Department of Transport Budget & 2007-10 Strategic Plan: briefing
NCOP Public Services
23 May 2007
Meeting Summary
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Meeting report
PUBLIC SERVICES SELECT COMMITTEE
23 May 2006
DEPARTMENT OF TRANSPORT BUDGET & 2007-10 STRATEGIC PLAN: BRIEFING
Chairperson: Mr
R Tau (ANC, Northern Cape)
Documents handed out:
Department of
Transport Strategic Plan 2007/08 - 2009/10 Powerpoint
Presentation
Filling of
Posts within Department of Transport: Powerpoint
presentation
SUMMARY
The Department of Transport briefed the Committee on its new structure and
noted a change of mission to include social development as well as economic
growth. Full organograms of the various directorates
and programmes were tabled. Focus areas over the next
three years included priority delivery, the needs of
internal and external stakeholders, building capacity to monitor, development
of regulatory systems, meeting of safety & security standards, and
establishment of a single economic regulator for the transport sector.
Particular areas of emphasis would include the 2010 World Cup, improving
quality of and access to transport, transformation of the tax industry and the
taxi recapitalisation programme,
restructuring passenger rail, Gautrain, integration
of road networks and extending the national network and reforming the Road
Accident Fund. Subsidies, regulatory systems, the accident rate, law
enforcement and safety education programmes would
receive attention. The Department gave a detailed presentation on the filling
of posts, noting that challenges lay in recruiting scarce skills and skills
particular to road transport. The budget allocations since 2003 were set out
and discussed. The budget for 2007/08 was R15,8
billion. There had been under spending in the previous year and there was a
request for permission to roll over funds to delayed projects.
Questions by Members addressed the relationship with the South African
National Civic Organization (SANCO), introduction of subsidies for taxis, rail
security, the unfunded posts, the need to build municipal capacity, the
implementation of the new legislation, lack of non motorised
transport for scholars, whether there was a special credit arrangement for taxi
owners, the rail link from Umtata to East London and
problems of fraud and corruption. Further questions related to
the scrapping of unroadworthy vehicles, the single
transport economic regulator, passenger rail services, the monorail proposal,
and progress reports on Shosholoza and the Upington Cargo Airport.
MINUTES
Department of Transport (DOT) Budget and Strategic Plan 2007-2010 Briefing
Ms Mpumi Mpofu,
Director-General, DOT, stated that the DOT had a new structure and had changed
its mission to include social development as well as economic growth. Full organograms of the various directorates and programmes were tabled. The focus areas over the next three
years included priority delivery, with a focus on getting the largest possible
numbers of people moved in the shortest possible time, the
needs of internal and external stakeholders, transport users & the general
public, the need to build capacity to monitor and oversee public entities that
reported to the Minister, development of regulatory systems and capacity to
ensure operators met safety & security standards, and establishment of a
single economic regulator for the transport sector.
The key areas of input were the 2010 Soccer World Cup, improvement of the
quality of and access to transport, transformation of the taxi industry through
Taxi Recapitalisation programme.
restructuring of passenger rail services, the Gautrain Development, implementation of the freight
logistics strategy, integration of road
networks, and putting the Road Traffic Management Corporation (RTMC) into full
operation. It was also intended to reform the Road Accident Fund (RAF). There
would also be restructuring of public transport subsidies, development of
regulatory systems and capacity, attempts to curb road accidents and fatalities through law
enforcement, road safety education and communication programmes,
implementation of the new road safety strategy, and incorporation of 3 000 km
of provincial roads into the national system.
The greatest challenges lay in access, safety, security
and consumer choice. The culture of service provision would have to change. The
service delivery environment and challenges were set out. Service delivery and
regulation through the various regulatory and supervisory bodies was set out
and the different focus areas of each body was
explained.
Ms Mpofu presented a separate briefing, describing
the filling of posts in DOT. She said that the structure of DOT had expanded,
described that the structure of DOT had expanded to 7 branches and 619 new
posts. The Departmental growth since 1998 was listed, and tables were presented
of the funded posts according to level, projected growth, current and projected
vacancy rates. The challenges were listed as including the shortage of high
skills levels such as project management, contract management and policy
analysis, and the lack of specialised transport
skills, some of which were being addressed through centres
of development and scholarships for study.
The Department had seven programmes. The budget for
each was set out and the major projects explained. The budget allocations since
2003 were tabled and it was indicated that the 2007/08 budget was R15,8 billion. The under spending across various programmes for 2006/07 was tabled and explained. In
particular Ms Mpofu stated that in 2006/07 the
scraping of taxis for safety requirements was delayed. Currently, 3 000 had
been scrapped , which had been a significant
improvement. The larger provinces were last to come on board, and Gauteng began the process in March of 2007. The Independent
Board Regulator was up and running. It was said that there had been significant
success in increasing railway safety since the introduction of railway
security, especially in the Eastern Cape. The Minister of Transport would
address the issue of the Information Technology (IT) system in the future. With
the shut down of computers came a worsening of the backlog, but now that the
problem had been solved, the new system ran at a 65% percent better rate.
Details of each of the programmes
was set out in the lengthy presentation slides (see attached document).
Discussion
Mr M Mzizi, (IFP, Gauteng) was interested in finding out the relationship
between the Department and the South African National Civic Organization
(SANCO). Mr Mzizi also
wanted to find out why buses received better subsidies than taxis, when there
were so few people who used buses as a mode of transport.
Ms Mpofu replied by stating that the relationship
between the Department and the Organisation was good, and that
any questions about taxi re-capitalisation have been
eliminated. In fact SANCO had assisted in finding vehicles that were not road
worthy.
Mr K Pillay, Acting Deputy
Director-General: Public Transport: DOT, stated that there had been growth in
the usage of public transport, which was a factor that showed improvement in
the economy. The fact that taxis were not benefiting from subsidies would be investigated
in June of this year
Mr Mzizi enquired the
situation in regard to rail security in Gauteng
Province, since he had seen none, when going past the station. He also asked
for further information on unfunded posts. He asked whether there was a remedy
to the situation.
Mr Pillay answered that the
South African Police were deployed to the rail network and so far, about 700
police had been deployed in the Western Cape, and 250
in Gauteng. He also added that for the current
financial year the
Department would provide contact points in Gauteng.
The intention was to have mobile units of police deployed in all provinces.
Ms Mpofu replied to the question of unfunded posts by
stating that the Department was funded incrementally as it grew, and hopefully
this problem should be reduced to zero by 2010
Ms M Oliphant (ANC, KZN) wanted to know about the relationship between the
National and Provincial Departments as well as local government.
Mr Mathabatha Mokonyama, Acting Deputy Director General: Planning: DOT,
stated that inter-governmental relations were not a problem, that it was better
if different spheres of Government approached each other.
Ms Oliphant stated that there needed to be capacity building at municipal
level. She asked if there was a way of encouraging buses in the rural areas, as
rural people tended to use vans because of road infrastructure. She asked if
the National Land Transport Transition legislation (NLTTA) had been
implemented, and what obstacles were being faced. She also made a comment about
training employees when they do not possess driver’s licenses.
Mr D Pretorius, Acting
Deputy Director-General: Management Services: DOT, stated that not all
Municipalities had problems with capacity
Ms H Matlanyane (ANC, Limpopo)
asked about lack of motorised transport in certain
areas, commenting that it was difficult for scholars who were expected to
travel long distances. She asked if there was anything that could be done to
solve the problem
Mr Pillay stated that there
were in fact advanced drivers' training courses, where an ordinary driving licence would be required in order to qualify for
attendance. He said that there would be a law enforcement strategy worked out
between the Department and the South African Police Service (SAPS) to make sure
that these rules were followed.
Mr Mokonyama responded that
there would be monitoring of the implementation of NRTTA, and the amendments
would try to eliminate any challenges. He said that when it came to rural
transport there was a draft that would be ready for approval in the next month.
He answered Ms Matlanyane’s question by saying that
bicycles had been distributed to students who did not use motor transport, and
the Department was trying to reach distribution of 100 000 bicycles.
Ms B N Dlulane (ANC, Eastern Cape) wanted
clarification on vacancies that were not filled. She stated that she was
unhappy that posts would be cut if they remained unfilled after six months.
Ms Mpofu responded that the ‘use it or lose it’
principle was drastic, but it was also not good to remain with unfilled posts.
She mentioned various reasons for having to eliminate the post after 6 months,
including the fact that the function may not be necessary, there may be no
appropriate candidate or the post may be task orientated, and a contract may be
preferable to a permanent position.
Ms Dlulane asked if taxi drivers would have a problem
insofar as the credit bureau was concerned when buying new taxis.
Mr Pillay replied that
there was a new mechanism in place when applications for finance were received,
and that taxi drivers in vehicle debt should be cleared. He said that there had
been an 80% success rate.
Ms Dlulane also mentioned that the MEC had pronounced
that a railway would be opened from East London to Umtata,
but this had not materialized, and the MEC had said the budget was part of the
Department.
Mr Pretorius said that the
problem was not the budget, in fact the railway had
been completed. Unfortunately there was no operator for the line.
Rev P Moatshe (ANC, North West) wanted to find out
how the Department dealt with fraud and corruption.
Ms Mpofu said that the fraud and corruption unit
faced challenges with drivers' licenses, as that was where fraud was most
likely to occur. The Department was working on trying to eliminate the
possibilities for it.
Rev Moatshe also asked about the scrapping of taxis,
and the criteria that were being used.
Ms Mpofu said that unroadworthy
and old vehicles were to be scrapped, and that was the criteria that the
Department used. If a vehicle was road worthy, then there was no need to take
it off the roads.
Rev Moatshe asked about the single transport economic
regulator, and wanted to know what Shosholoza was?
Ms Mpofu explained that the Shosholoza
rail was a long distance rail in the Transnet stable,
but after Metrorail was transferred,
all passenger rails would belong under the one umbrella.
Ms H Matlayane asked if the Department foresaw any
problems with Gautrain, as the graphs indicated that
there would be a decline in 2007/08. She asked if the Director-General had any
concrete plans for addressing the state of transport currently. She also wanted
to know the details of Monorail.
Ms Mpofu answered that the Department will need to
work out a strategy and plan of action when it came to public transport. She
also said that the proposal for Monorail would be presented to the Gauteng Province.
Mr Pillay responded that in
relation to Gautrain, both the Department of
Transport and the National Treasury contributed. The funding was only
forthcoming when there was a work programme of the
construction phase, and it was based on deliverables and milestones achieved.
The Chairperson stated that there was a problem in the public transport system,
especially the Shosholoza rail. He asked if the
Director General could see to this problem.
Ms Mpofu replied that Transnet
has defined Shosholoza as a freight rail system, but
the Department wanted to change it to passenger, and through this, it would be
able to attract
investment programmes.
The Chairperson was concerned also with poor road infrastructure.
The Chairperson requested a progress report on Upington
Cargo Airport, and wanted to know who the targeted beneficiaries are.
Ms Mpofu said that a formal proposal would be considered
when it came to Upington Cargo, and there would need
to be further consultation with the Department. She went on to say that the
reason there was a cargo airport was to avoid duplication, and that not every
province could have one.
The Chairperson enquired about the 2010 World Cup planning, and what was to
happen afterwards
Ms Mpofu stated that there was a close alignment
between 2010 and transport, and that programmes were
running concurrently and would be absorbed into the Transport Department after
2010.
Ms Oliphant (ANC) wanted to know about the management of road agencies, and how
the Department monitored these, especially in regard to funds. She also stated
that there was a commitment by the Minister in regard to a workshop on
transport that was chartered for business people.
Ms Mpofu said she would remind the Minister of his
promise. She also talked about the issue of viability that was raised by a
Member of the Select Committee, that had been raised
by Spoornet. The Committee should feel free to come
back with any further questions.
The meeting was adjourned.
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