It is fine. [Interjections.] Yes, for which you all voted! [Laughter.] [Applause.]
For instance, a teacher who resides and works in Soweto, who never travels on the tolled road network, need not be concerned, as he does not utilise the road on a regular basis like someone who resides in Pretoria but works in Johannesburg. [Interjections.] Once-off users are encouraged to contact the Sanral call centre to get day passes that will qualify them for discounted tariffs should they wish to travel on the tolled road network.
We also have a responsibility as a country to service the debt incurred when the GFIP was implemented to improve the road network in question. It is now public knowledge that South Africa has a financial obligation of R20 billion to this effect, escalating to R32 billion, with interest, over the next couple of years.
Failure to honour this obligation will adversely affect our country's credit rating. Just yesterday, the world woke up to the news that Argentina's credit rating had been downgraded. South Africa is no exception to this possibility should we fail to honour our commitments. This is important to note, particularly because, as a country, we borrow at least R10 billion a week to service our budget deficit and state debt and to meet the financial obligations of state-owned companies. This includes payment of Members of Parliament. [Laughter.] [Applause.]
We would like to thank the people of Gauteng for their co-operation as we move towards the implementation of this critical project. We extend similar gratitude to the Premier of Gauteng, Ms Nomvula Mokonyane, and the provincial government for the leadership displayed during our discussions on this matter over the past few months. We have learned very valuable lessons from this process.
It is also important to remember that the implementation of the project was postponed on two occasions. The first postponement was in March 2011, after various stakeholders raised concerns. The postponement was intended to allow for further consultation to take place. A steering committee was then established, which recommended to Cabinet a comprehensive discount regime. This included the zero rating of public transport vehicles, specifically taxis.
I wish to take this opportunity to re-emphasise that no public transport vehicle will be expected to pay e-tolling tariffs. They are exempted because we believe users of public transport are, in the main, people in the low-income bracket, and we are committed to safe, affordable and efficient transport.
The second postponement was in February this year. That eventually led to the National Treasury setting aside R5,8 billion for the project. This intervention resulted in a further reduction of tariffs, therefore further alleviating the financial burden on the consumer. All these concessions were made in response to the concerns raised by the public, indicating that we are a caring government that is willing and able to listen to its citizens, while taking a national perspective, not just of one road.
Roads play a critical role in the movement of passengers and goods in the country. A large percentage of people are dependent on roads for many reasons. All sectors of the economy depend on roads to transport goods to all corners of South Africa. The majority of goods are transported by road and, furthermore, forecasts reveal that freight transport demand will grow by between 200% and 250% over the next 20 years.
The SA Roads Federation estimates that the failure of the road network, both in condition and its ability to cope with increased demand, imposes an estimated additional R20 billion in wear and tear. For rural communities, the very poor state of many municipal access roads, including unproclaimed roads, has contributed to soaring vehicle operating costs and, more significantly, has hampered the ability of communities to access services in key health and education sectors.
South Africa has a total road network of 750 000km, of which 17 000km is managed by Sanral. The total annual maintenance requirement for the South African road network is R88 billion. The total allocation from Treasury in the 2012-13 financial year for roads is R38 billion, leaving us with a shortfall of R43 billion. The situation is further compounded by exchange rate fluctuations and fuel price volatility that has an impact on the bitumen price - an important input in road construction.
For municipalities, just as in provinces, equitable share allocations and own revenues constitute a pool of funds from which municipalities are able to finance their road infrastructure. Some of the major projects being undertaken by Sanral include: the R341 million Sitebe-mKomkhulu- Viedgesville road on the N2 in the Eastern Cape; the R42 million Harrismith- Kestell road; the R64 million Durban-North-Coast interchange project; the R147 million Ventersburg-Kroonstad road project; and the R51 million Mhloti- Tongaat toll plaza project.
We need to focus on the following areas: the Road Maintenance Fund; rural development through rural road infrastructure; job creation; ensuring rural transport; and skills development.
The S'hamba Sonke road maintenance programme was launched in April 2011. For the first time in the history of this country, this entire amount is ring-fenced for the maintenance of roads. For the 2012-13 financial year, the money is allocated as follows: KwaZulu-Natal, R1,2 billion; the Eastern Cape, R1 billion; Mpumalanga, R1 billion; Limpopo, R934 million; Gauteng, R566 million; the Free State, R447 million; the Western Cape, R411 million; the Northern Cape, R308 million; and North West, R501 million.
Road safety is one issue where all South Africans share a unity of purpose. It is a problem that affects everyone, regardless of colour, gender, or beliefs. We agree that we all have a common responsibility to ensure that our roads are safer. We are confident that we are on the right path. We are encouraged by the significant reduction in road fatalities recorded over the recent Easter long weekend. Although we remain concerned about the lives we continue to lose on our roads, we believe that a reduction from last year's Easter death toll from 297 to 181 this year is worth noting. This means our strategies are relevant in addressing the challenges we face on our roads.
I wish to convey my sincere congratulations to all MECs who work tirelessly to ensure that we are safe on our roads. My gratitude also goes to our traffic law-enforcement agencies at all levels for their sterling work. We also thank the Police Service and emergency services for their partnership in ensuring that our roads are not turned into killing fields. We will continue with our educational and policing activities throughout the year to ensure a culture of voluntary compliance with the rules of the road. We note that it is indeed not government Ministers or government who drive 9,7 million cars.
We encourage everyone to become a friend of the Decade of Action for Road Safety. This is a United Nations programme. You can do this by becoming a member of the Road Safety Council in your community, ensuring that you take ownership of the streets and roads in your neighbourhood. We also urge you to wear the Decade of Action tag - this is one tag you should wear - as a symbol of your commitment to safer roads. Our guests are donning this tag today and we encourage them to keep it on. Wear it, believe in it and act on it! We will continue to seek lasting partnerships with the private sector as we explore various ways of addressing the road carnage. We should thank the corporate partners who have been working with us on a number of campaigns aimed at saving lives, such as I-Pledge with Imperial Holdings; Think Pedestrian with the Nelson Mandela Centre of Memory, the United Nations and Equestria Fleet; and our partners in road safety activations, such as Pick 'n Pay and Netcare 911. They are present with us here today. Sithi nangomuso! [Let us continue in this fashion!] [Applause.]
The Road Accident Fund, RAF, needs to be financially resourced to carry out its mandate when it comes to victims of traffic accidents. Just yesterday, we were in Mitchells Plain where the RAF took services to the community in that area. A total of 22 claims were settled on the spot, with the highest individual payment being R915 000. The total amount paid out to claimants during the two-day campaign was R3,1 million. We also handed over wheelchairs to members of that community. One of the recipients is a man who was involved in a car crash 17 years ago. I am glad to announce that he has not allowed this unfortunate situation to kill his spirit.
The battle against fatal road accidents has to be won. The Department of Transport and the Road Traffic Management Corporation, RTMC, will intensify efforts to reduce accidents by half by 2020, as part of the United Nations Decade of Action for Road Safety.
The Moloto Rail Development Corridor is on the cards and a steering committee is working on this. Regarding public transport, the mass rapid public transport network, which includes rail, taxi and bus services, is on course.
Regarding the Taxi Recapitalisation Programme, as government, we have taken the broader approach which will press upon the financial services industry to create affordable facilities; support the industry; develop a post-TRP vehicle replacement model; and design public transport contracts.
A transport ministerial meeting with MECs, which took place last week in Johannesburg, resolved to opt for negotiated contracts as far as buses are concerned; to establish a steering committee comprising national and provincial governments; and to finish these negotiations by September of this year, so that the uncertainty that exists in the bus industry is done away with.
Regarding maritime transport, we are dealing with trans-shipment; coastal shipping; ship registration in South Africa; and skills development.
On aviation, we want to congratulate the Airports Company SA, Acsa, on having been awarded a contract to build an airport in So Paolo, Brazil, in preparation for the 2014 Fifa World Cup. [Applause.] That is the transfer of skills.
I wish to thank the portfolio committee under Ms Ruth Bhengu. I wish to thank the Deputy Minister of Transport, Mr Jeremy Cronin, for working the way we do in taking this department forward. I also thank the director- general, George Mahlalela, and his very hardworking and dedicated team for keeping the ship afloat, even in challenging times. We have overcome the odds and outdone ourselves: people thought that BRT would be the end. They think e-tolling ... We have this team, this wonderful team. [Applause.]
To the transport sector, thank you for your continued support. Working together we can ensure that South Africa realises and lives the transport dream.
Chairperson, I want to thank you and present this budget for approval by this House. Thank you very much. [Time expired.] [Applause.]