Chairperson and hon members, the Additional Adjustments Appropriation Bill was tabled in Parliament on 22 February 2012 by the Minister of Finance during the tabling of the 2012 Budget.
The objective of the Bill is to provide for an additional allocation of R5,75 billion to the Department of Transport in the 2011-12 financial year to support the SA National Roads Agency Limited, Sanral, to pay debt related to the Gauteng Freeway Improvement Project.
In his 2012 Budget Speech, the Minister of Finance stated that the R5,75 billion will contribute to a further reduction of the toll burden. That means it will reduce the debt of R20 billion to be repaid through the toll system and will allow for greater discounts for regular road users.
We will remember, Chairperson, that all forms of public transport - such as taxis, buses and other forms that ferry workers between their workplaces and their homes - are exempted from paying toll road fees.
The R5,75 billion contribution will translate into the following tariff reductions. These tariffs are actually reduced for all those who have registered for e-tags. Therefore most of those who have registered for e- tags will pay a reduced tariff. For example, motorcycles with e-tags will pay 20 cents per km; light vehicles with e-tags will pay 30 cents per km; nonarticulated trucks with e-tags will pay 75 cents per km; and articulated trucks with e-tags will pay R1,51 per km.
This adjustment, therefore, is made in accordance with section 30 of the Public Finance Management Act, Act 1 of 1999, which provides for the adjustment due to significant and unforeseeable economic and financial events affecting fiscal targets set by the annual Budget.
The Select Committee on Appropriations has considered the Additional Adjustments Appropriation Bill (2011-12 Financial Year) and moves for the House to adopt the Bill. I thank you.
Debate concluded.
Declarations of vote:
Chairperson, I just want to register the objection of Cope to this Bill. We are totally against this thing. Like the Congress of South African Trade Unions, Cosatu, we say that we are not cows to be milked like that. Therefore, we are against this e-tolling system and we are going to vote against it. Thank you very much.
Chair, the additional appropriation of R5,75 billion in the current year, to be used to subsidise the Gauteng Freeway Improvement Project, is supported with reservation.
The DA is concerned about the ad hoc way in which the funding of this project is being handled and the general lack of a clear policy on the balance between user-funded roads and general, fiscus-funded roads.
The fuel levy is, in fact, a user-pays source of funds just as much as a toll road is a user-pays source of funds. Essentially, motorists are being asked to pay twice for the Gauteng Freeway Improvement Project. It is our view that this is double-dipping.
There needs to be a serious debate on the source of funds for road construction and maintenance that takes into account both the responsibility of the state to provide for the infrastructure best possible as well as the user-pays principle.
The DA is concerned about the very high costs associated with the collection of the toll fees on the Gauteng project as compared with the income to be generated.
Will the collection costs for vehicles without e-tags actually be 30% or less of the revenue collected? Will the sheriff's offices be able to cope if the mass disobedience campaign proposed by Cosatu and others is successful?
The funding of the Gauteng Freeway Improvement Project has been badly handled and surely has taught the lesson that a clear policy on the funding of capital road projects as well as the maintenance of roads is required.
Urgent action is required in order to stem the rapid and very expensive deterioration of the country's extensive road network. I invite hon members to take a drive from Vrede to Memel in the Free State to see an example of an excellent road that has become a pothole nightmare as a result of neglect and a lack of funds for maintenance. Thank you, Chairperson.
Chair, if one is a road user who uses the road between Johannesburg and Pretoria, or even if you use the N12 from O R Tambo International Airport, one would experience that one no longer spends time on the road as was the case in the past. Therefore I think that we must also note that difference.
For that reason, Chair, I think we have to be honest in the Council. I think that as a country we need money. If we have to develop the country, we won't develop it from leaves that grow on the trees. We do need to generate some kind of income.
We have noted how the Minister reduced the fees after the outcry from around April last year. I want to say that on the radio station, Umhlobo Wenene, there used to be an advert called nesisulu siyahlawulelwa [nothing is for free].
I'm not going to translate it. I hope the interpreters have done so correctly.
With those few words I want to say that the ANC supports the Bill because we think if we still want to continue with the business and make sure that doing business in South Africa becomes easier, the best mode would be by rail because it is going to be refurbished, but the roads are still the priority for now and for those reasons I urge the parties in the House to reconsider and support the Bill.
Bill agreed to in accordance with section 75 of the Constitution.
Of course, we note the objection of Cope and that of the DA. Of course, it's not a blanket objection; it is made with reservations and should be noted in that context.
Chair, on a point of order: From where I was seated, it sounded to me like the noes were louder than the ayes. [Laughter.]
Is that from where you are seated? Okay, sit down and maybe you will hear better.
I don't know if we can formally vote on the matter again.
Hon member, will you sit down please because, from where I'm seated, I heard something else. [Laughter.]