20 April 2012
President Jacob Zuma
The Presidency
Union Buildings
Pretoria
0001
Copy:
Mr Robert Ngobeni (Presidency)
National Executive Committee
Secretariat
Members of the Media
Dear Honourable President Zuma,
OPEN LETTER: GAUTENG E-TOLLING
Our previous letter (dated 13 January 2012) in which we requested an urgent meeting with your good self to discuss the then proposed implementation of the Gauteng e-tolling system, refers. For reasons unbeknownst to us, we have as yet not received a response from your office.
In this letter we highlighted our National Executive Committee (NEC) decision in September 2011 to join the COSATU Section 77 process at NEDLAC, as well as the vast complaints received from members and negative feedback at public hearings on the process. We appealed for “your strategic leadership in the resolution of this serious matter” which we felt could “be resolved by bringing the relevant Social Partners around the negotiating table”.
We asserted then, and still assert that “FEDUSA has a proud legacy of prioritising social dialogue and engagement over adversarial tactics, rather working towards strengthening the fabric of our democratic and diverse society”. While we note the civil disobedience route taken by many role-players in our country, FEDUSA will never urge its members to break the law.
During our Management Committee yesterday (19 April 2012) we again had a lengthy debate on this matter, and resolved to write an “open letter” to you – highlighting our concerns and again requesting you to engage on the issue.
Our main concern regarding the process as it unfolded is the total lack of transparency. When the work on the Gauteng roads commenced, most people thought it to be mere infrastructure maintenance in preparation for the 2010 FIFA World Cup. There was no direct indication and no proper prior consultation with interest groups about any future tolling costs at that stage. This lack of transparency continued since the first indication of possible costs to road users and we believe there is still a lack of a clear and open agenda on the matter.
While we welcome the concessions made by the Minister of Finance in his Budget Speech earlier this year, with specific reference to R5,8 billion allocation from the fiscus to alleviate the burden on motorists and the capping of the monthly amount payable, our second overarching concern is the fear tactics used by the South African National Roads Agency Limited (SANRAL) to coerce users to register for e-tolling.
There are currently various legal opinions circulating amongst our members and we are aware of the respective litigation processes under way through community organisations and interest groups. Still, we have decided neither to comment on these opinions and nor to join, at this stage, the processes of legal action. Rather we resolved to take the high road and engage with our social partners to address our concerns as a first step.
As stated by the Minister of Finance in the 2012 Budget Speech, Government “will carefully evaluate future road infrastructure funding”, and we eagerly await his promise regarding “the further development of efficient and cost-effective public transport systems” receiving “the urgent attention of the Department of Transport”. FEDUSA made several resolutions regarding upgrading public transport in South Africa and initiatives like e-tolling and the Administrative Adjudication of Road Traffic Offences (AARTO) stand to be judged as very unfair if there are no alternative forms of public transport provided by the State.
In addition, we appreciate the introduction of Gautrain, and many members report that they use the Pretoria-Sandton service on a daily basis. We also note the success of this project as a Public-Private-Partnership (PPP) and urge Government to use this model extensively in expanding passenger rail services further, as well as for the well-received comments made by your good self regarding increased investment in infrastructure during your State of the Nation Address.
In this spirit, we must put on record that we appreciate the value added by this R20 billion investment in road improvements and the resultant positive effects on motorists, productivity and the economy of the Gauteng province in general. However, we also need to note the general dissatisfaction of our members and other citizens in the increased financial burden caused by the e-tolling process, as well as the hopes that alternative funding mechanisms can be identified.
This dissatisfaction is, to our minds, mostly related to the setting of tolling prices in the light of the perceived lack of transparency and what some have called state-endorsed profiteering by SANRAL. Our Management Committee therefore resolved yesterday to seek an advisory opinion from the Competition Commission regarding the setting of toll prices and with a view to the possible establishment of a regulatory body to oversee the balancing of interests in this process.
We therefore again request the Presidency to call an urgent meeting of all social partners (Business, Government, Community and Labour) to urgently discuss the public concerns regarding this matter, and we will appreciate your favourable response to our request to be made urgently – ideally before the end of April 2012 so as to avoid further dissatisfaction.
Please feel free to contact me personally if you require additional information.
Yours faithfully,
Dennis George
General Secretary
084 805 1529