1. PRESENTATION TO PARLIAMENT’s PORTFOLIO COMMITTEE ON TRANSPORT 16 th February 2005 REVISED TAXI RECAPITALISATION PROJECT

2. Department of Transport Content 1.Introduction 2.Cabinet Decisions 3.Public Transport Review 4.Implementation of Cabinet Decisions 5.Stakeholders consulted 6.Time frames 7.Conclusion

3. Introduction  The Taxi Recapitalisation Project (TRP) seeks to replace the current aged and unsafe taxi fleet  The TRP also seeks to promote access and mobility to public transport for people with special needs.  The TRP is one of the interventions by Government to improve and sustain the public transport system in South Africa  The 2010 Soccer bid presents a golden opportunity for the Transport fraternity to invest more in transport

4. Cabinet Decisions on the revised TRP  Cabinet approved the termination of both the tender processes of the New Taxi Vehicle (NTV) and Electronic Management System (EMS).  However, the replacement of the aged and unsafe taxi fleet remains at the core revised approach.  The replacement of the unsafe and aged taxi fleet will be pursued in a non-tender format.  The revised approach will see the publication of NTV specifications that increase road safety through Regulations published by the Minister of Transport.  The revised approach will introduce taxi vehicles with various seating bands.

5. Cabinet Decisions (continued)  Promotion of accessibility to public transport for people with special needs will still be retained.  A once-off scrapping allowance of R50,000 will be made available to legal operators upon handing over of the Old taxi vehicle for scrapping.  The R50,000 incentive is not attached to the purchase of the NTV, and upon receipt thereof, the operator may decide to exit the taxi market.  The roll out of the TRP will be over a seven year period, starting in 2005/06 financial year

6. Public Transport Review  The Department currently reviewing its public transport strategy and distribution spend on subsidies  Travel patterns confirm that the taxi industry plays a pivotal role in the facilitation of the movement of people and economic activity in South Africa.  The review seeks to promote integration and consolidation of public transport system and operations.Therefore the integration of the taxi industry into the public transport arena is of strategic importance.  Effective regulation and strengthened law enforcement strategies are key not only to the TRP but the general promotion of appropriate and efficient public transport system.

7. Implementation of Cabinet Decisions on the TRP  The Inter-Departmental Committee (IDC) with other Departments and external stakeholders has already in place and functioning very well  The following stakeholders are represented in the IDC: The Presidency (Office on the Status of the Disabled Persons). (OSDP) Minerals and Energy Affairs (DME) National Treasury (NT) Environmental Affairs and Tourism (DEAT) Trade and Industry (the dti) Government Communications and Information Services (GCIS) National Intelligence Agency (NIA) National Intelligence Co-ordinating Committee The South African Bureau of Standards (SABS)

8. Phase One Phase One (October 04 – December 2004) Completed the review of the Revised Taxi Recap Project with Provinces as per MINMEC decision. Extensive consultation with the Taxi industry on the revised approach completed. Cabinet decisions on the revised approach communicated to affected Departments through the IDC. Popularization of the Cabinet decision and informing stakeholders

9. Critical Success Factors (for future phases)  Establishment of a scrapping agency  Accurate Operating Licensing Strategy (OLAS)  Provincial readiness  Law enforcement comes a critical means to coerce operators to recapitalise immediately without delays  Communication

10. Phase Two: Preparatory phase Phase Two: (December 2004-end March 05) Draft safety requirements and Regulations being finalised. Provincial readiness for the roll out of the TRP being assessed Scrapping Agency and Administration Process being developed Identification of possible legislative amendments and requirements Law enforcement plan with cost implications being developed Communications plan being developed

11. Phase Three: Phased rollout Phase 3: April 2005- 2014 Actual scrapping of the existing minibus taxi vehicles. Enforcement of the published Regulations General effective law enforcement in the public transport arena. Payment of the scrapping allowance to operators Purchasing of the new taxi vehicle consistent with the published safety requirements. Streamlining of the public transport system.

12. Stakeholders Consulted The following stakeholders have been consulted so far regarding the revised approach:  The Motor Industry  The South African National Taxi Council  Provinces  The South African Bureau of Standards  The Inter-Departmental Task Team

13. Timeframes  End of February 2005 targeted for finalisation of draft Regulations for publication of the safety requirements, to be presented to MINMEC.  Presentation to MINMEC on the 4 th March 2005 regarding the draft Regulations on safety requirements and report back on the readiness of Provinces for the roll out.  Consultative process with vehicle manufacturers to indicate the need to stop production of the current non-compliant taxi fleet, targeted for March 2005.  Mid March 2005 targeted for closure of the public comment session.  End of April 2005 targeted for the publication of the final regulations.

14. Timeframes (continued) Consultation with the South African National Taxi Council targeted for second week of March 2005. Initiation of Provincial road shows with SANTACO, Provincial Taxi Councils, Provinces to popularise the safety requirements, readiness of Provinces etc after MINMEC endorsement of the draft Regulations and the safety requirements by the 4 th March 2005.  End of August 2005 targeted for the finalisation of the Business process for the implementation of the Scrapping Agency and Administration process.  Consultation with the NCOP regarding the amendments to the NRTA and NLTTA during the month of March 2005.

15. Conclusion It is critically important to note that the successful implementation of the TRP will go a long way towards addressing key public transport challenges. However, the TRP on its own will not resolve all challenges facing the taxi industry in South Africa.

16. Closure SIYABONGA!