Hon Speaker, hon members, distinguished guests, and ladies and gentlemen, the Transport Laws and Related Matters Amendment Bill of 2012 has been necessitated by the development of the Gauteng Freeway Improvement Project, GFIP, and future plans for the development of road infrastructure in the Republic.
The SA National Roads Agency Limited, Sanral, was established in terms of Sanral and the National Roads Act of 1988. The South African National Roads Agency Limited Act was brought into operation on 1 April 1998. It established Sanral to manage and control the Republic's national roads system and to take charge of the development, maintenance and rehabilitation of national roads within the framework of government policy. Apart from the physical infrastructure, the GFIP will result in the operation of a road network that involves the utilisation of intelligent transport systems. An important component of the network is the electronic toll collection system.
The Bill is essential for enabling the appropriate implementation of the electronic toll collection system. These measures are essential for implementing the GFIP, which is meant to upgrade transport infrastructure and to facilitate the provision of public transport and other projects in the Gauteng province.
The Bill seeks to do the following: firstly, to provide more effectively for the collection of toll fees; secondly, to amend the Cross-Border Road Transport Act of 1998 in order to empower the Cross-Border Road Transport Agency, CBRTA, to collect toll fees on behalf of Sanral; thirdly, to amend the South African National Roads Agency Limited Act to insert the definition of "owner"; fourthly, to provide for the differentiation in respect of the amount of toll that may be levied; fifthly, to provide that the regulations made by the Minister of Transport must be published by notice in the Government Gazette calling for comments from members of the public; sixthly, to empower the Minister of Transport to make regulations relating to the specified toll-related matters; seventhly, to provide for certain presumptions relating to the driving, operation and use of vehicles on toll roads, and the use of electronic evidence to prove the alleged contravention of the South African National Roads Agency Limited Act; eighthly, to exclude the levying and collection of toll from the ambit of the National Credit Act of 2005; and lastly, to amend the contents of the South African National Roads Agency Limited Act.
The noncollection of tolls may impact negatively on the ability of Sanral to raise capital for infrastructure development projects. The Bill must be seen in the context of government's plans to fund the envisaged infrastructure programme. Sanral has issued bonds to fund a project of R24 billion, plus capitalised interest amounting to approximately R3,4 billion that needs to be paid from the toll revenue. Failure to collect tolls and repay the bonds would have very serious financial implications for both Sanral and the national government, which approved guarantees in respect of most of the Sanral roads.
The inability to collect revenue will damage the credit reputation of Sanral amongst the investors, who may price the bonds higher to cover the risk. This in turn would have a negative impact on both Sanral and the government's credit ratings.
A draft Amendment Bill was published in Government Gazette No 13717 on 19 December 2008 as a mixed Bill, which was based on the legal opinion of the Office of the State Law Adviser. It was split into section 75 and 76 Bills and both were published in Government Gazettes No 33027 and 33028 respectively on 15 March 2010.
Public consultations on e-tolling were held in Gauteng with various stakeholders. During consultations, various alternatives such as a wealth tax, prescribed assets, vehicle licence fees and a few levies were mooted as possible alternatives to a toll levy. The most popular of these was the fuel levy, which its proponents argued could easily and cheaply be administered and collected.
The disadvantages of a fuel levy that were pointed out are as follows: firstly, it would affect everyone who buys fuel and not only the users of the Gauteng toll road; secondly, trucks would not pay more than light vehicles although they damage roads more; and thirdly, it would be impossible to exempt categories of users such as those who utilise public transport vehicles and those conveying persons with disabilities.
In conclusion, it is important to ensure Sanral's viability as a debt- erasing entity. Cabinet supports the use of toll tariffs as a method of raising revenue, but in a balanced approach that ensures the following: firstly, benefits of tolling for road traffic management, congestion control and future investment in new roads; secondly, affordability for users; thirdly, alternative routes' upgrades; fourthly, continued public transport investment; fifthly, regulatory environment strengthened to support enforcement; and sixthly, continued investment in national non-toll network and access roads.
In conclusion, I request the National Assembly to pass this Bill. I thank you. [Applause.]