Gauteng Department will fund 50 per cent of the shortfall of the e-tolls in the province.
The province will subsidise the project with an amount of R123 million which occurred as a result of the reduced user charge dispensation.
Finance and e-Government MEC Barbara Creecy announced this e-tolls subsidy on 17 November when she presented the 2015/16 Medium-term Budget policy statement and the Adjustment Budget in the Gauteng Provincial Legislature.
“We are all aware that last year, Premier Makhura took a decision to establish an advisory panel to assess the socio-economic impact of the introduction of the e-tolls on the economy and people and propose a best possible way forward on this matter,” explained MEC Creecy.
She added that the new dispensation was being implemented and the government committed itself during the tabling of the main budget that it would be appropriate to contribute a portion toward the Gauteng Freeway Improvement Project (GFIP) during the adjustment budget.
The MEC further indicated that Gauteng Provincial Government would spend R38 billion over the next three years to build new schools, clinics, regional hospitals, roads and public transport facilities as it accelerates its programme to create jobs, fight poverty and reduce inequality.
Opposition to Urban Tolling Alliance (Outa) insisted that it feared that the decision would have serious consequences to Gauteng taxpayers and this action was a waste of money.
“As valuable as the R123 Million would have been for other critical priorities in the province, it’s is a drop in the bucket for the financial black hole that South African National Road Agency’s (Sanral) e-toll system has become,” said Outa chairperson Wayne Duvenage.
“The monthly payments required by the e-toll scheme to meet its required target is over R260 million. Gauteng’s contribution doesn’t even settle half of one month’s payment requirements of the ill-fated scheme,” explained Duvenage.
According to Outa financing, Sanral’s e-toll project could be in direct contravention with the Sanral Act.
“Outa remains firm that urban freeway upgrades such as the GFIP, should be funded through fuel levy allocations from Treasury,” concluded Duvenage.
Details: Gauteng Department of Finance, 011 227 9241; Outa, 082 884 6652.
Related articles:
E-toll defaulters’ bills exceed R1 billion
E-toll panel to hold consultations
