R188.5m review of taxi recapitalisation

File picture: Motshwari Mofokeng

File picture: Motshwari Mofokeng

Published May 5, 2015

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Parliament - Transport Minister Dipuo Peters on Tuesday said government would spend close to R200 million on a review of the taxi recapitalisation programme.

“The department will be reviewing the taxi recapitalisation model to improve its effectiveness and affordability,” Peters said, while delivering her budget vote speech in Parliament.

“Expenditure on the review is projected at R188.5 million over the medium term.”

Under the taxi recapitalisation programme, taxi operators are paid a sum of money to scrap their vehicles and buy news ones.

However, operators have resisted this, saying they are not being paid enough to buy new, more reliable vehicles.

Peters said that, in addition to the review, her department would invest time and money in the taxi industry as it was responsible for transporting more than two-thirds of the country’s commuters.

“We commit more than ever before that we will work closely with the taxi industry to facilitate their regulation and participation in the total transport value chain, for example in the fuel retail value chain, spares, assembling and manufacturing of vehicles,” she said.

ANA

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