He said about 80 percent of motorists using Gauteng’s e-tolled highways would pay less then R100 a month.
“Nobody passes 42 gantries everyday,” he said.
Responding to a question on whether government had considered the harsh effect e-tolling would have on tourism with regard to tourists renting cars, Vadi said, “If we don’t upgrade the road system, your clients will sit longer on the road because of congestion.”
Vadi called on citizens to have a balanced perspective on the e-toll issue. “Think of the implications on carbon omission, and the maintenance of your car because you’ll be stopping time and again during congestion,” he said.
“If we had the money, we would have done it (paid for the upgrade) as government.”
The proposed toll tariffs per kilometre published in the Government Gazette and open for public comment until 8 November are:
Class A1 (motorcycles): 35c/km standard, 18c/km e-Tagged; Class A2 (light vehicles): 58c/km standard, 30c/km e-Tagged; Class B (medium heavy): 145c/km standard, 75c/km e-Tagged; Class C (large heavy): 290c/km standard, 150c/km e-Tagged.
The Department of Transport appears set on pursuing a second choice funding methodology instead of honestly and constructively engaging with their stakeholders to explain clearly why the more efficient fuel levy cannot be considered. Road users are not saying they won’t pay for the improvements, but are understandably concerned about the inflated costs and inherent issues with the ORT system.
Hence, if the fuel levy were paid to SANRAL to fund the debt, this would ensure that all road users would contribute and the burden would be shared equitably by all vehicles in terms of their fuel consumption. The fuel levy also guarantees that motorists pay for the use of the roads, irrespective of where they drive, which would help to prevent the degradation of secondary roads.
Unfortunately the increase in inflation as a result of the additional cost to motorists and the freight industry will be reflected in the price of services and goods, basic foods included, which will then have a knock-on effect to the most vulnerable in our community who already have to try and survive after the recent electricity increases and the many other administered prices. Local tourism will also suffer, as the increased cost of travelling in and around Gauteng will reduce the disposable annual income of Gauteng residents by several thousand Rand. For fleet owners and car rental companies, costs will be increased not only by the tolls but by the need to invest in human resources and systems to audit and process toll fees. These additional costs will then be passed on to the consumer. It is estimated that the average daily rental cost could increase by R30 (10%) due to toll fees alone. While administration of the ORT may help to create a few hundred jobs, there is a real risk that thousands of jobs in tourism destinations and in outlying rural areas could be lost. These increased costs will also have an impact on the cash flow of small businesses, as they will have to build these costs into their prices and carry them from the time of toll transaction to when their customer pays the invoice. An emerging business struggling on thin margins may well have to close due to such additional costs.
Road users are not saying they won’t pay for the improvements, but are understandably concerned about the inflated costs and inherent issues with the ORT system. Which is a more practical solution, e-tolls or the tried & tested fuel levy?