Dear Sir,
Regarding the issue of the ‘e-tolling’ of the Gauteng freeways, I believe that the government needs to understand why there will be a groundswell of anger if they go ahead and toll our freeways. When the majority of our poorer citizens realise that the consequential and considerable increase in the costs of basic foodstuffs, travel costs, etc., the tragedy that was Marikana will look like a storm in a teacup. When Moms & Dads all over the country realise they cannot afford to clothe their children, give them a small lunch box for school, etc., anger will begin to abound in the hearths of millions of homes in our country.
The recent announcement that the e-toll system will be implemented on Gauteng freeways has made it clear that the ANC government are committed to going ahead with this iniquitous system.
The ANC government should carefully consider the following:-
1. For hundreds of years, authorities have built ‘public’ roads, travelled on at no direct cost to the user, to stimulate economic growth (‘public’ implies ‘not private’). The costs to the user of this tolling project will very definitely stifle economic growth, as well as having a considerable inflationary effect.
2. Our ministries of transport have been allocated budgeted amounts, year after year, to maintain existing roads. It is a matter of record that these budgets constantly remained largely unspent. Why ? Where did the money go ? The then incumbent Gauteng Minister of Transport, Ignatius Jacobs, offered the response that they couldn’t find the suitable people to do the maintenance !
3. Historically, a large component of the fuel levy we pay is for road maintenance. Where has this money gone ? If someone changed allocation of fuel levies, who made the decision ? –and why were we not advised of this ?
4. The fuel levy we the public (bus/taxi users, commerce & industry, private individuals) currently pay comprises over R3 per litre.
5. If 20cents is added to the fuel levy this will yield R27billion, we are told.
6. The transport /road authorities have said that an amount levied nationally on fuel to fund Gauteng freeways ‘is not fair’ is patently not true. This ongoing levy will benefit roads nationally.
Various authoritative sources, have suggested figures of an additional 16 cents and 36 cents per litre (depending on how the cost is amortised) on the fuel price would have covered the entire cost of the freeway improvement project, with negligible collection costs and greater accountability. These amounts, in terms of
an average size passenger vehicle (10k/litre), would translate to a cost of between 1 cent and 4 cents per kilometer of freeway travelled (instead of the 40, now 30 cents our government is legislating) – and all the money collected via the fuel levy would go directly to funding the Gauteng Freeway Improvement Project, as well as ongoing maintenance on national roads.
7. An Austrian company has been ‘appointed’ to administer the project. Why ? What selection criteria were used ? Why should we be paying the billions in outflow to a foreign country that this arrangement entails ? Was the decision made because it would then be easier for a corrupt government / individuals in government and/or the governing party to have part of that money re-directed back to themselves, without the citizens of the country knowing ?
8. Most importantly, the inflationary effect of e-tolling Gauteng freeways is, even to the simplest of minds, very obvious. Every goods-bearing truck will be paying heavily for use of the ‘freeway’. According to our country’s professional economists, the inflationary effect will be significant ! This will also result in increased costs for, amongst many other commodities, basic essentials. Whilst the very wealthy can survive inflation without any real problems, the vast majority of South Africans families, including middle, lower middle income and lower income, are adversely affected by it.
9. It is a fact that lower income families are already financially stretched to breaking point. The inflationary effect of the government’s grand scheme of Gauteng’s e-tolling project will lead to increased wage demands across the board, leading to widespread strikes across industry & commerce. Is there any wonder why COSATU is standing steadfast against the project ?
10.The fact is that the cost-effect of the Gauteng freeway improvements e-tolling project on inflation is much greater than it needed to be. Why is the answer to this question still not forthcoming ?
The tragedy of Marikana occurred because of poor management of an explosive situation –with tragic results- from the side of organised labour, company management and government.
Think again Jacob Zuma and the rest of you in the ANC - you who are supposed to be the caretakers of our nation’s future ! The writing is on the wall and you will stand alone on this one.
You provoke the righteous anger of our people at your peril !
Sandy Johnston
Rivonia
Johannesburg
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