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A toll gate on the N1 North just before the Beyers Naude offramp in Gauteng. Photo: Dumisani Sibeko
The DA has challenged a public finance economist on his finding that the e-tolling system will not affect the poor.
“The statement… that toll fees on the Gauteng Freeway Improvement Project (GFIP) will only make the rich poorer and not hit the poor, cannot go unchallenged,” DA MPL Neil Campbell said on Wednesday.
“(The) claim that most poor people will not have to pay tolls as they use public transport is not accurate as not all taxis and buses will travel toll free, but rather only those with licences and on approved routes.”
On Tuesday, Dr Roelof Botha told reporters that the GFIP would result in unmitigated success and tangible benefits for South Africa.
“It will make the rich poorer, not the poor poorer,” he said in Joburg.
Botha's research found that the project would result in the highest income earning quintile (20 percent of the richest people) in Gauteng paying up to 94 percent of the toll fees, while most of the poor people would stick to public transport.
He said the project would maintain South Africa's international credit ratings, obviate the need for fuel levy increases, allow rapid investment in road construction, alleviate traffic congestion, and enhance safety.
Botha argued that commuting time saved (because of four lanes) would translate into productive earnings.
Campbell disagreed and said that the cost of every item transported along the toll roads would increase because hauliers would resort to raising their prices for transporting goods.
“This will impact on every resident in Gauteng, as the price of every item transported, including food, will rise.”
He contended that every home owner would also have their rates increased because of additional municipal road maintenance required due to increased pressure on roads by drivers avoiding the toll roads.
“The so-called benefits mentioned by Botha of decreased traffic congestion on the tolled roads will be temporary as the number of cars using the freeway will increase by seven percent a year, reaching capacity in just two years,” said Campbell.
“He (Botha) also disregards the enormous toll collection costs that will be saved with a simple fuel levy.”
The DA strongly disagreed with Botha's stance and reaffirmed its opposition to toll roads in Gauteng.
Last year, the SA National Roads Agency Limited announced that tolling was imminent on 185km of the N1, N3, N12 and R21 around Johannesburg and Tshwane.
In terms of GFIP, these roads and their interchanges had been improved and costs estimated at around R20 billion would be recouped through toll charges.
Light motor vehicles were expected to be charged R0.40/km, medium vehicles R1/km, “longer” vehicles R2/km, and bikers R0.24/km.
Qualifying commuter taxis and buses would be exempt.
E-tolling was placed on hold in January after a huge outcry that tolls were unaffordable. – Sapa
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SS, wrote
This (the reduction in toll fees) was a pathetic attempt by government to try and stem the protest that is coming. They thought this would weaken the resolve of us South Africans but they have missed the mark totally on this one.
Renesongs, wrote
What hacks me off is that both the DA and the ANC seem to be clueless about the implications of road tolls. Put simply a road toll increases the cost of transporting goods whether it be maize meal or caviare. Therefore all transported goods increase in price. Since poorer people have to spend a larger portion of there income on consumer goods than wealthier people they are effectively paying a larger percentage of their income on the tax. This effectively dilutes the effect of progressive taxation. Added to this is that Only a very small percentage of a toll tax (if any) finds its way to the state coffers due to the high cost of collecting and maintaining toll plaza systems
Karen , wrote
what Botha doesn't factor is that the commute made by workers is done on their own time and not company time so his formula where he adds back 15% into money-making tasks is just WRONG. He also doesn't factor in that national chains (eg Pick 'n Pay, Shoprite, Woolies etc) can't just raise prices in Gauteng to offset costs so that means they will increase prices across the country to stay in line. Seriously, this guy obviously lives outside Gauteng so it's easy to make dumbass arguments!
Dumisani, wrote
People like me who works @ night were never provided with public transport.As nobody talks about poor citizens trying to make a living trough night shifts even the public protector has nothing to say about the poorest of the poor.Whom are we going to lean on?
Anonymous, wrote
Anonymous, wrote
This subject is already history - after the Finance Minister's delivery of the Budget Speech....
aml, wrote
tippingpoint, wrote
why is it that everybosy avoids the argument, what is happening to the money already allocated to roads i nthe fiscus? secondly, once the loan is paid back, where is it stated that tolling will be removed? and thirdly, what person pays for a toll road that is incomplete, of the 181 km more than 50 km is still under construction, must i pay full price for half a house?
LUPERCUS, wrote
Here we have a classic example of one idiot contradicting another. I do not know Botha but I have met Campbell (ex dentist), and what he knows about economics I suggest one could write on the back of a postage stamp. Firstly, why are taxis exempt from the toll? The government (us, the taxpayer) already subsidise their petrol costs - now we, the taxpayer, will subsidise their toll fees, indirectly. The Dr. Botha blithely assumes only rich people have cars and will go through tolls. A ridiculous assumption, totally unfounded. Why should the motoring public pay for the road upkeep, they already pay road tax included in the petrol price, which is now set to reach R11litre? That alone will impact on the general public; toll fees will aggravate the COL situation. The transporters who have no option but to go through the tolls will also pass on the cost to the eventual end user. Again prices set to soar. The DA has once again failed their supporters just as they did when they let the alterations to the Environment Impact Assessment standards regarding microwave Tower erection, despite scientific proof that these towers emit dangerous microwaves. It looks as if the DA has slipped up again, they should have become more vocal and more militant a long time ago. But why bother, Campbell gets about R835 000 per annum doing very little in the Legislature. I think his wife is also a member giving the pair an R1, 6 million income each year.
Ashley, wrote
Im intrigued as to who is defined as "rich" cause if by avarage office worker that drives a 8yr old entry level car, I certainly see tolls as a huge expense I likely cant afford. So Im wandering if that defines me as being 'rich'.
Anonymous, wrote
Motorists are just not going to pay these tolls. What is it that Gordhan doesn't understand.
Anonymous, wrote
M, wrote
What is Botha smoking?, wrote
Anonymous, wrote
ian, wrote
Gadaffi, wrote
Buthalezi, wrote
4 lanes does NOT alleviate traffic congestion, OR save commuting time- just look at the freeway now- still congested- not to mention the sub standard work bumps etc.
Anonymous, wrote
Over my dead body. Time to remove all those signboards. Without signboards, they cannot charge ;-)
Anonymous, wrote
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