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Business warns on cost of tolls

Johannesburg - The proposed Gauteng toll fees will weaken the competitiveness of the South African economy, Business Unity SA said on Thursday.

"Business believes the current tariff proposal and mooted e-tolling trajectory will weaken the competitiveness of our economy, and therefore the ability of the economy to create jobs," Busa said.

This is part of its preliminary submission to the Gauteng Freeway Improvement Project (GFIP) e-toll steering committee.

"If we are to create five million jobs in a decade, then every policy, regulation and tariff determination needs to be tested against that imperative," it said.

The government's new growth strategy aims to create five million jobs by 2020.

The Gauteng toll fees were set at 66 cents per kilometre before a public outcry led to them being put on hold and a committee formed to reassess the pricing.

The tolls form part of the Gauteng Freeway Improvement Project, which includes widening roads, easing congestion at bottlenecks and improving lighting.

Managed by the SA National Roads Agency (Sanral), it aims to upgrade 560km of roads in the province.

Busa is considering asking parliament to scrutinise Sanral's funding model in general as well as Gauteng tolling before the tariffs are finalised.

It is also going to pursue the matter through the task team established by the Presidential Business Summit on Job Creation last Friday.

The organisation said there needs to be adequate consultation before implementing projects that carry significant cost implications for consumers and business.

It also has some concerns about procedure in the consultation process.

"These include a February 13 request to the minister of transport for a meeting, which has not yet been finalised and vague responses from the department in relation to requests for clarity," Busa said.

"At a minimum, the mooted inclusion of business in the composition of the steering committee did not transpire."

Busa said the steering committee must take into account that the tariffs need to be realistic and affordable.

In addition, "all economic assessments as to affordability must be updated in the light of the impact of the recent global recession on South Africa's economy".

The Sanral funding model needs to be reconsidered.

"The utilisation of funds raised through the fuel levy should be completely reconsidered, including the ring-fencing of funds for roads construction and maintenance," it said.

"In particular, since the e-toll systems are mooted to be replicated in the City of Cape Town and eThekwini Municipalities, Busa believes that the better leveraging of the fuel levy may make for a much more predictable, simple, measurable and equitable user pays mechanism."
   
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