Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Cosatu to strike over tolling

Aug 11 2011 21:23 Sapa

Related Articles

Cabinet approves Gauteng toll tariffs

AA warns of tolls disobedience

Task team to tackle Gauteng power issues

Sanral: Tolls will benefit motorists

Support grows for toll road strike

Gauteng pumps run dry as talks deadlock

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print
Johannesburg - Cosatu has threatened to strike if the tolling policy on the Gauteng Freeway Improvement Project (GFIP) is not scrapped.

"If there is no change...we shall be planning marches, demonstrations, pickets and stayaways, and taking strike action," spokesperson Patrick Craven said in a statement on Thursday.

The Congress of SA Trade Unions expressed anger over Deputy Transport Minister Jeremy Cronin's announcement earlier in the day that  cabinet had approved reduced toll tariffs for the GFIP phase A1.

Craven said: "Government earlier promised it would consult with the public before charging tolls.

"Yet at the only meeting to which Cosatu Gauteng was invited, they were simply told that the tolls were going ahead. That is not consultation!"

Cravin contended that the widespread opposition to the proposal had been ignored, and that it would impose a huge burden on road users.

Last week, the Federation of Unions of SA (Fedusa) said it would join Cosatu in a tolling strike if it went ahead.

"The open road tolling system is aimed at consolidating the privatisation of our national roads and this simply cannot be allowed to happen," said general secretary Dennis George at the time.

"Government cannot forgo their responsibility of maintaining the country's infrastructure and then unilaterally decide to pass on these costs to taxpayers. Consultation with the social partners must be made a priority."

Earlier, Automobile Association (AA) spokesperson Gary Ronald said it appeared that all intentions of a fund to alleviate tolling had disappeared, leaving the public to foot the bill.

"The questions was - now what?" he asked in a statement.

Taxis exempted

While industry as a whole now waited for the SA National Roads Agency Limited (Sanral) to announce the date tolling would begin, the AA did not see the implementation of tolls as a "victory for the people on the ground".

"Commodities are going to cost more as a direct result of the tolls and effectively, the poor will be worst off," said Ronald.

"If the public rally together and stand firm in the face of tolling by not registering for e-tags and flagrantly disregarding tolling costs and consequent fines, will the authorities have the wherewithal to manage a disgruntled five million motorists?"

Earlier, Cronin told a media briefing that motorcyclists would pay 24 cents a kilometre, light motor vehicles 40 cents, medium vehicles R1, and "longer" vehicles R2.

Qualifying commuter taxis and buses would be exempted entirely.

In addition to the 31% e-tag discount, other discounts applicable would be a time of day discount available to all vehicles, and a frequent user discount for motorcycles and light motor vehicles fitted with an e-tag.

Cabinet had agreed that Transport Minister Sibusiso Ndebele should give effect to the approval in terms of the Sanral and National Roads Act, Cronin said.

In a statement, the Democratic Alliance's Neil Campbell said the toll fees as announced were still too high and would add unacceptably to the costs of doing business in the province.

"While we welcome the exemption for commuter taxis and buses, the private motorist will be hit exceptionally hard.

"We are still in the dark about the real costs of operating the e-tolling system, which is possibly as high as R14bn over eight years."

This seemed to be excessive and would be difficult to implement in a situation where many people were hard to trace and many licence plates were fraudulent.

The DA was concerned the toll fees would rise further over the years.

"We are paying the price for extremely poor planning by the Gauteng provincial government," Campbell said.

The SA National Taxi Council (Santaco) welcomed the exemption for taxis.

"The exemption relieves the taxi industry from the high operational costs that operators are presently struggling to survive in their day to day business operations," it said in a statement.

Business Unity SA (Busa) said the e-tolling system would still introduce significant administrative and cost complexity for business that would be felt right across the spectrum - by the tourism industry, manufacturers, and small business.

"The seven-day payment terms requirement still remains a worrying concern, as it will cause cash flow disruptions," it said in a statement.

"While we believe that the reduction in tolls and the exemptions granted to taxis and commuter buses will to some extent soften the pain to commuters, it does undermine the 'user-pay' principle and complicates the criteria applied in deciding which vehicles would be subject to tariffs and which not."

Busa said the cost impact on fast-moving consumer goods, particularly basic foodstuffs, would still be felt most significantly by the working and unemployed poor.
 
 

 
 
Comment on this story
43 comments
Add your comment
Comment 0 characters remaining
Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...