Budgetary Review and Recommendation Report of the Portfolio Committee on Transport on the performance of the Department of Transport for the 2010/11 financial year, Dated 20 October 2011
The Portfolio Committee on Transport, having assessed the service delivery performance of the Department of Transport, reports as follows:
Section 77(3) of the Constitution stipulates that an Act of Parliament must provide for a procedure to amend money bills before Parliament. This constitutional provision gave birth to the Money Bills Amendment Procedure and Related Matters Act (No. 9 of 2009). The Act gives Parliament powers to amend money bills and other legislative proposals submitted by the executive whenever the executive deems it is necessary to do so. The Act therefore makes it obligatory for Parliament to assess the Department’s budgetary needs and shortfalls against the Department’s operational efficiency and performance.
Section 5 of the Act compels the National Assembly, through its committees, to submit budgetary review and recommendation reports (BRRRs) annually on the financial performance of departments accountable to them. The report must be informed by a committee’s interrogation of, amongst others, the medium-term estimates of national expenditure of each national department, strategic priorities and measurable objectives, expenditure reports published by National Treasury, annual reports and financial statements, as well as observations made during oversight visits.
The Committee appreciates that the manner in which the Department structure itself, relates to the different modes of transport.
2. MANDATE OF THE COMMITTEE
The mandate of the Committee is to consider legislation referred to it and to consider all matters referred to it in terms of legislation, the Rules of Parliament or resolutions of the House. The role of the Committee is to represent the people and to ensure that government fulfills its service delivery mandate.
3. MEASURABLE OBJECTIVES AND OUTCOMES OF THE DEPARTMENT OF TRANSPORT
3.1 Measurable objectives
3.1.1 Programme 1: Administration
The purpose of the Administration programme is to coordinate and render an effective, efficient, strategic support and administrative service to the Minister, Deputy Minister, Director-General and Department.
3.1.2 Programme 2: Transport Policy and Economic Regulation
The purpose of this programme is to effectively manage a national innovative research and development programme, develop and analyse strategic policies, develop appropriate legislation and to provide economic advice and analysis for all modes of transport.
3.1.3 Programme 3: Transport regulation and Accident and Incident Investigation
The purpose of this programme is to create an enabling regulatory environment in the areas of safety, security and environmental compliance and to manage accident and incident investigations for all modes of transport.
3.1.4 Programme 4: Integrated Planning and Inter-sphere Coordination
The purpose of this programme is to manage and facilitate integrated planning and intersphere coordination for infrastructure and operations.
3.1.5 Programme 5: Transport Logistics and Corridor Development
The purpose of this programme is to manage the implementation of the transport logistics strategy and the development of freight movement corridors.
3.1.6 Programme 6: Public Transport
The purpose of this programme is to develop practices and norms that will increase access to appropriate and quality public transport.
3.1.7 Programme 7: Public Entity Oversight and Border Operations and Control
The purpose of this programme is to develop appropriate mandates and monitoring mechanisms to oversee public entities and border control operations and control.
3.2.1 Outcome 1: An effective and integrated infrastructure network that serves as a catalyst for social and economic development
· Key transport facilities developed;
· Maintenance and preservation of critical roads improved;
· Priority passenger rail corridors developed and upgraded;
· Efficiencies and reliability in rail freight sector enhanced.
3.2.2 Outcome 2: A transport sector that is safe and secure
· Safe rail infrastructure and equipment ensured;
· Accident and incident rates on roads reduced;
· Road Accident Fund transformed into the Comprehensive Social Security System;
· Maritime transport safety and security improved;
· Air transport safety and security improved.
3.2.3 Outcome 3: Improved rural access, infrastructure and mobility
· Non-motorised transport (NMT) facilities, infrastructure and services improved;
· Integrated Rural Public Transport Networks rolled out in rural districts;
· 15 000 bicycles procured and distributed.
3.2.4 Outcome 4: Improved public transport system
· Integrated Rural Public Transport Networks rolled out;
· Public transport industry formalised;
· Public transport integration and intermodal planning committees in all provinces and metros and an active Public Transport Integration Committee Forum established at national level;
· 2010 transport arrangements coordinated.
3.2.5 Outcome 5: Increased contribution to job creation
· Job creation targets for transport sector set and achieved;
· National procurement promoted.
3.2.6 Outcome 6: Increased contribution of transport to environmental protection
· Impact of transport on climate change reduced.
4. ANALYSIS OF THE 2010/11 ANNUAL REPORT OF THE DEPARTMENT OF TRANSPORT
The analysis seeks to establish whether the Department has achieved its aims and objectives, as set out in the 2010/11 Strategic Plan, as well as whether it continues to fulfill its constitutional mandate. The analysis will highlight the key achievements made, as well as challenges encountered during the 2010/11 financial year, as reported in the Department’s Annual Report.
The review of the
Annual Report is in accordance with section 55(2) of the Constitution of the
4.2 The Legislative Mandate of the Department
The Department is entrusted with maximising “the contribution of transport to the economic and social development goals of [the] country by providing fully integrated transport operations and infrastructure”. The main roles of the Department of Transport and its public entities in relation to the transport sector are:
· Policy and strategy formulation in all functional areas;
· Substantive regulation in functional areas where the Department has legislative competence;
· Implementation in functional areas where the Department has exclusive legislative competence;
· Capacity-building in all functional areas;
· Monitoring, evaluation and oversight in all functional areas; and
· Stimulating investment and development across all modes.
The Department of Transport strives to “lead the development of efficient integrated transport systems by creating a framework of sustainable policies and regulations and implementable models to support government strategies for economic, social and international development”.
4.4 Government Strategy and Objectives
The transport sector has received significant attention from Government in the recent past and is being recognised as a driver of overall economic growth. In the 2010 state-of-the-nation address, President Jacob Zuma highlighted the following as key priority areas for the transport sector:
· Spending R846 billion on public infrastructure;
· Maintaining and expanding the road network;
· Ensuring that the rail network is reliable, competitive and better integrated with sea ports;
· Implementing the Comprehensive Rural Development Programme;
· Investing in youth to ensure a skilled and capable workforce to support growth and job creation;
· Eradicating corruption and fraud in the application for drivers’ licences;
· Ensuring that Ministers sign a detailed delivery agreement with the President.
4.5 Department’s Key Strategic Objectives
The Department’s key strategic objectives are:
· Providing an effective and integrated infrastructure network that serves as a catalyst for social and economic development;
· Providing a transport sector that is safe and secure;
· Improving rural access, infrastructure and mobility;
· Improving public transport systems;
· Increasing contribution to job creation;
· Increasing contribution of transport to environmental protection.
5. PERFORMANCE EVALUATION
During the reporting period, the Department made a steady and significant progress towards achieving its aims and objectives. In an endeavor to expedite economic growth with a view to creating jobs for the greatest number possible, the Department used the 2010 Fédération Internationale de Football Association (FIFA) World Cup as a launch pad or a springboard. Though not meant for the World Cup, the R25 billion Gautrain Rapid Rail Link created over 90 000 direct and indirect jobs while road construction for the same period created over 5 000 jobs.
At the same time, the
Perhaps more importantly, the Department led consultations with the taxi industry that was affected by the Rea Vaya Bus Rapid Transit (BRT) system and evolved an ownership scheme by the operators themselves. The BRT system is now majority-owned by the taxi industry and has become a model for the roll-out of these systems in other municipalities.
While the Department met most of the targets it had set itself during the period under review, it encountered challenges in certain areas as reported below.
5.2.1 Challenges experienced with Outcomes:
126.96.36.199 Outcome 1: Providing an effective and integrated infrastructure network that serves as a catalyst for social and economic development
· Production of a Research Report Outlining the Cost of Doing Business in the Transport Sector
A task team for the cost of Logistics Study Framework was established and the macro-economic and industry analysis reports were finalised. However, the research report outlining the cost of doing business in the transport sector could not be produced by 31 March 2011. At the time of tabling its Annual Report, the Department stated that the analysis was taking longer than anticipated due to consultation with stakeholders.
· Development of a Proposal for a
The pilot mobile weighbridge unit at the Durban-Gauteng corridor was not rolled-out. This activity was reportedly transferred to the South African National Roads Agency Limited (SANRAL).
188.8.131.52 Outcome 2: Providing a transport sector that is safe and secure
· Transport Sector Disaster Management Plan
The Plan could not be developed owing to financial constraints.
· Publication and Implementation of All Applicable Regulations for
At the time of tabling its Annual Report, the Department stated that it had published the Draft Regulations for the National Road Traffic Act but it did not state whether the Regulations were being implemented.
184.108.40.206 Outcome 3: Improving rural access, infrastructure and mobility
· Finalisation of Non-Motorised Transport (NMT) Policy and Draft Legislation
In its 2010 Strategic Plan, the Department had undertaken to finalise the NMT Policy and draft legislation during the period under review. However, at the time of tabling its Annual Report, it reported that the Policy was at a draft stage pending the approval for the migration of the Policy from the Department of Basic Education to the Department of Transport and also subject to the support of the Education Minister and Members of the Executive Council (MINMEC).
· Roll-Out of NMT Facilities and Infrastructure in Six Districts
No progress was made in this regard. The budget allocated for this purpose was reportedly shifted to the Rural Grant because the priority changed to Road Asset Management Systems (RAMS) development.
220.127.116.11 Outcome 4: Improving public transport systems
· Creation of the Project Management Unit (PMU) to Facilitate the Integrated Public Transport Networks (IPTNs) Implementation
This did not take place due to delays in the procurement process.
· Coordination of
At the time of tabling the Annual Report, the Department reported that
all available provincial data was captured on its database but it was still
awaiting a response from the
· Approval and Implementation of the National Scholar Transport Policy
During the reporting period, consultations took place with the
parliamentary Portfolio Committee on Transport, as well as the
· Formulation of Scholar Transport Migration Policy
No progress was made in this regard as the Department was still in the process of engaging with the Department of Basic Education to clarify lines of responsibilities.
18.104.22.168 Outcome 5: Increasing contribution to job creation
· Number of Jobs and Work Opportunities Created
The Department had undertaken to agree with the Airports Company South
Africa (ACSA), South African National Roads Agency Limited (SANRAL), Passenger
Rail Agency of
· Development and Approval of the Maritime Policy and Strategy
Due to capacity constraints, the Department only managed to develop the first draft of the Maritime Policy and Maritime Strategy.
22.214.171.124 Outcome 6: Increasing the contribution of transport to environmental protection
· Compiling Green House Gas (GHG) Inventory
The literature review for emissions was completed and a Business Plan was developed. However, due to the unavailability of funds, the GHG Inventory could not be complied.
· Developing Ballast Water Act and Regulations
The process of appointing a specialist service provider was halted owing to limited funding.
· Developing a Strategy for Noise Reduction in all Transport Systems
The Department did not have sufficient funds for the development of a Strategy for noise reduction in all modes of transport.
5.2.2 Challenges experienced with the following programmes:
126.96.36.199 Programme 2: Transport Policy and Economic Regulation
The Transport Policy and Economic Regulation Programme manages a national innovative research and development programme. It also develops and analyses strategic policies, In addition, it develops appropriate legislation and provides economic advice, as well as analysis, for all modes of transport.
· Innovation Strategy
The target could not be achieved due to the unavailability of funds and lack of capacity. It was reported that funds could not be shifted within the programme and that attempts to appoint a consultant were unsuccessful.
· Knowledge Management
The target could not be achieved owing to the shifting of funds to other programmes earmarked by the Department for urgent delivery.
· Research Studies
The development of a rural accessibility index for 12 districts as a management and monitoring tool was not achieved. The funds intended for this project were reprioritised.
· Broad-Based Black Economic Empowerment (B-BBEE) Road Shows
Only six provincial Broad-Based Black Economic Empowerment road shows were held instead of nine due to insufficient budget allocation.
188.8.131.52 Programme 4: Integrated Planning and Inter-Sphere Coordination
The Integrated and Inter-Sphere Coordination Programme manages and facilitates planning and inter-sphere coordination for infrastructure and operations.
· Roll-Out of the Shova Kalula Bicycle Programme
During the reporting period, the Department procured 15 000 bicycles but only 1 340 of these were distributed.
· Promotion of Animal-Drawn Transportation
The target of distributing 20 carts was not achieved. This was attributed to financial constraints at a national level. However, 30 carts were distributed at a provincial government level.
184.108.40.206 Programme 6: Public Transport
The Public Transport Programme develops practices and norms that will increase access to appropriate and quality public transport to meet the socio-economic needs of both rural and urban passengers.
· Rolling-Out of the Integrated Public Transport Networks (IPTNs)
No progress was registered in this regard at Nelson Mandela Bay (NMB). However, the Department reportedly wrote to the NMB outlining a specific methodology that it needed to undertake in order to engage in meaningful negotiations with affected operations.
220.127.116.11 Financial Management
For the fifth consecutive year, the Department received an unqualified audit opinion. Matters of emphasis were, however, identified by the Auditor-General pertaining to the following:
· The accounting officer did not take effective and appropriate steps to prevent irregular, wasteful and fruitless expenditure, as per the requirements of section 38(1)(c)(ii) of the Public Finance Management Act (PFMA) (No. 1 of 1999).
· The irregular expenditure incurred was in contravention of Treasury Regulations 16A6.1 and National Treasury Practice Note No. 8 of 2007/08 issued in terms of section 76(4) of the PFMA.
· Fruitless and wasteful expenditure was incurred as a result of accommodation and flight tickets not being cancelled timeously.
· Leadership did not exercise its oversight accountability and related internal controls. This resulted in irregular, wasteful and fruitless expenditure being incurred.
6. HUMAN RESOURCES
By the end of March 2011, the Department had 677 posts (677: 2010) on its establishment and 524 (529: 2010) were filled. The vacancy rate stood at 22.60 (21.86: 2010) per cent. The highest vacancy rate was in Programme 4 (Integrated Planning and Inter-Sphere Coordination) which stood at 27.06 per cent. This was followed by Programme 2 (Transport Policy and Economic Regulation) which stood at 25.37 per cent. The Public Entity Oversight and Border Operations and Control Programme had the lowest vacancy rate at 16.67 per cent. The main reason for staff leaving the Department was said to be as a result of transfers to other public service departments. The Department employed eight persons with disabilities, translating into 1.52 per cent. Of these, 4 were African (two females and 2 males) and 4 White (all females).
7. TECHNICAL ASPECTS OF THE REPORT
The Report is credible and presented in a clear and logical fashion. However, for all the outcomes, the planned and reported targets were not time-bound in specifying the time period or deadline for delivery. The absence of time-frames makes it almost impossible to establish whether the Department achieves its aims and objectives and to hold it to account. There are also instances in the Report where the Department has failed to meet the performance targets. The reason that is repeatedly advanced by the Department for this aberration is that the funds were not available for it to execute some projects or that there has been reprioritisation. This is a cause for concern because it suggests poor planning on the part of the Department during the formulation of its Strategic Plan. In an endeavor to avoid this anomaly in future, the Department should ensure that the performance targets that it sets itself are realistic and achievable. An additional concern is the report on a lack of capacity in a number of programmes. The Department should evaluate its organisational structure to ensure that it has the appropriately skilled personnel to fulfill its mandate.
8. ANALYSIS OF EXPENDITURE REPORTS
In 2010/11, the Department was allocated R25.2 billion which included the adjustment of R211.7 million made by the Department during the period under review. Of this amount, the Department spent R25.1 billion at the end of March 2011. This amounted to an under-expenditure of R148.2 million mainly due to notable under-expenditures in Programme 2 and Programme 3 which amounted to a total under-expenditure of more than 15% per programme.
8.1 Programme 1: Administration
The Administration Programme was allocated a total budget of R213.9 million before the adjustment period. During the adjustment period, this amount increased to R233 million. At the end of the reporting period, the Administration Programme had over-spent on its budget by 4 per cent. This was attributed to higher than anticipated travelling costs, legal costs incurred by the Department, media campaigns and information technology (IT) infrastructure, including enterprise content management.
8.2 Programme 2: Transport Policy and Economic Regulation
The Transport and Economic Regulation Programme received R49 million which subsequently decreased to R45 million during the adjustment period. Notwithstanding the decrease, by the end of the financial year, only 84.7 per cent of the budget allocation had been spent. The 15.4 per cent under-expenditure was due to late appointments of service providers by the Department.
8.3 Programme 3: Transport Regulation and Accident and Incident Investigation
For the 2010/11 financial year, the budget for this programme before adjustments totalled R196.2 million. After adjustments, it increased to R391 million. Despite the increase of R194.8 million, the programme recorded an over-expenditure of 101.1 per cent owing to the payment made to Tasima, the supplier that maintains the electronic National Transport Information System (eNatis).
8.4 Programme 4: Integrated Planning and Inter-Sphere Coordination
Programme 4 was allocated a total budget of R7 billion in the 2010/11 financial year before the adjustment period. During the adjustment period, an amount of R29 million was shifted from this programme to other programmes. At the end of the reporting period, the Integrated and Inter-Sphere Coordination Programme had spent 99.6 per cent of its budget.
8.5 Programme 5: Transport Logistics and Corridor Development
During the reporting period, the Transport Logistics and Corridor Development Programme was allocated R30.1 million. However, after the adjustment period, the allocation for this Programme decreased to R28 million. Of this amount, the programme spent 74.6 per cent at the end of the financial year. The under-expenditure was mainly due to delays in the implementation of the Freight Master Plan, Border Optimisation Strategy and the implementation of the Freight Logistics Strategy.
8.6 Programme 6: Public Transport
During the period under review, the budget for the Public Transport Programme before and after adjustments stood at R17.4 billion. At the end of the financial year, it had spent 99.3 per cent of its budget. The 0.7 per cent under-expenditure was as a result of less than the anticipated taxi recapitalisation for the financial year.
8.7 Programme 7: Public Entity Oversight and Border Operations and Control
In 2010/11, the Public Entity Oversight and Border Operations and Control Programme received an appropriation of R149 million which remained unchanged after the adjustment period. Of this amount, the Programme spent 97.3 per cent by the end of the reporting period. This reduced outlay on the anticipated expenditure on goods and services mainly related to the delays in the implementation of the Electronic Performance Management System (EPFMS).
9. CONSIDERATION OF OTHER SOURCES OF INFORMATION
The Committee considered the following reports as part of the Budgetary Review and Recommendations process:
9.1 State of the Nation Address 2011: Report by the Parliamentary Research Unit dated 28 February 2011.
9.2 Report of the Portfolio Committee on Transport on the Budget and the Strategic Plan of the Department of Transport and its entities, dated 24 May 2011.
report of the Portfolio Committee on Transport on its oversight visit to the
9.4 Draft report of the Portfolio Committee on Transport on its oversight visit to the South African Maritime Safety Authority, 2-5 August 2011.
from Auditor-General of
9.6 Mandates of the Department and its entities.
9.7 Analysis of 2010/11 Annual Reports of the Department of Transport and the following entities: Airports Company South Africa (ACSA), Cross Border Transport Agency (C-BRTA), South African Maritime Safety Authority (SAMSA), Road Traffic Management Corporation (RTMC), Passenger Rail Agency of South Africa (PRASA) and South African National Roads Agency Limited (SANRAL).
9.8 Strategic document, SAMSA, 20 October 2011.
10. COMMITTEE OBSERVATIONS DURING 2010/11 ANNUAL REPORT BRIEFINGS
The Committee made the following observations during the Annual Report briefings by the Department and its entities:
10.1 Report of Auditor General of
The Committee noted the report from the Auditor-General on the Audit Outcomes for 2010/11 and the performance of the Department and its entities. The lack of findings in the performance of the Department was acknowledged, but the Committee noted the cases of non-compliance by some of the entities raised in the 2010/11 Audit Outcomes of the Auditor-General.
The Committee expressed concern at the instances of non-compliance in relation to supply chain management in terms of government priorities of crime reduction in terms of service delivery. Adequate measures should be applied to address challenges around procurement processes for the Department and entities.
The Committee noted that the key areas raised as a concern by the Auditor General reflected on the responsibilities and performance of the Boards of the entities. The Committee is of a view that Boards are not as robust in executing their roles on governance and holding officials accountable. The Committee therefore requests that Boards increase their oversight of the entities for which they are responsible. Chairpersons of Boards are requested to come up with measures to address non-compliance.
Ports Regulator of
The Committee noted the strategic approach by SAMSA which focuses on the
repositioning of the maritime industry. The strategic goals are: the
The Committee also noted that
Incorporating: PRASA, RSR, Autopax, Intersite Asset Investment
The Committee noted the congestion of trucks entering the
There should be a meeting between the accounting officers and political heads of the Departments of Transport and of Public Enterprises to attend to the issue of Transnet that has a tendency to transfer its primary mandate (transportation of freight through rail) to the Department of Transport, through shipment by road, as this poses problems for the Department of Transport as it has to maintain the deteriorating road infrastructure.
Areas of under-expenditure were noted with concern, especially in the area of rural transport. The Committee is of the view that the resuscitation of railway lines in rural areas should be explored in line with the rural and agricultural government agenda.
Incorporating: SACAA, ACSA, ATNS
The Committee noted the balance sheet loss of Airports Company South Africa (ACSA) due to investments made for the Soccer World Cup 2010. Legislation to address aviation tariffs should be prioritised, including the need to appoint a permanent economic regulator.
The Committee noted that the incidence of baggage pilfering remains high at South African airports despite money spent on security. The Committee recommends that ACSA relook the effectiveness of its strategies if incidents of pilfering remain high.
The Committee noted that a stable and predictable economic regulatory framework was necessary for the aviation industry. The Department was urged to look into the establishment of an economic regulator within the transport industry, including aviation.
Incorporating: SANRAL, RAF, C-BRTA, RTMC, RTIA
The Committee noted the under-spending in the taxi recapitalisation programme, especially the decrease in implementation in the provinces and noted the Department’s response in this regard. The Committee wanted clarity from the Department on whether there were mechanisms in place to counteract possible abuses of the programme.
During its oversight visit to the
The Committee noted that more than 70% of the country’s road network has reached the end of its life span and that the South African National Roads Agency Limited (SANRAL) is increasingly asked by provinces to assist with the maintenance of provincial roads, which leaves the entity with funding difficulties. The Department of Transport should consider exploring a funding model for road maintenance.
Strategies to reduce usage of roads should be pursued. The use of rail for the transportation of goods and passengers should be prioritised.
The Committee further noted with concern the economic and social impact of a user-pay system on South African road users due to the toll roads.
The Cross Border Road Transport Agency (C-BRTA) requested the Committee’s assistance to resolve challenges with regard to Lesotho–South Africa cross-border transport as it is currently hampering the movement of passengers between the countries.
There have not been sufficient efforts to alleviate cross-border transport impediments with specific reference to border post delays that negatively affect the cost of trade and regional integration.
The Committee recommends that the Minister of Transport ensure that Board members are timeously appointed to the Boards of the entities and that the Committee is advised in accordance with the relevant Act, where applicable.
Institutional capacity and human resources in the Department should be strengthened. The Committee noted the number of vacancies in the Department and urged the Department to establish time frames for the filling of these vacancies as it impacted on service delivery and the performance of the Department.
There should be a relook at remuneration packages at entities in relation to its capacity, staff and turnover.
The Committee noted that the four modes of transport, namely rail, road, maritime and aviation transport, were not yet integrated and that there was a call to integrate the modes. The modes of transport were not developed at the same pace and there was an uneven level of investment by Government in theses modes. In response, the Committee made the following recommendations:
the dawn of democracy,
Committee noted the strategic approach by SAMSA which focuses on the
repositioning of the maritime industry. The strategic goals are: the
Committee also noted that
11.2.1 The Committee’s finding was that the Road Traffic Management Corporation (RTMC) had developed a strategic plan which seeks to intervene in its challenges. The RTMC would require funding to execute its turnaround strategy. The Committee also found that the RTMC operated without a Board and that there was a case pending against the Chief Executive Officer. The Committee finally noted that there was a need for an institutional arrangement that would create a conducive environment for the RTMC to operate in.
11.2.2 The Committee therefore recommends that the Shareholders Committee provide clear directives for establishing the Board in line with the RTMC Act. The Department is also requested to speed up the process to amend the National Land Transport Act.
11.2.3 The Cross Border Road Transport Agency’s mission is to spearhead social and economic development within the SADC region through facilitating unimpeded cross-border road transport movements. This mission has, however, not been realised in the previous financial years due to funding and institutional challenges. One of the key strategies of the Agency is to position itself as a facilitator to alleviate cross-border road movement impediments. The strategy will include the planning of a collaborative border management system. The Agency’s expenditure framework increased from R55 million to R182 million to align its resources with the execution of the newly developed strategy.
11.2.4 To further ensure that the Agency remains a going concern and is able to cover the increased expenditure framework, permit tariffs were increased significantly on 1 April 2011. To implement the principles of a user-pay system and not to overburden the cost of cross-border trade, it is imperative that certain functions of the Agency are covered by national funding.
11.2.5 The Committee supports the C-BRTA’s strategic plan and therefore recommends that the Minister and government support investments accordingly.
11.3.2 The Committee therefore recommends that legislation be put in place to move the transportation of goods from road to rail. The Committee further recommends that the focus should be on the development of rail as a mode of transport. The Committee recommends that the Department consider putting investment in place for the upgrading and rehabilitation of dormant railway branch lines. A budget was needed to revitalise the railway and upgrade the current infrastructure from narrow to standard gauge.
is finalising plans to invest approximately R123 billion towards the
replacement of the rolling stock fleet for Metrorail and Mainline Passenger
Services. The investment will be for new
rolling stock and the modernisation and upgrade of associated infrastructure
such as depots, signaling and electrical works amongst others. The investment
will create an estimated 65 000 jobs over an 18-year period, starting with 5 000
jobs at the commencement of the fleet renewal programme and general
infrastructure upgrades. PRASA has developed a plan for the manufacturing of
11.3.4 The Committee recommends that this approach be supported by the Departments of Higher Education and Training as well as Science and Technology so that scarce and critical skills are developed in line with the development of the railway industry. The Committee further recommends that the development of the railway industry be aligned to job creation and poverty reduction with specific focus on the location of manufacturing plants in under-developed areas.
11.4 Road infrastructure
11.4.1 The Committee noted that there were uneven levels of development in road infrastructure development. The Committee found that national and some provincial roads were generally in a good condition, but that municipal and rural roads were lacking and, in many cases, sub-standard. The programmes and the budgets of the Department did not relate to this state of affairs.
11.4.2 The Committee recommends that a workshop be held with provincial portfolio committees on transport, relevant officials from the national and provincial departments of transport, as well as the South African Local Government Association (SALGA) to empower all portfolio committees to have a uniform approach with regard to oversight. In this same forum, the issue of a funding formula that relates to the backlog should be discussed by Treasury for implementation by the relevant departments.
11.4.3 During the Committee’s strategic planning workshop with the Department and its entities, the South African National Roads Agency Limited (SANRAL) presented a funding model and acknowledged that the roads are beyond their lifespan, but no alternative solution was given. The Committee recommends that SANRAL and the Department provide an alternative solution to this issue before the beginning of the new financial year.
11.4.4 The Committee recommends that the Department consider developing an effective and holistic strategy to reduce fatal road accidents, thereby contributing to the reduction of death-related expenditure of the Road Accident Fund and instead use such financial resources for development. The Administrative Adjudication of Road Traffic Offences (AARTO) and the Road Traffic Infringement Agency (RTIA) should be part of the strategy.
11.4.5 The Committee should also undertake study tours to countries that had effectively reduced road accidents.
11.5 Scholar Transport
11.5.1 The Committee observed that it has taken the Department more than four years to draft the scholar transport policy. In drafting the policy, the Department did not outline the challenges experienced in scholar transport and the changes that are needed to be effected. The Committee noted that the Department had not consulted other stakeholders.
11.5.2 The Committee recommends that the scholar transport policy address the following issues: location of the function, safety of scholars, condition and features of vehicles, competency and life skills for drivers, the accessibility and conditions of access roads to schools and the role played by the Department of Basic Education.
11.6 Shova Kalula
11.6.1 The Committee noted that the Department had to be more strategic in the distribution of bicycles and not only respond on request. In order to successfully implement the project, the Department should consider compiling a database of schools located far from residential areas.
11.6.2 The Committee recommends that the Department consider the establishment of bicycle manufacturing plants in under-developed areas so that the project relates to poverty reduction and the 2020 job creation target.
11.7 Upgrading of Rural Road Network
11.7.1 The Committee recommends the upgrading of the rural road network from gravel to low-volume ceiling so that the roads can be utilised in all weather conditions. The formula for allocating funding should not only focus on population, but also on the existing backlog.
11.7.2 The Committee recommends that the Minister consider establishing a fund for the upgrading of the rural road network in the same way that the Road Maintenance Fund was established. The Committee also recommends that the Department of Transport and the Committee lead a process for developing a model for the upgrading of rural roads in the manner of S’hamba Sonke.
11.8.1 The Committee notes that the Department could not develop the Transport Sector Disaster Management Plan due to budgetary constraints. The Committee recommends that National Treasury consider providing the required budget to enable the Department to implement the plan.
11.8.2 The Committee finally notes that in terms of outcome 5 of the Department’s programme, no specific information was provided for job creation targets. The Committee recommends that the Department set specific targets for 2012/13 and align job creation with skills development with the aim of reducing dependency of poor families on government grants, and facilitate the creation of self-reliant and self-sufficient families.
While the Department arguably continues to fulfill its constitutional mandate, there is still room for improvement pertaining to, in particular, the attainment of the targets it sets itself. This largely necessitates that the targets set should be in tandem with the financial resources that the Department has at its disposal.
Report to be considered.
Ms NR Bhengu, MP Date:
Chairperson: PC on Transport