Industry welcomes mooted subsidies

TAXI organisations have welcomed the news that a government task team is investigating the possible introduction of a subsidy for the industry.

TAXI organisations have welcomed the news that a government task team is investigating the possible introduction of a subsidy for the industry.

Published Sep 22, 2014

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Jason Felix

TAXI organisations have welcomed the news that a government task team is investigating the possible introduction of a subsidy for the industry.

A subsidy for minibus taxis was first mooted in 2007 when the South African National Taxi Council (Santaco) launched a campaign for a greater share of state resources. The industry says subsidies would bring down its costs and fares.

Santaco national secretary-general Philip Taaibosch said: “I know that (Transport) Minister Dipuo Peters is fond of taxis. I have heard some talks going on about the taxi subsidies. We would really like to have a subsidy. The trains and all bus services are given a subsidy by the government. It is about time we were recognised.”

Transport and Public Works MEC Donald Grant also believes taxis should be subsidised, as bus and train services are. Referring to the national department’s efforts, he said: “The province will participate fully in its work, as well as the task team who will determine whether such subsidies would be viable.

“The taxi industry is a crucial provider of public transport for many in the province.”

Peters’s spokesman, Tiyani Rikhotso, confirmed that the task team had been appointed earlier this year. Although pressed for details, Rikhotso was unable to give any information about the task team and its work.

The mayoral committee member for transport, Brett Herron, said the taxi industry provided an essential public transport service that was also crucial to the city’s planned integrated public transport network.

“We await the outcome of the national minister’s initiative,” he said.

“The City of Cape Town is committed to working with the taxi leadership in Cape Town to ensure the economic sustainability and viability, as well as the stability, of the taxi industry.”

Rikhotso said the department was in favour of extending operational subsidies to all modes of transport. These would also be available through contracts signed with municipalities for their integrated transport systems.

“The 2007 public transport strategy advocates for the development and implementation of integrated public transport networks by municipalities. Through this process, municipalities will provide formal, contracted public transport services, provided by different modes of transport, which will include taxis.”

The approach was being implemented in Joburg’s Rea Vaya BRT service, which includes taxi operators.

During the city’s inaugural Land Transport Advisory Board meeting last month, Rikhotso said Cape Town’s MyCiTi BRT service would be next. It would be followed by the BRT services to be launched in Tshwane and Ekurhuleni.

“In each of these projects, municipalities have entered into negotiations with affected taxi operators, with the intention of involving them in the new negotiated contracts, and (through these giving them) access to any operational subsidies available for routes. This approach is being rolled out across the country.”

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