New deal on Gauteng e-tolls
Category Property Maintenance & Costs
The new deal on Gauteng e-tolls effectively offers everyone the e-tag discount, but doesn't get motorists out of paying their bills.
Yesterday, Deputy President Cyril Ramaphosa announced that "a single, reduced tariff will apply to all motorists" within the vehicle class whether they have e-tags or not, which meant "the current standard tariff of 58c per km for light motor vehicles will be reduced to 30c per km".
All motorists will be charged the existing e-tag rate, whether they have e-tags or not.
The 58c/km rate has been the "standard rate" for light motor vehicles since 2013, and those who have e-tags have had the discount tariff of 30c/km since then.
The good news for the frequent users is that the monthly cap has been cut, which for light motor vehicles is from R450 a month to R225.
Details for heavy vehicles were not available at the time of publication.
The motorists who have refused to pay and have run up massive e-toll bills since the gantries were switched on in December 2013 will have to pay their bills, at the e-tag rates.
"E-toll fees that are currently outstanding will be discounted by 60 percent," Ramaphosa said, giving defaulters six months to pay up.
That effectively removes the punitive rate but still charges for tolls, as the existing tariffs added that 60 percent onto the unpaid bills.
Those who don't pay, will soon find that the law is updated to block the reissuing of vehicle licences to those with e-toll arrears.
"Settlement of e-toll fees will be linked to motor vehicle licence renewals motorists will need to settle any outstanding e-toll fees before vehicle licence discs are issued," Ramaphosa pointed out.
His proposal, announced yesterday, aims to simplify the e-toll tariffs on Gauteng's freeways and to send part of the bill to the government.
"This new dispensation presents an opportunity for a fresh start," Ramaphosa said, adding that it would take two to three months to implement.
The discount would result in a shortfall of about R390 million a year to service Sanral's debt, a shortfall that would be shared between the national and Gauteng governments, he explained.
But the early indications are that it won't end the e-toll wars.
Sanral chief executive Nazir Alli called the plan a "win-win for both road users and Sanral", adding that it affirmed the userpays principle as the major funding method, which ensured equity and efficiency.
"We welcome the decision and hope that the matter is now laid to rest, so that we can focus all our energies on executing our mandate to the benefit of all South Africans," Alli said.
But the Opposition to Urban Tolling Alliance (Outa) was unimpressed.
"While the government says they have lowered the tariffs, effectively they have not. They have merely removed the punitive tariff," Outa's Wayne Duvenage said.
"The reduced cap from R450 to R225 per month only appeals to less than 10 percent of the motorists, as over 90 percent of users would not have exceeded that cap in the past anyway."
The SA Chamber of Commerce and Industry was cautiously welcoming of the apparent cuts, but was awaiting more details.
"It's a big improvement," Sacci acting chief executive Peggy Drodskie said.
DA leader Mmusi Maimane criticised the plans to catch e-toll defaulters through vehicle licence renewals and the lack of amnesty for those in arrears, and said the system was collapsing.
"E-toll payments have dropped from R120m in June 2014 to R45m in January this year, while Sanral's monthly cost recovery targets have risen from R108m to R204m over the same period," Maimane pointed out. He promised to continue the anti-e-toll fight in Parliament.
Ramaphosa's announcement followed years of anger over e-tolls.
It was as a result of public outrage rather than upfront public consultation, but the outcome has been a dramatic change in the tariff structures imposed on the Gauteng Freeway Improvement Project. The "new deal" presented yesterday by Deputy President Cyril Ramaphosa sees a drastic cut in the e-toll fees charged for driving on the freeways, and while they will not be welcomed by all, this victory for people power and the willingness of the government to listen should be welcomed.
After years of court battles, claims and counterclaims, there will never be satisfaction among the opponents of e-tolling, but the time has come for this compromise to be accepted.
Many motorists who have been refusing to pay for their use of the highways will now have little excuse given the new fee structure announced by Ramaphosa, who headed a government task team investigating e-tolls in Gauteng. He gave as an example that the present charge of 58c/km for light motor vehicles would be cut to 30c/km - a reduction of almost 50 percent. The monthly cap for cars has also been dramatically reduced, with the maximum amount payable by any motorist dropping by half to R225 per month. Of course any charge imposed on the thousands of delivery vehicles which use the motorways will have an impact on shop floor prices, but having invested many billions in the Gauteng project, the SA National Roads Agency Ltd needs a hefty flow of cash.
The concessions announced by Ramaphosa will lead to the agency facing a cash shortfall, which he said would be met by the national and Gauteng provincial governments. Some opponents had called for a national fuel levy to be used to cover the costs of the project, but Ramaphosa's team decided to rather stick to the "user pays" principal.
His compromise does not address a cardinal objection in that commuters will still be charged merely for travelling to and from work, but the cutting of the tariffs cushions this blow.
Crucial though to long-term compliance will be the rate at which tariffs are increased in years to come. Pull "an Eskom" on the public and we will be back to square one.
Author: IOL Property
