/ 8 October 2003

Govt shifts deadline for taxi recapitalisation

The long-awaited government taxi recapitalisation programme will once again take another two years to come to fruition after the South African Transport and Trade and Industry Departments agreed with a taxi body to yet again postpone the cut-off dates for the programme rollout.

Trade and Industry Minister Alec Erwin, Transport Minister Abdulah Omar and the South African National Taxi Council (Santaco) on Wednesday agreed to postpone the programme’s cut-off dates to beyond October 2006 after an memorandum of agreement (MOA) was signed.

The Department of Transport said Santaco has been in negotiations with Omar on the shift of the 2004/2006 cut-off dates for the bidders for the 16 seater taxis as currently stipulated in the National Transport Transition Act (NLTTA) of 2000.

An agreement was reached between Santaco and the Committee of Ministers of

Transport (Mincom) that the cut-off date as currently contained in the NLTTA be

shifted.

According to the department the signing of the MOA signifies a milestone of the negotiations between the taxi industry and government on the taxi recapitalisation progamme.

On September 12 the bidders for the 18 seater minibuses provided government with their Best And Final Offer covering technological, financial and economic proposals as required by the tender.

Government said it has prepared itself to give undivided attention to the process, which includes the evaluation of bids, negotiation with bidders, and covering affordability issues, which are a primary focus for the operators and commuters.

The steering taxi recapitalisation committee which comprises of the national Departments of Transport, Trade and Industry, Treasury, Minerals and Energy, and the Presidency (Office of Status of People with Special Needs), will ultimately forward recommendations to Cabinet in as far as the bidding outcome.

Cabinet will then, given the recommendations which may impact on financial, safety, legislative and institutional arrangements, ascertain the assistance that needs to be given in realising the roll-out programme of recapitalised minibus taxis.

After the bidding process Omar intends to gazette compulsory specifications for minibus taxi vehicles to operate in the country as required by the NLTTA.

The MOA signed on Wednesday sets parameters of co-operation and implementation of the taxi recap programme between government and the taxi

industry.

It commits both government and Santaco on matters related to economic empowerment emanating from the taxi recapitalisation program as agreed between the two parties.

The signing of the MOA will be amplified by the identification of a mechanism for the distribution of the benefits for members of the taxi industry through Santaco accrued from the taxi recap programme after due consultation with the Santaco constituency.

In order to enhance safety in public transport and to assist current minibus taxi operators to recapitalise their existing vehicles, government together with the taxi industry agreed to introduce the taxi recapitalisation programme through which new purpose-built vehicles will be provided.

According to Section 31 of the NLTTA, Omar can determine a date from which existing minibus taxis would not be allowed to be used as public transport vehicles.

For this reason, regulations to set the date for the phasing out of the current minibus-taxi vehicles as required by the NLTTA have to be issued.

The Minister met with his provincial colleagues on Tuesday to consider amongst other things Santaco’s request that government considers to extend the deadlines of 2004/2006 as prescribe in the NLTTA.

Subsequently Omar and his provincial Ministers of Transport met with Santaco on Wednesday, wherein an agreement was reached to shift the deadline date beyond October 2006.

The transport department said the finalisation of the future dates are currently being attended to by government in consultation with Santaco considering the legislative procedures that such processes have to follow.

After due process has been followed, the Minister of Transport will publish the regulations stating the new dates.

“Notwithstanding the decision to extend the deadline for the introduction of the new taxi vehicles, government remains committed to the taxi recapitalisation program which will ultimately benefit operators and commuters.” – I-Net Bridge