One of the major issues holding up the announcement of South Africa’s much-delayed taxi recapitalisation programme is an assessment of the costs of the subsidy scheme, which applies to the purchase of the envisaged new 18- and 35-seater taxis.
The government has already budgeted R4-billion for a 20% subsidy to scrap existing taxis and the trading-in of these vehicles for a new one provided by a company — or companies — that wins a government tender. The subsidy could be as much as R40Â 000 per new taxi.
This emerged in discussion between officials of the national Department of Transport — led by Deputy Director General Jerry Makokoane, who is in charge of public transport and planning — and MPs serving on the ad hoc transport portfolio committee led by African National Congress MP Jeremy Cronin.
The government has for five years been struggling to implement the programme — which will replace the aging fleet of nearly 100Â 000 16-seater taxis nationwide. The government has engaged in extensive negotiations with the taxi industry.
The four companies still in the race to provide the new minibus vehicles are India’s Tata, Kwoon Chong Mudan Automobile, Daimler Chrysler South Africa and Iveco.
Asked why the implementation of the programme is being further delayed (in February former trade and industry minister Alec Erwin pledged that the successful bidder for the recapitalisation programme will be made in March), Makokoane said “there are substantial issues to consider”.
He said: “We have got to bear in mind the impact on the ordinary person and what the economy will be able to carry.”
Makokoane said a project team has completed evaluations and a steering committee will finalise a report on the project team’s recommendations.
“The bids include extensive technical, financial and empowerment issues. What is critical is the subsidy aspect and what the government can afford,” he said, stating that an additional funding requirement above the R4-billion mark will place a further burden on the fiscus.
Noting that the programme could still be implemented this year, Makokoane told committee members that a conditional approval of new taxi suppliers will be followed by homologation and endurance tests.
Makokoane emphasised that the new vehicles will be diesel-driven as it is a more efficient and cost-effective fuel.
Cronin also noted that the committee will have to devote much attention to public transport after the July recess this year. He said the issue of how the subsidy will work is a work in progress and the modalities of the system need to be further debated.
The tender system has also been delayed, according to Makokoane, owing to the delinking of the electronic management system — which checks the taxi routes — from the recap process.
Democratic Alliance transport spokesperson Stuart Farrow said all eyes are focused on Minister of Transport Jeff Radebe’s upcoming budget vote in Parliament on June 17. He said a uniform system of subsidy could possibly be in the minds of the new ministry.
He noted “the shocking” figure produced by the department that bus commuters are being subsidised at a rate of R198 a month on 7Â 500 buses — although 2Â 600 buses are, according to the department, unsubsidised. Taxis, in contrast, are not subsidised at this stage at all.
Farrow also suggested that instead of taxi operators having to buy into the recap system by buying a new approved taxi to obtain subsidies, they should be given the choice to upgrade their present fleets or buy 10-seater taxis.
He also argued that a system where a voucher could be bought by the consumer — which would give him or her access to rail and road, bus or taxi — should be part of the public transport thinking. — I-Net Bridge