Taxis may get subsidies

Cape Town - Once the Bus Rapid Transit (BRT) system has become operational, government may consider a subsidy to assist the taxi industry, as well as the bus industry.

This is to ensure that there are no net job losses in the taxi industry when the first Rea Vaya BRT buses start to operate on Monday.

Negotiations between the taxi industry and the government, at both national and provincial level, have been protracted. This has made commentators wonder whether the BRT service will be ready for the 2010 World Cup soccer tournament.

But Jeremy Cronin, deputy minister of transport, reported that progress between government and the taxi industry had been made this week.

An agreement between the parties involved is expected to be signed on Friday.

Cronin said this type of subsidy is granted by governments worldwide.

He stressed that it would be "irresponsible" to simply dole out public money to the taxi industry, but that the issue should be seen in the context of broad-based public transport. Subsidies would also enable more commuters to make use of public transport.

Cronin believes a subsidy would hold the same potential as the government grant to bus operators.

The bus subsidy is no longer granted by the national Department of Transport, but by provincial departments of transport.

Certain provinces are already considering including taxis in the bus-subsidy system, he added.

But it is uncertain whether the system will be instituted in the 2009/10 financial year - or even in the 2010/11 financial year.

Cronin expressed the hope that "on Sunday and Monday we will be able to send a message to the international community that we eventually have a modern, first-world public transport system".

- Sake24.com

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