repairs should form the basis for road maintenance.

7.11 The Committee noted the lack of information on Shova Kalula and queried the Department’s decision to have the manufacturing sites in urban areas while the project was targeted at rural areas.

7.12 The Department declared 2013 the Year for Maritime, but the Committee expressed its dismay that this was only communicated to it in April 2013.

7.13 Policy formulation in the Department took too long. The maritime and scholar transport policies have not been finalised after 5 years.

7.14 The Committee remained concerned that some provinces were not using S’hamba Sonke funding for its intended purpose.

7.15 The Committee noted that each transport entity contracted consultants to formulate its own cooperative development plans. The Committee will explore ways to align these plans while the Department identifies a niche market within industry for cooperative development, prioritising those aimed at reducing poverty and creating employment with the aim of the exiting of poor families off social development grant and indigent registers.

8. RECOMMENDATIONS

The Committee recommends that the Minister ensures the following for the 2014/15 financial year:

8.1 Reviewing the institutional arrangements so that the core business of

transport falls under the Department of Transport, even at provincial and local government level.

8.2 Developing a measurable strategy for reducing road accidents.

8.3 That National Treasury increases its financial allocation for the Rural Transport Plan.

8.4 The prioritizing of pothole repairs, road maintenance and access roads to public facilities in the context of community development to address unemployment and reduce poverty.

8.5 The establishment of a passenger-based transport subsidy.

8.6 Building internal capacity in engineering as part of the Department’s skills development programme.

8.7 Reducing the duration of the Department’s policy making process.

8.8 The Department should investigate means to make it more attractive for low-fare airlines to survive in the South African business environment. The Department should also place universal access of transport to all high on its agenda and ensure accessibility of all modes of transport to the poor.

8.9 The Passenger Rail Agency of South Africa has to ensure that proper intercom systems and electronic signage are installed at all its stations to improve its communication with commuters.

8.10 The Department should follow up on (1) the proposed plan of escalating driver training to ensure that learners obtain driving licences by the time they matriculate and (2) the conditional licensing of newly qualified drivers.

Report to be considered.