Hon Chairperson of the NCOP, Deputy Chairperson of the NCOP, hon Chief Whip of the NCOP, hon members, I hereby on behalf of the
Select Committee on Economic and Business Development table the Report on the National Land Transport Amendment Bill
The purpose of this Bill seeks to amend the National Land Transport Act
5 of 2009 to insert certain definitions and amend others; to provide for non-motorised and accessible transport; to bring the Act up to date with developments since the implementation of the Act; to provide for certain powers of provinces to conclude contracts for public transport services; to expand the powers of the Minister to make regulations and introduce safety measures.
Further, the Bill seeks to prescribe criteria and requirements for municipalities to enter into contracts for public transport services; to amend other transport related legislation to bring it into line with the Act.
Furthermore, the Bill seeks to clarify or simplify various provisions or solve problems that have arisen since the implementation of the Act; and to provide for matters connected therewith.
The process that was followed by the committee is as follows: the Bill was referred to the Select Committee on Economic and Business
Development on 24 April 2018. The Department of Transport was invited to brief the committee on 05 June 2018.
The committee advertised the Bill for two weeks inviting all interested stakeholders to submit written submissions. The advert indicated that the stakeholders could make written as well as oral submissions. Permanent delegates also briefed their provinces on the Bill.
The committee facilitated public participation, and received eleven submissions, including a submission from the South African Local Government Association, SALGA, prior to the closing date. One submission was received after the closing date. All of the submissions were considered. Further, all submitters were invited to make oral submissions. Only nine submitters availed themselves to make oral presentation and three submitters declined. On 9 October 2018, Department of Transport responded on the submissions received, and 12 and 19 February 2019, the committee deliberated on the content of the Bill.
Submission from Salga contented that some clauses in the Bill are unconstitutional. I am highlighting the Salga submission because it's unique place in the functioning of the NCOP.
The committee requested advice from parliamentary legal services and a parliamentary legal advisor made a presentation of the legal opinion to the committee. Salga expressed its disagreement with the advice given by the parliamentary legal advisor in the committee.
The committee then directed the parliamentary legal advisor, state law advisor, the department and the legal representative from Salga to further observe and reflect on the constitutionality of the Bill. The parliamentary legal advisor and state law advisor, except the Salga's legal representative gave a feedback further attesting that the proposed amendments in the Bill are consistent with the Constitution, in that;
a) The Minister is empowered to initiate legislation on a Schedule 4(b) matter that is the Municipal Public Transport, but may not implement the legislation as the implementation is the competence of the local sphere of government;
b) The Minister is empowered to develop norms and standards pertaining to the implementation of the legislation by the local sphere of government.
c) The prescribed criteria and requirements referred to in the Amendment Bill form part of the broader framework developed by the Minister that must be met and followed by municipalities in order to enter into new contracts for public transport and are not unconstitutional.
d) The Minister should guard against intruding on the powers of the local sphere of government in the implementation of the legislation. The power to implement the legislation vests with the local sphere of government.
e) The Bill is aimed at developing a broader framework for municipal public transport without interfering with the powers of the local sphere of government.
f) Therefore the Bill is constitutional.
g) The Minister will publish regulations and it is critical that the local sphere of government is vigilant and ensure that these regulations give the local sphere of government sufficient space to implement this legislation.
The committee applied its mind on the issues raised by
Salga; however felt the legal opinion obtained from the parliamentary legal services stand. Salga remains our strategic partner. Therefore, any issues raised by it, which pose a risk to cooperative governance and congenial relations between the spheres of government need to be treated with sensitivity.
The Committee further reports that all the issues raised during public hearings were considered including the negotiating mandate from the provinces.
With regard to the final mandates, seven final mandates were received and only the Western Cape Province that mandated its delegation not to support the envisaged Act. The final mandates from the Free State and North West Provinces could not reach the committee on time, but we understand that later they were submitted to the office of the Chairperson and that both provinces support the Bill. We therefore, on behalf of the committee recommend that the Bill be adopted. I thank you.
Debate concluded.
Declaration(s) of vote
Hon Chairperson, hon members, fellow South Africans, any responsible government across the world has the responsibility to ensure that their country has reliable, well-functioning transport system in place. It is really part of the very key building blocks supporting our hybrid economy.
In South Africa, the National Land Transport Act is the law that regulates all forms of road public transport. It is now the first time that this law is under review since it came into effect in 2009. Amendments to this Bill are very important, but even more important, is a responsibility to ensure that the result of these amendments will be a well- functioning public transport system serving the community and paving the way towards a growing economy.
The Bill and its impact are important to all South Africans. Even up to this day, there are still concerns whether proper public import was obtained and considered. There are still concerns about the Bill having possible unintended consequences if it becomes law. There are also still questions about the constitutionality of this Bill.
The last concern is shared by various institutions and organisations like SA Local Government Association, Salga. Despite all the voices cautioning about the constitutionality, the department convinced the
committee to press ahead along the lines of their interpretation, ignoring seven previous judgements of the Constitutional Court in this regard.
Chairperson, the outcome is predictable. The Bill is also not progressive enough to accommodate new technology and modern business models. E-hailing operators are not well-catered for in terms of safety issues, pick-up points, etc. The implementation of this Bill will therefore severely restrain these operations and rob South Africans of a competitive, modern land transport system.
During the process getting us up to this point where we are today, the Western Cape supported the negotiating mandate, but could not support the amended Bill referred to them to consider for the final mandate. Chairperson, The Western Cape does not support the Bill. I thank you.
Chairperson and hon members, as the ANC we support the Bill for four simple reasons. Firstly, the amendments to the Act will ensure that we bring the South African transport trajectory in line with international best practice and the Fourth Industrial Revolution. It will further ensure that government consolidates systematically the transport function across the three spheres of government.
The Bill will further provide for, and regulate electronic hailing services to enable operators to operate with an app, as well as to empower the Minister to prescribe requirements, standards applicable and offences for the use of e-hailing technology-enabled applications.
This dispensation will ensure that we bring the much-needed stability between the meter taxi and the electronic hailing taxi industry which are characterised by uncertainty, conflict and criminality. Once enacted, this law will provide for temporary licences to be obtained over the counter by a shortened procedure from an official or a member of the regulatory entity delegated by the entity, and a shortened process on application to replace a vehicle specified in the operating license.
It will further ensure that provinces are given an opportunity to conclude new contracts for public transport services in areas where municipalities do not comply with the prescribed requirements. This is more appealing to us because it augurs well with the notion of co- operative governance as well as the support that provincial government, in particular, must give to municipalities in terms of the Constitution.
We therefore call for the support and passing of the Bill. I thank you, Chairperson.
Chair, as Salga we just want to make a brief declaration. Thank you, Chair, for giving us as Salga an opportunity to voice our concern about this National Land Transport Amendment Bill. I am also referring to our interaction with you, and also the opportunity given in the select committee on 19 ... [Interjections.]
Could you please speak into the microphone?
Yes, I'm saying again that an opportunity given to us at the select committee meeting on 19 March. Although we accept and also understand the mandatory processes of the NCOP, our view is that the approach taken on the amendment Bill, fundamentally changes the existing National Land Transport Act in ways we believe are inconsistent with both the Constitution and the sound public transport management.
The most contiguous aspect of the Bill in our view is that the province becomes the default sphere of government for concluding subsidised public transport contracts and secondly that, a municipality may only
enter into those contracts if given permission by the Minister. The most important issues here are two things, and one of them is the municipal public transport in terms of the Constitution falls within the jurisdiction of the local government.
However, the Bill provides that all public transport contracts are in principle concluded by the province. It goes without saying that some of those contracts will fall within the scope of municipal public transport. The Bill, therefore, abolishes the distinction between the two separate constitutional competencies, namely public transport and municipal public transport, and includes them both under provincial jurisdiction.
The Constitution makes the decision and in our view, it is not for the Parliament to effectively abolish it. The Bill effectively removes powers that cities are currently exercising, including the contracting of services such as MyCiti, Rea Vaya and Go Durban.
Whilst we are preciously concerned about municipal capacity, the role of national and provincial government is to support municipalities as required by section 154 of the Constitution, and not to deprive them of their powers. [Interjections.]
The time allocated has expired.
We submit that the amendment Bill seeks to deprive municipality of their constitutional function. As Salga, it is our view that the Bill is unconstitutional. [Applause.]
Thank you, sir. Just for roundedness, we must say that these matters were brought to the attention of the committee, the matters were considered and legal advice was retaken on the matter. Hon members, we shall not proceed to the manual voting on the question. Hon Khawula, do you want to say something?
Chair, I just want to find out if the Chair will allow the declarations by the Western Cape and the Limpopo provinces to stand because when the members were making them, they were making them on the basis of their parties. They made mention of their parties whilst presenting their declarations. So, I just want to find out if you will allow them to stand?
Thank you sir, if you would have noticed, I actually invited the provinces to make the declarations and it is that recognition that even though they spoke on behalf of their
parties, they were speaking on behalf of their provinces as well. Thank you very much.
Question put: That the Bill be agreed to.
[Take in from Minutes.]
Bill accordingly agreed to in accordance with section 65 of the Constitution.