E-tolling - SANRAL misleading public about lack of funds

Two independent studies by the Automobile Association of South Africa (AA) and the Southern African Bitumen Association (Sabita) confirm that the South African Roads Agency Limited (SANRAL) is misleading the public.

SANRAL has argued that a fuel levy to fund road infrastructure and maintenance is insufficient, and that e-tolling is therefore necessary. However, two independent studies confirm that the fuel levy provides enough funding for the construction and maintenance of our roads and that there is no need for the wholesale construction of toll roads.

I will write to the Chairperson of the Portfolio Committee on Transport, Ruth Bhengu, requesting that she summon the CEO of SANRAL, Nazir Alli, and the Minister of Transport, Ben Martins, to account for their failure to adequately explore the use of the fuel levy to fund road maintenance and that these two reports be tabled before the committee for its detailed consideration.

The AA study conducted in 2008 reveals that abolishing the dedicated fuel levy in 1988 resulted in significantly less spending on road infrastructure and maintenance, resulting in the deterioration of the quality of our roads. It shows that an ideal maintenance budget for roads should have totalled R 32 billion in 2008.

The Sabita study indicates that government only spent an average of R 7.4 billion per year on road construction and maintenance between 2003 and 2008. The 2013 Budget Review indicates income from the fuel levy for the same period averaged more than R 21 billion. Questions must be asked why the nearly R14 billion was not spend on road maintenance in the first place.

This same question must be asked this year. The fuel levy is estimated to bring in R 41.7 billion in the 2013/14 financial year. From the graph, compiled from information within the reports and the budget review, it is evident that the bulk of fuel levy funds between 2003 and 2008 have been used elsewhere and not for the use of maintenance projects. A similar trend occurred in the previous decade.

There is a need for funding to help eliminate the country's road maintenance backlog but the DA has constantly opposed the wholesale erection of toll roads as the solution. A dedicated, Road Maintenance Fund - sourced primarily from the fuel levy - would ensure regular supply of funds to address the road maintenance backlog and eliminate the need of excessive tolls to fund road maintenance.

SANRAL and the government cannot expect South Africans to pay yet again for their inefficient and ineffective use of available funding. They must stop misleading the public and be honest about what resources it has available. 

Statement issued by Ian Ollis MP, DA Shadow Minister of Transport, May 19 2013

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