‘Toll system makes no economic sense’ – economist

If the South African government wants to implement a “user-pay” principle to address the R149-billion-road maintenance shortfall, it should consider implementing this policy across its departments. Economist Mike Schussler last week questioned the government’s intention to implement this principle that will see more than 40 tolls erected in Gauteng alone in the coming months as part of the Gauteng Freeway Improvement Project. “Why just for roads?” asked Schussler. “If it is government policy to implement a “userpay” principle it is needed for schools, hospitals and everything else.” Transport Minister Sibusiso Ndebele recently indicated that the “user-pay” principle was government policy, but was used selectively and only where feasible. According to the Transport Department, South Africans can expect more tolls as this is part of the South African National Roads Agency’s long-term planning strategy for the national road network. According to the government, tolls – and the “user-pay” principle – will play a major role in addressing the multibillion rand maintenance backlog. But, said Schussler, the entire toll system does not make economic sense. “If you are paying R20 billion for a toll road in Gauteng and it will take eight years to pay back the loan but will cost you another R14 billion to collect the tolls in the next few years, that is just plain inefficiency. It does not make economic sense.” He said it would have been cheaper to the consumer and more efficient to just raise the tax rate on petrol and diesel. In a statement last week the Democratic Alliance said it believed the entire decisionmaking process with regard to the implementation of a toll roads system was deeply flawed. “Toll roads will have serious implications for all communities in their proximity as they will drive up the cost of transportation and therefore constrain economic growth. These toll costs will act as a regressive tax,” said the DA’s Manny de Freitas.