Ramaphosa to lift veil on Gauteng e-tolls

Cape Town – The countdown has begun for Gauteng motorists, who will find out on Wednesday afternoon what fate awaits them each time they drive under an e-toll gantry.

Deputy President Cyril Ramaphosa will announce a new dispensation on Gauteng e-tolls at Parliament in Cape Town, the Presidency said in a statement.

“The new e-tolls dispensation is the product of extensive public consultation, deliberations within government and approval by Cabinet,” it said.
 
Ramaphosa will be joined by Transport Minister Dipuo Peters, Finance Minister Nhlanhla Nene, Gauteng Premier David Makhura, and Gauteng MEC's for Transport and Finance, Ishmael Vadi and Barbara Creecy respectively.

In his 2015/16 budget speech in the National Assembly, Nene said: "Concerns regarding the socio-economic impact of toll tariffs have been heard, and revised monthly ceilings will shortly be proposed."

He stressed that the principle of tolling remained firmly in place, adding with regard to the project: "Cost recovery from road users will continue to be the principal financing mechanism for this major road system."

Hybrid model expected

City Press reported earlier this year that an e-toll consultation team, headed up by Ramaphosa and which included roads agency Sanral, the Treasury and the Gauteng government, would adopt some of the recommendations of the e-tolls review panel set up by Gauteng Premier David Makhura.

The panel recommended a hybrid funding model for highway upgrades that includes higher motor vehicle licence fees; turning off certain gantries; increasing off-peak discounts; and introducing time-of-day exemptions.

Officials who attended meetings facilitated by Ramaphosa said the consensus was that some of these recommendations should be adopted.

This would help ease the burden on Gauteng motorists, it was reasoned, and get their buy-in for the hugely unpopular e-toll system.

The first option they seem to be agreeing on is a reduction in the monthly cap for motorists who have e-tags. That cap is currently set at R450. Those driving on the province’s freeways could also expect a number of free passes under the gantries.

Caps will be reduced - insider

A national government insider privy to the talks told City Press: “The caps will be reduced – there seems to be consensus around that – and they will throw in things like a certain number of free passes under the gantries a year. Perhaps even a reduction in overall tariffs.”

But the Treasury has told Gauteng that it will have to fork out any shortfall to Sanral because of the reworked financial projections arising from the review panel’s recommendations.

Sanral spokesperson Vusi Mona said at the time that Sanral was waiting for the outcome of the process, which would give final policy clarity and direction.

“As an implementing agency of government, Sanral will implement whatever policy decision is taken on this matter,” Mona said.

GRAPHIC: The Treasury has painted five scenarios of the impact on expected revenue to Sanral as a result of any relief granted to Gauteng motorists

* Fin24 will be reporting live from Parliament as Ramaphosa makes the announcement.