Bus subsidies cost the national Transport Department R2,17-billion in 2003/04, according to the department’s annual report for 2005.
The report, tabled in Parliament, noted that Gauteng received the largest cut of the nine provinces — with R788-million — followed by KwaZulu-Natal with R452-million. The Western Cape received R380-million.
Subsidies to the South African Rail Commuter Corporation amounted to nearly R2,5-billion in 2003/04 of which R655-million went on capital spending and about R1,8-billion on current expenditure. The bus subsidies were listed only as current expenditure.
Earlier this year Transport Minister Jeff Radebe said his department wanted to move with speed to transform an “outdated system” of short-term bus subsidies which were to cost the fiscus R2,28-billion in 2005/06. He said there was a key need to get rid of the month-to-month interim contracts that dominated the bus industry. – I-Net Bridge