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Freight & Trading Weekly

Scrapping of e-tolls not a slam-dunk

30 Aug 2019 - by Liesl Venter
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The Road Freight Association (RFA) has advised members to stay abreast of e-toll developments – because all indications are that the controversial system will remain. RFA CEO Gavin Kelly said it remained unlawful not to pay e-tolls. “There are various schools of thought on e-tolls and in particular the Gauteng Freeway Improvement Project (GFIP),” said Kelly. “Some say this is an issue that will go away and that e-tolls will be scrapped. I cannot say I agree. If the system was going to be scrapped that would have happened a long time ago.” Kelly said the bottom line was that freeways in Gauteng had been upgraded and the outstanding bill for the project had to be paid. It is a sentiment that has been echoed by Treasury for some time, with the Minister of Finance, Tito Mboweni, publicly declaring that the system would not be scrapped and that axing e-toll debt would erode the budget. The Gauteng provincial legislature, however, disagrees and believes that the debt and the tolls can be axed. Mboweni and the Gauteng government have been ordered by President Cyril Ramaphosa to work together to come up with a solution around the issue. “They have until the end of August to come up with some kind of decision on the matter,” said Kelly. “It remains uncertain what that decision will be, but we don’t see e-tolls disappearing. The user-pay principle has clearly been identified as government’s overall approach to road funding.” Kelly said two test cases were outstanding. “One was a freight operator that the South African National Roads Agency Limited (Sanral) was planning to take to court about four years ago. At that stage the operator owed some R2.5 million in outstanding tolls. There was also a private individuals case – the so called Outa case – but this has also not come before the bench.” He said there were discounts being offered by Sanral on arrears for tolls. “There is no official strategy out there and we won’t see any policy until the discussions between Gauteng and Treasury have been completed. I get asked often if e-tolls are going to go away. I think it is highly unlikely that will be the case.” 

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FTW 30 August 2019

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