Road Infrastructure Roll-Out Plan; Highway Toll Project: briefing

There are a couple of points that concern me that I would like to highlight:

• It is now permissible to proclaim an existing National Road as a Toll Road despite there being no alternate route available thus creating captive communities who are obliged to use and pay for the toll road whilst going about their normal activities. This has come about as a result of a discreet amendment introduced in 1996. This is discriminating and particularly unfair to the captive communities.
• The policy of permitting unsolicited proposals sponsored by civil engineering contractors for the upgrading and tolling of national roads is fraught with problems - less expensive and less complex alternatives will be ignored - may seek to include construction work in which they specialise - include captive communities and financially viable options rather than concentrate on the need.
• The present process of public participation and Impact assessment concentrates on environmental aspects and although social and economic matters are included in the various studies they are treated as secondary aspects in the decision making process. The final document arising from the study and forming the basis of the approval process is the Environmental Impact Report which is submitted for approval to the Ministers of the Environment at Provincial and National level.
• I think we have all fallen into the trap of believing that we must have toll roads because the Government doesn't have sufficient funds to pay for the upgrading and proper maintenance of our roads. This begs the question "then where is the money eventually coming from to pay for these Toll Roads and provide the private sector with a handsome profit?" The answer is of course it is coming from the same source that provides the Government with their funds - yes, from you and me. The difference being that paying through a toll is a far more expensive way for us besides which it is an unfair system creating hardship for many whilst others remain unaffected.
• The Toll Road solution to road construction and maintenance is the most expensive option for it entails additional capital expenditure to provide the complete tolling infrastructure plus ongoing additional running costs to cater for the 24hr running, maintenance, security and administration of the system. When this is run by a private company an additional percentage must be added for profit. This all comes out of the pocket of those unfortunate road users who are obliged to use toll roads whilst together with the rest, they already pay a fuel levy of -+ R1.00 /litre. Historically the fuel levy was used for road construction and maintenance - SANRAL made it known recently that this levy together with other road taxes generates approx R26 billion annually - with this amount of money we could have the best roads imaginable without any need to consider tolling. Unfortunately in 1987 the previous Government saw fit to change the policy - The public are becoming aware of the situation and it is generating a good deal of anger. Perhaps it is time to reverse that policy and accept that it is the taxpayer who pays whichever way we do it - therefore rather choose the cheaper option of adjusting taxes and avoiding toll roads.

(Notes only not verbatim record - prepared by Rear Admiral P.A. Wijnberg)

Appendix 2:
OBJECTION TO THE PROPOSED N1/ N2 WINELANDS TOLL HIGHWAY PROJECT

On behalf of the members of the Elgin, Grabouw, Vyeboom & Villiersdorp Agricultural Association we wish to formally object to the proposed abovementioned toll highway project on the grounds that it is discriminating and will adversely affect not only the viability of our industry, but place an unfair additional financial burden upon the community in the region as a whole.

Furthermore, we submit that there is a need to review the national road maintenance funding policy, for it is generating a shortage of funds which is encouraging the adoption of unreasonable and inflationary solutions.

OBJECTIONS TO THE DRAFT ENVIRONMENTAL IMPACT REPORT

The mere size of the document, contained in three enormous volumes to which will be added the comment from Interested Parties before being submitted for approval as a Final Report, suggests that a thorough and critical study at the right level would be so time consuming that the danger is that approval might be granted after a mere cursory perusal.. As the study will be receive approval from an Environmental point of view there is also the danger that complex and questionable argument on other important aspects such as economics will be glanced over.

The size of the document and the time scales involved has meant that it's distribution has of necessity been very restricted, whilst the time scales involved have precluded close study and comment being prepared in order to benefit meaningfully from the copies distributed to the libaries and the Open Days arranged.

 The question uppermost in the minds of the affected parties must be " what are the direct and indirect costs of this system going to be to me?" This report poses many possibilities and suggestions but does not answer that question, instead it suggests the alarming prospect of the likelihood being, that the answer to the question will only become apparent after the project has been approved, and is beyond being stopped.

 Apart from this, many other economic questions remain unanswered, such as:

• What is the estimated total capital cost of the Toll Plazas and associated infrastructure?
• What is the estimated overall total annual running cost of the Toll Plazas and infrastructure including all off site administrative and security personnel?
• What is the rational for the establishment of the toll tariff and what would the acceptable profit margins be for the concessionaire to have included in this charge?

The detail in the specialist and peer reviews includes much valuable information and comment which needs to be read, as well as some dubious and flawed argument which needs to be recognised, whereas the summary, which is more likely to be read, paints a positive picture in favour of the toll road solution

EFFECT ON THE DECIDIOUS FRUIT INDUSTRY

It should be appreciated that for various obvious reasons production costs over the past ten years have increased beyond all recognition. In particular labour and packing costs have rocketed as have all imported materials such as chemicals, machinery and spare parts plus shipping and all overseas marketing expenses. The producer has no control over these costs neither does he determine the selling price of his produce. All that has saved the industry thusfar has been the advantage gained from a depreciating Rand whilst the overseas fruit prices have remained stable.

It is common knowledge that the decidious fruit industry in this country which enjoys no government subsidies or protection, earns nevertheless considerable foreign revenue for the country despite being required to compete with countries which enjoy such support, including protection against the risks which all farmers face, such as the effects of disease, pests and adverse weather conditions. It is also common knowledge that the industry has for a variety of reasons, in recent years experienced a disasterous financial set back, which has resulted in bankruptcy, liquidations and the sale of many formerly profitable farming enterprises.

To add to the woes of the industry, it has been recently announced that farmers in South Africa will in future be liable to pay rates to their local Municipalities, without any services being provided in return.

The decidious fruit farming industry in South Africa is a major risk operation involving very considerable personal capital investment whilst providing a major source of foreign revenue and employment in the Western Cape, yet recent developments have left the future financial viability of the industry balancing on a knife's edge. A poor season combined with the cumulative effect of the implications of the proposed Toll Roads could likely be the last straw.

IMPLICATIONS FOR THE COMMUNITIES IN THE REGION

As an example, the price of many goods brought into the Elgin,Grabouw, Vyeboom and Villiersdorp area, such as petrol and newspapers are already more expensive than in Somerset West, the reason given being the additional transport costs. It can therefore be quite certain that should this project go ahead, the additional toll fees will be added to the price of all goods sold and services brought from outside into our area. The whole community in our area will be effected however, the poor and unemployed represent a large portion of this community and quite obviously they will be the ones who are hardest hit.

Local community bodies such as the Planning Forums which have put much effort into trying to encourage industry to locate in this area, together with other projects such as those designed to encourage tourism, all of which would stimulate and create job opportunities, will now have their efforts frustrated. There are already indications that certain businesses are considering relocatting due to the mere perceived threat of the Toll Road and it's far reaching implications.

Suggestions that the Toll Road would in itself create significant and sustainable job opportunities in this area, is seen as misleading if not dishonest sales talk.

Somerset West/Strand is very closely connected to this area and many commute on a daily basis. Furthermore, it provides support in the form of our closest major shopping center, medical facilities such as specialists and hospitals, schools for English speaking children and much of the technical support required by both industry and householders. Travel between the two centers is already expensive and beyond the means of many who may for various reasons need to travel to and fro even if this is just to visit family members in hospital. There being no alternate road, means that the mandatory toll fee will seriously disadvantage and affect the well-being and morale of our community.

OBJECTIONS ON THE GROUNDS THAT THERE IS NO ALTERNATE ROAD

It is bad enough that the proposal includes taking over and tolling a large portion of the N2 which has already been paid for by the taxpayer, however we object most strongly to the proposal that the stretch between Bot River and Somerset West be included, thus providing no alternate route and forcing the local community to pay whatever toll charge might be demanded, in order to move in and out of their home area as they go about their normal affairs.

The original Toll Road legislation(Act No 54 of 1971) embraced detailed provisions and safeguards to protect the rights and interests of all road users, and thus avoid disruption and prejudice to local communities, by insisting on the provision and upkeep of viable alternate routes. The amendment to this legislation( as contained in Act No 24 of 1996) on the other hand, almost surreptitiously, withdraws these provisions by making no obvious reference to the subject and in a manner that suggests that there was no desire to draw the attention of legislators to its far reaching implications.

Whatever the intentions were, the present situation is seen as being immoral and very likely unconstitutional.

OBJECTION TO THE PRINCIPLE OF UNSOLICITED BIDS FOR THE ESTABLISHMENT OF TOLL ROADS

The practice of encouraging unsolicited bids for the construction and establishment of toll roads by interested parties discourages the National Road Agency from even looking at alternatives and doing proper Long Term Planning, upon which their medium and short term plans should be based after thorough study of all the alternatives.

Quite obviously any Consortium hired by their principles to propose new toll road ventures will not make any serious attempt to examine or expose more practical and cheaper alternatives nor will they make proposals which would not ensure a healthy profit for the shareholders concerned. This approach is not in the interests of the roaduser, the taxpayer or the economy of the country as a whole.

With legislation as it stands at present, it must also be tempting for such consortiums to include large sections of existing roads which require minimum upgrading and a lucrative return by including a captive clientele on those sections of road where no alternative route exists.

RECOMMENDATIONS

It is recommended that:

• The plans as presently contained in the proposed N1 /N2 Winelands Toll Highway Project be rejected in toto.
• It be accepted that the National Roads Agency Ltd will in future be responsible for the Long Term Strategic Planning for future road construction and upgrading together with the associated Medium and Short term implementation planning.
• In future unsolicited toll road proposals be limited to financially viable projects for new construction roads capable of relying on attracting sufficient traffic from the existing routes which will continue to be maintained by the State.
• The State accept responsibility for the proper maintenance and upgrading of the existing road infrastructure making use of the existing fuel levy tax for this purpose as it was originally intended. The shortfall that this will cause to the central Treasury funds will have to be made up in other ways by the taxpayer.
• That immediate alternate plans be drawn up for the upgrading of the N1/N2 highways as required making use of those State funds as recommended above.