NATIONAL ASSEMBLY
FOR WRITTEN REPLY
QUESTION NO 1034
DATE REPLY SUBMITTED: THURSDAY, 19 NOVEMBER 2009
DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: FRIDAY, 28 AUGUST 2009
(INTERNAL QUESTION PAPER NO 12 â 2009)
Mr P D Poho (Cope) asked the Minister of Transport:
(1) (a) Why is it necessary for the SA National Roads Agency Ltd (Sanral)
to market itself via media advertisements and (b) what is the planned
duration of the campaign;
(2) whether an advertising agency or consultant was used for the creation
and placement of the advertisements; if not, what is the position in
this regard; if so, what is the (a) name of the advertising agency or
consultancy, (b) budget for (i) the campaign for advertising agents
and (ii) consultantsâ fees and (c) cost of (i) media space and (ii)
airtime on electronic media;
(3) whether there are any measurable expected outcomes for the campaign;
if not, why was such expenditure incurred in the current economic
circumstances; if so, what are the measurable outcomes?
NW1272E
REPLY:
The Minister of Transport:
1) (a) The South African National Roads Agency Limited (SANRAL) is
responsible for the operations and maintenance of more than 16 000
kilometres of national roads. It obtains its funding through two main
sources, namely grants from National Treasury which are used to fund
the non-toll roads and raises funds from the capital and money markets
for toll roads. SANRALâs core business focus is on non-toll and toll
roads.
As the Honourable Member is aware, each sphere of Government is
responsible for a portion of the vast network of roads in South
Africa. Therefore, it would be appreciated that it is necessary to
create public awareness of SANRAL and its mandate, because recent
research undertaken has shown that the majority of South Africans are
unaware of SANRAL and its mandate. Also to inform the public of road
closures, et cetera.
The following objectives were identified as vital steps in the journey
towards the awareness campaign:-
Public Awareness
â Create broad-based positive awareness of the value of roads as a
national asset.
â Share SANRALâs vision to meet the needs of a developing country
and growing economy.
Educate and inform
â Educate the nation on the need to alternative sources of funding
roads and reducing the dependence on the fiscus.
â Keep the public informed about toll road developments,
specifically Electronic Toll collection, new projects and public
transport alternatives.
Project Specific Information
â Advertisements that have to comply with legislative requirements,
e.g. advertisements for environmental impact assessments, et
cetera.
â Disruptions to traffic flow.
(b) The planned duration of the campaign is three years.
This is divided into three phases, namely:-
Public Awareness
April 2009 â August 2009: Create awareness of roads as a national
asset to shift public thinking.
Educate and Inform
September 2009 â January 2010: Education initiatives aimed at creating
an understanding of the national road network in terms of both toll
and non-toll roads.
Toll Activation
February 2010 â May 2010: Project specific information aimed at 2010.
August 2010 â March 2011: Project specific awareness and education
campaign aimed at Gauteng users for the GFIP Open Road Tolling.
Evaluate and Revise
May 2010 â September 2010: Revise information and evaluate going
forward.
(2) (a) The name of the advertising agency is TBWA\Hunt\Lascaris
(b) (i) The budget for media and production is R33 million. However,
it must be borne in mind that SANRAL can adjust this budget as
necessary.
(b) (ii)
Agency resource budget as per financial years
The following amount is budgeted for each year in rand, excluding VAT:-
Year one Year two Year three
2008-2009 2009-2010 2010-2011
R7 933 920.00 R7 146 381.00 R6 411 021.00
(c) (i) and (ii) Cost of media space/airtime
Print/press, including public announcements in respect of road
closures, tenders, EIA and intent to toll ads. With regard to public
relations in support of the marketing and advertising campaign, the
return on investment (added valued not paid for) was approximately R4
489 602.15
Electronic media (radio), including road safety notices and traffic
sponsorships
(actual + planned) amounts to R8 567 337.00. With regard to radio,
the advertising agency negotiated an additional R1 million worth of
airtime as added value (not paid for).
(3) A qualitative and quantitative research was conducted prior to the
commencement of the campaign to establish benchmarks as follows to be
tracked post-launch:-
⢠Public awareness of the economic value of national roads, both non-
toll and toll roads.
⢠Awareness of SANRAL.
⢠Public response/acceptance of Electronic Tolling, specifically
open road tolling.
In anticipation of open road tolling going live in 2011, the intensive
account registration drive will be launched in 2010. Registered
account holders will become a key measurable outcome, in addition to
those items listed above. This campaign has been planned and budgeted
for. However, there is sufficient flexibility in the budget in order
for SANRAL to adjust its spending should the need arise.