PARLIAMENTARY MEDIA BRIEFING
ON BEHALF OF MINISTER OF TRANSPORT, DULLAH OMAR
09 February 2000.

In transport we see future developments unfolding within a framework of:
· a long-term vision supported by properly aligned and delivery-focussed institutions based on sustainable funding mechanisms and tough enforcement;

· a collective commitment, across the three spheres of government and the wider transport industry, to co-ordinate the efforts we put into infrastructure investment and the continuous upgrading of human, technical and physical resources. This is essential if we are to fully meet the challenges of national development and regional co-operation in the context of a challenging, dynamic and unforgiving global economy;

· a dynamic and competitive transport industry which, through a combination of regulated supplier power, development incentives, operating permissions, tendered contracts and demonstration projects, meets the expanding needs of its customers on a sustainable basis by continuously upgrading, innovating and differentiating its services.

ARRIVE ALIVE
The Arrive Alive Road Safety Campaign was launched in 1997 as a first step towards the development of a systematic nationwide strategy to combat the carnage on our roads. Arrive Alive was planned and introduced with the full support and co-operation of the provincial MEC's for Transport and Traffic and with intensive local government participation at the operational level.

This project has now entered its fourth phase, which commenced on 1 May 1999 and ends on 30 April 2000. The special target dates during for this phase were December 1999 to January 2000 as well as Easter 2000.

The Arrive Alive project, despite the strength of its impact on the public imagination has not been without its problems. Scarce resources continue to be a problem for a campaign of this scope and complexity - both financial and in terms of the availability of adequately skilled and trained personnel at all levels of management and enforcement. In this regard, we gratefully acknowledge the continuing financial support of the Road Accident Fund and of the businesses, which have helped fund various key communication activities and become involved in the campaign. We are confident that many of the management and enforcement co-ordination problems we have experienced will be resolved through the implementation of AARTO and the establishment of the Road Traffic Management Corporation.

TAXI RECAPITALISATION PROJECT
The taxi recapitalisation project finds its roots in the final recommendations of the National Taxi Task Team, which were accepted by government in 1996. Those recommendations were a product of a comprehensive consultation process that involved 36 public hearings throughout the country. When government entered into a Memorandum of Understanding with the South African Taxi Council (SATACO) in May 1999, it committed itself as a partner in finding a sustainable solution to the recapitalisation crisis facing the industry.

Such a crisis has been brought about by, among others:
a) The vehicle prices have soared to unaffordable levels for the industry;
b) The average life of a taxi vehicle has peaked to 10 years;
c) The inability of the taxi industry to access funding to renew its fleet;
d) Inadequate revenue caused by competition against subsidised modes and saturation of routes.

Formalisation and Training
Formalisation of the taxi industry is premised on the recognition by government of the taxi industry as a formal part of the public transport system, subject to the taxi industry complying with fundamental principles of democracy, peace and unity within the industry. This compliance takes two main organisational forms - adoption by associations of a standard constitution and a code of conduct, and the Memorandum of Understanding between the SATACO and the Department signed in May 1999.

Adoption of the Standard Constitution by primary associations is intrinsically linked to the registration process, wherein all association, operators and non-members are required to register with an independent statutory entity known as a Provincial Taxi Registrar.

The MOU was entered into after the taxi industry formed itself into a national representative body in the form of the South African Taxi Council (SATACO). SATACO is composed of the 9 Provincial Taxi Councils and the 12 recognised mother bodies. Whilst the nominated representatives that make up SATACO are an interim leadership i.e. custodians of implementing the terms of the MQU within a period of 18 months, the formation of SATACO was recognised as a permanent necessity in the industry. SATACO will therefore be holding democratic elections in June 2000, which elections will be independently monitored, and which will, for the first time, enable every legal operator in South Africa the opportunity to vote for their leadership from primary association level to the provincial council, up to national council level.

The taxi recapitalisation project has been designed with a view to achieving the above stated objectives. However, due to the nature of the project, its scope goes beyond the mandate of the Department of Transport. The project incorporates the Departments of Trade and Industry, Minerals and Energy and Finance. This project is therefore a clear demonstration of the extent to which the policy and strategy of the national government can be combined across line function Ministries to give effect to delivery on a national scale.

The introduction of the new 18 and 35 seater vehicles means the introduction of purpose-built vehicles that take into consideration the critical safety issues, in the sense that these vehicles are required to go through crash testing and a roll-over angle is prescribes in compliance with SABS standards. Passenger safety, comfort and a cashless fare system in the form of smartcard technology are the hallmarks of these new vehicles. Note has to be taken that the introduction of these vehicles into the system require a re-alignment of the landscape in the passenger transport system to enable a workable and efficient deployment of modes in the system. Such re-alignment will be made possible by the new legislative framework covered by the National Land Transport Transition Bill, which is currently in front of Parliament.

LAW ENFORCEMENT
The upsurge in corruption with respect to motor vehicles is of great concern to the department. Some of the areas where corruption is prevalent are motor vehicle registration and licencing, driver licencing and the general law enforcement environment. Road transport-related violence is also of major concern to the department. The department is committed to the eradication of weak law enforcement.

To this end, the department is already starting work - through its key consultative mechanism with provinces, MINCOM - on putting together a new structure and set of functional capacities that will create the required change. The responsibilities of this functional capacity will be executed through provincial and local government structures and will be exercised in conjunction with national policing authorities and other stakeholders involved in the national crime prevention effort.

In the long run, it is envisaged that the management and control of this effort will be located in the Road Traffic Management Corporation.

ADMINISTRATIVE ADJUDICATION OF ROAD TRAFFIC OFFENCES (AARTO)
In general only about 25 percent of traffic fines are paid, with collection rates in some metropolitan areas as low as 9 percent. To this end therefore, the department sought and obtained Parliamentary approval of the Administrative Adjudication of Road Traffic Offences (AARTO) Act. The purpose of the Act is to:
· improve the finalisation of traffic offences from below 25 percent up to at least 70 percent;
· ensure that those involved in arrest bribery and corruption are detected and arrested;
· standardise penalties for the contravention traffic law countrywide;
· relieve the court system of the burden of attending to thousands of traffic-related cases annually;
· identify habitual transgressors and deal with them decisively;
· introduce a points demerit system on drivers’ licences that will encourage good driver behaviour and ensure that persistent offenders are taken off our roads by the suspension or ultimate removal of their licences.

The overall strategy and implementation options for the AARTQ system were discussed by MINCOM and particular attention was given on identifying the funding that will be required to kick-start AARTQ, since the adjudication of road traffic offences is a new responsibility for the Department of Transport, for which it has not in the past had to make dedicated budgetary provision. The Department is currently looking at determining the best deployment model, and it is anticipated that the model be implemented before April 1st.

RAIL SAFETY REGULATOR
The pending restructuring of the operation of rail in South Africa requires that rail safety issues be addressed as a matter of priority. The concessioning of lines including both infrastructure and rolling stock by Spoornet (a division of the Transnet group) and the restructuring and devolvement of commuter rail to lower tiers of government with a likely parallel concessioning strategy will result in a more complex operational environment and the need for rail safety to be addressed as a core regulatory function of government.

Preliminary investigations by the National Department of Transport suggest the following basic principles for the establishment of a rail safety regulator:
· After an initial investigation of international practice that South Africa adopt an approach generally known as the "safety case model".
· That the Rail Safety Regulator be established as a national government agency at arms length from the Department and independent from any operator. The agency would be similar to that established for civil aviation.
· That funding for the rail safety regulator would be ultimately based on the charging of a levy or user charge for services rendered to the industry.

Approach to the Investigation
It is envisaged that the study will be primarily advisory in capacity. The following issues will have to be addressed.
· A review of the applicability of the "safety case" model in South Africa.
· Interaction with appropriate stakeholders in the establishment of an appropriate regulatory mechanism.
· A review of the agency model and the development of a regulator with
independent status with respect to rail safety.
· A phased approach to establishing a regulator including an estimate of the funding which may be required on set-up.
· An estimate of the appropriate staffing structure and required capacity to implement the regulatory function.
· An operational structure including an approach to management, functional responsibilities, regulatory requirements and financing.
· A review of regulatory conditions, responsibilities mandatory functions and powers of a rail safety regulator.
· Advice on establishing an appropriate piece of supporting legislation.
· A user pays and/or levy approach to funding.
· A funding strategy which maximises value for money and provides appropriate accountability.
· A management responsibility and appropriate set of KPI's to be used by the Department of Transport to ensure the effectiveness of the agency.

ROADS
In the area of road infrastructure, the creation of the National Roads Agency set the pace with respect to commercialising the environment within which road infrastructure is managed, making use of a proxy road user charge to create a user-pays relationship between the road user as customer and the provider of the infrastructure. National roads will continue to be developed by a wholly state-owned agency operating within this commercial context - at arms-length from government, but strategically overseen and regulated through the Memorandum of Understanding between the agency the Minister of Transport.

National roads, however, make up only some 7000 km of the total road network. Provincial and local roads are in a more serious state of decline. In many cases provincial and local roads departments are characterised by inefficient arrangements, spending as much as 60% of budget on overheads and salaries. MINCOM has resolved that the national and provincial roads' authorities should cooperate to implement rationalisation and efficiency improvement programmes. The Northern Province and Eastern Cape have been selected as pilot projects assisted by the National Roads Agency. Legislation has already been tabled in the Northern Province legislature to establish a provincial roads agency.

SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)
South Africa is signatory to the SADC protocol. The role of the department with respect to the SADC Protocol on Transport, Communications and Meteorology is that of Country Co-ordinator for the Transport sector. The scope of the Protocol includes all common policy, regulatory, institutional, operational, logistical, technical, commercial, administrative, financial and human resource issues.

The specific transport sector objectives are:
· to promote economically viable, integrated regional transport services and to ensure the development of an adequate roads network in support of regional socio-economic growth by providing, maintaining and improving all classes of roads;
· to facilitate the unimpeded flow of goods and passengers between and across member states' boundaries by promoting the development of a strong and competitive commercial road transport industry which provides effective transport services to customers;
· to enhance the overall quality of road traffic in the region with the emphasis on promoting acceptable levels of safety, security, order, discipline and mobility on the roads and protecting the environment and road infrastructure;
· to develop and implement harmonised international and regional transport policies in respect of the high seas and inland waterways;

These objectives will be achieved by establishing a common understanding of issues and concerns, harmonising policies and standards, restructuring common institutions and developing facilitating frameworks involving all stakeholders.

HIV / AIDS
Transport and the HIV / AIDS epidemic have a complex relationship, which requires serious and urgent attention. Transport is often labelled as the "vector" of the epidemic, whether it is through people who move through transport, or transport workers, many of whose lifestyles, by the very nature of the industry, increases their risk of infection. The Ministry of Transport initiated a campaign to tackle this issue head-on: both internally - within the NDOT and its stakeholders - and externally - within all the other key sectors of the Transport industry. The short term aim is to make a dramatic impact at the educational and awareness levels, while at the same time implanting co-ordinated policies and structures which empower the industry both to combat the spread and manage the human consequences of the disease as effectively as possible in the medium to long term.

Starting in the road freight sector under the banner of "Trucking against AIDS", the Department has facilitated a partnership between government, employers and labour to tackle the issue in that industry. What has emerged is an energetic partnership, which is taking the message to trucking companies and truckers around the entire country.

Building on this model, the department has recently begun to initiate similar processes in the ports and shipping, rail and aviation sectors. In all sectors we have sought to locate these projects within the structures representing both employers and employees, so as to ensure the sustainability of the campaigns.