Minister Ndebele calls for ring-fencing of roads budgets, March 11 2010
Transport Minister Sibusiso Ndebele has called for the ring-fencing of budget allocations for the construction and maintenance of road infrastructure. "One of our challenges is that much of the budget allocation for the construction and maintenance of road infrastructure is done on an equitable share basis. What we see is that these budget allocations are then utilised to address other provincial and local priorities and not roads. We are therefore in discussions with National Treasury so see how we can effectively move to ring-fence funding for roads and other forms of infrastructure. We also want to accelerate the process to introduce new maintenance technologies.
"Our road network is currently benefiting from government investment of R70 billion in a three-year funding period. These include R23 billion for Gauteng Freeway Improvement Project as well as R3 billion allocated to rural development throughout the country as part of the Expanded Public Works Programme (EPWP).
"The estimated total proclaimed road network in South Africa is 535 000 km. As early as 2001, the Department of Transport reported to Cabinet that funding for roads had fallen to a level where it cannot fully finance the maintenance needs of the existing network. While subsequent Medium Term Expenditure Framework (MTEF) allocations for roads have been growing, the growth was from a small base.
"There is no maintenance backlog on the national road network. However, we need to move towards a provincial and local emphasis where we replicate the systems at national level which allow for a maintenance and construction programme which is world-class. Nationally, for instance, we have a system which addresses potholes within 48 hours.
On one hand, the issue of potholes also reflects a lack of funding to address projected backlogs and identified gaps. Even though this year we are investing R18 billion on roads throughout the country, this is not enough. "The 2000/01 to 2007/08 National Treasury's trends in intergovernmental finances said aggregate expenditure on roads grew from R8.2 billion to R9.2 billion. In contrast, the investment requirements for the roads sector were calculated to be in the order of R64 billion over five years starting with the 2003/04 MTEF. This means that we have been under-funding our own requirements and projections.
"Strides have been made towards improved funding of roads through the user-pay principle. This has resulted in the road sector spending R9.7 billion without relying on the fiscus. Other interventions to protect the road network include the overload control strategy. This has seen an increase in the number and operations of weighbridges on the country's busy corridors and the establishment of industry self-regulation in the form of the Road Traffic Management System. The system targets freight that moves mainly on the secondary road network.
"We are gathering information on the extent, condition and investment requirements of all roads authorities in the country so that a composite picture can be drawn and effective plans and strategies implemented. Additional allocations for the roads sector in the EPWP and the implementation of a rural transport strategy will go some way towards improving access and mobility in rural areas," said Minister Ndebele.
Statement issued by the Department of Transport, March 11 2010
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