A NEW dispensation for e-tolls reduces fees for unregistered users by almost half and makes payment a condition of receiving a renewed licence.
The government hopes the move‚ announced on Wednesday by Deputy President Cyril Ramaphosa and a host of cabinet ministers‚ will restore consumer and investment confidence in the South African National Roads Agency (Sanral)‚ which has suffered a double whammy of nonpayment by road users and a rebuff from the bond market.
While market players were cautiously optimistic‚ calling the announcement “a start” to restoring market confidence‚ anti-tolling consumer groups remained steadfast in their rejection‚ saying the discounts amounted to little and the proposed enforcement mechanism was open to legal challenge.
Sanral‚ which completed the Gauteng Freeway Improvement Project in 2010 at an initial capital cost of R50-billion‚ must raise R250-million a month in toll fees and R600-million a month from the bond market to service debt and road maintenance.
In recent months‚ toll revenue has been on a downward trend‚ with only R72-million raised in December. Bond auctions were suspended after a failed one in April.
The new dispensation includes a tariff of 30c/km for all motorists. Previously‚ only those with e-tags paid this‚ while those without were billed at 58c/km. The rate applies only to those who settle their accounts within 30 days‚ or double fees apply.
Toll fees will now be capped at R225 a month‚ from R450‚ and there will be no charges for people who pass under fewer than 30 gantries a year. Penalties on unpaid accounts will be capped at R450. Fees that are currently outstanding will be discounted by 60%‚ with six months to pay.
Ramaphosa said the new dispensation entrenched the user-pays principle but was also a “fresh start”.
It was also the start of restoring market confidence‚ he said. “With this we believe Sanral will be able to go out to the market and raise money.”
The discounts will result in a projected revenue shortfall of R390-million a year‚ which Ramaphosa said would be borne by the national government and the Gauteng provincial government. Both will table appropriation bills to enable the transfer.
But questions remain over the likelihood of compliance given the strident rejection of the plan by the Opposition to Urban Tolling Alliance (Outa).
Outa spokesman Wayne Duvenage said the tariffs had not been lowered as motorists with e-tags already paid a rate of 30c/km. “Government has merely removed the punitive tariff‚ which no one was paying anyway. If the public were to pay in the past they would have purchased an e-tag.”
Transport Minister Dipuo Peters said the linking of motor vehicle licence renewals to payment was the key to enforcement. She said she was aware legal changes would be required to do so‚ but did not elaborate.
In a booklet released on Wednesday‚ the government recognised that it would not be lawful‚ even after legislative changes‚ to refuse the registration renewal of a motor vehicle.
In a curious phrasing‚ the booklet says: “Licences will be renewed but if there are outstanding toll fees the licence disc itself will not be issued.”
The Justice Project of SA‚ which has lobbied against e-tolls‚ said the phrasing was “nonsensical”.
Credit analysts were cautiously optimistic. Conway Williams‚ investment analyst at Futuregrowth‚ said: “It is positive‚ for instance‚ in its acceptance of the user-pays principle‚ but we would like more information.”
Rand Merchant Bank credit analyst Elena Ilkova said: “We would like more details on Sanral’s finances. One problem is that (it) assumes collection of toll fees. I would like to know whether there is certainty of this and‚ if not‚ what is the plan for further support to Sanral.” — BDLive
Move to reduce e-toll fees, improve collection
The government hopes the move‚ announced on Wednesday by Deputy President Cyril Ramaphosa and a host of cabinet ministers‚ will restore consumer and investment confidence in the South African National Roads Agency (Sanral)‚ which has suffered a double whammy of nonpayment by road users and a rebuff from the bond market.
While market players were cautiously optimistic‚ calling the announcement “a start” to restoring market confidence‚ anti-tolling consumer groups remained steadfast in their rejection‚ saying the discounts amounted to little and the proposed enforcement mechanism was open to legal challenge.
Sanral‚ which completed the Gauteng Freeway Improvement Project in 2010 at an initial capital cost of R50-billion‚ must raise R250-million a month in toll fees and R600-million a month from the bond market to service debt and road maintenance.
In recent months‚ toll revenue has been on a downward trend‚ with only R72-million raised in December. Bond auctions were suspended after a failed one in April.
The new dispensation includes a tariff of 30c/km for all motorists. Previously‚ only those with e-tags paid this‚ while those without were billed at 58c/km. The rate applies only to those who settle their accounts within 30 days‚ or double fees apply.
Toll fees will now be capped at R225 a month‚ from R450‚ and there will be no charges for people who pass under fewer than 30 gantries a year. Penalties on unpaid accounts will be capped at R450. Fees that are currently outstanding will be discounted by 60%‚ with six months to pay.
Ramaphosa said the new dispensation entrenched the user-pays principle but was also a “fresh start”.
It was also the start of restoring market confidence‚ he said. “With this we believe Sanral will be able to go out to the market and raise money.”
The discounts will result in a projected revenue shortfall of R390-million a year‚ which Ramaphosa said would be borne by the national government and the Gauteng provincial government. Both will table appropriation bills to enable the transfer.
But questions remain over the likelihood of compliance given the strident rejection of the plan by the Opposition to Urban Tolling Alliance (Outa).
Outa spokesman Wayne Duvenage said the tariffs had not been lowered as motorists with e-tags already paid a rate of 30c/km. “Government has merely removed the punitive tariff‚ which no one was paying anyway. If the public were to pay in the past they would have purchased an e-tag.”
Transport Minister Dipuo Peters said the linking of motor vehicle licence renewals to payment was the key to enforcement. She said she was aware legal changes would be required to do so‚ but did not elaborate.
In a booklet released on Wednesday‚ the government recognised that it would not be lawful‚ even after legislative changes‚ to refuse the registration renewal of a motor vehicle.
In a curious phrasing‚ the booklet says: “Licences will be renewed but if there are outstanding toll fees the licence disc itself will not be issued.”
The Justice Project of SA‚ which has lobbied against e-tolls‚ said the phrasing was “nonsensical”.
Credit analysts were cautiously optimistic. Conway Williams‚ investment analyst at Futuregrowth‚ said: “It is positive‚ for instance‚ in its acceptance of the user-pays principle‚ but we would like more information.”
Rand Merchant Bank credit analyst Elena Ilkova said: “We would like more details on Sanral’s finances. One problem is that (it) assumes collection of toll fees. I would like to know whether there is certainty of this and‚ if not‚ what is the plan for further support to Sanral.” — BDLive
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