R167m for taxi project

File picture: Gcina Dnwalane / Independent Media.

File picture: Gcina Dnwalane / Independent Media.

Published Jun 23, 2016

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Durban - The eThekwini Municipality is considering spending more than R165 million over the next three years to get minibus taxi drivers to “do the right thing”.

As officials scramble to improve public transport across the city, with plans for a R20 billion rapid bus system, the accelerated public transport service improvement incentive programme aims to bring the lawless taxi industry into line.

The city is looking at paying minibus taxi operators to maintain their vehicles, not to overload, play loud music or speed.

The incentive programme, if approved, could cost ratepayers R8.7m in the first year, R58.3m in the second year and R100m in the third.

The programme came before the city’s executive committee meeting on Wednesday.

It showed that during the pilot phase of the programme, taxi operators who complied with the rules would receive R1 000 a month for each vehicle, the taxi association R8 000 a month to co-ordinate, and the regional offices of the association R3 000. Driver of the month and runners-up would receive R3 000 and R1 500 respectively.

The report revealed that initially, under the pilot programme, 500 vehicles would be participating, that number increasing to 7 000 by the third year. Three associations would participate in the first phase of the pilot programme, that number swelling to 56 by the third year.

But when the item came up for discussion, city manager, S’bu Sithole, said they wanted to take out the financial incentives for the time being because they did not want to create “unnecessary expectations” from the taxi industry.

He said officials from eThekwini Transport Authority (ETA) were still to hold a meeting with the taxi industry over the plans. He said, however, that during the discussion with the industry they would not rule out financial incentives.

Those who would eventually participate in the pilot programme would have their vehicles fitted with tracking devices, ensure their drivers had appropriate licences and permits, and that their taxis adhered to strict time schedules. Passengers would be enlisted to rate the performance of the drivers during the trip and vote for the driver of the month per route.

DA councillor, Heinz De Boer, said the expectation of financial incentives had already been created because the report, which was now public, published the financial incentives.

“This is a pilot project with a small amount of taxi associations, but as soon as this is started, all the taxi associations would want to get involved, and they would want to get involved because there is money involved.

“In the long run, the incentives may provide a better service to commuters but we just wonder whether the big amount of money that will be spent over the long-term won’t be better spent on things like enforcement. Would it not be prudent having a dedicated metro police unit doing enforcement, for an example?” he asked.

DA caucus leader, Zwakele Mncwango, said he did not understand why the city was looking to pay taxi operators for “doing the right thing”.

“They are in business, and providing a better service or an improved service is part of business. If you provide a better service, it is part of your competitive advantage, and if you provide a poor service people will go elsewhere to a better taxi.

“The concept is good, but I fail to understand why we must pay people to do the right thing,” he said.

ANC councillor, Zandile Gumede – the ANC’s mayoral candidate for Durban – told the DA that the report was not final and they should not attack it just yet.

“All that we want is to make sure it is a work-in-progress. This is about the officials working on it further and coming back with ideas from stakeholder meetings,” Gumede said.

She said that during the stakeholder meetings, officials would use financial incentives to get the taxi operators’ buy-in.

She said debating the issue while it was “still raw” would not assist them in taking the issue forward.

City treasurer, Krish Kumar, said the city was looking at the affordability of expanding the pilot project and said there were national subsidies they could tap into to fund it.

“This is a complicated industry and we would need to look at this project objectively to improve the viability of this service. Subject to this being implemented appropriately, it should have the desired effect and be far more effective than (what) we currently have,” he said.

“Currently, we have a haphazard service for commuters with absolutely no regulation. It is a question now of affordability and how do we look at the pilot project and the results we could get.”

Sithole said the concerns of the opposition were the reason the city decided to take out the financial incentives that were in the initial document.

“When we consult (with the industry) we must be clear as to what we are trying to do. The incentives may not ultimately be only monetary, it may be other things as well. That is why we want to engage with them (the industry),” he said.

Sithole said the concept of the pilot programme should be agreed in principle and a report be brought back to the council for a final decision after all the factors had been considered. All parties agreed to it.

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