‘It’s back to the drawing board,’ says Ndebele

Transport MEC tackles taxi re-capitalization ‘crisis’

The new government will not force the taxi industry to accept the taxi re-capitalization programme if there are issues that still need to be addressed before the plan is rolled out, KZN Transport MEC, Mr S’bu Ndebele, has assured the taxi industry.

Speaking at a function organised by the Top Six Management taxi association, Mr Ndebele pointed out that there was a need to review the programme and how it affected the ordinary taxi operator on the ground.

Mr Ndebele emphasised the fact that the basic original objectives of the re-capitalization programme could still be achieved through dialogue. He added that if the re-capitalization programme were to be adapted in such a way that it addressed and satisfied the valid concerns of the taxi operators, the programme would still be relevant, credible and essential.

Mr Ndebele explained: ‘It’s the first time in South Africa where a government says: "Not less than R4 billion must come and assist this industry." Four billion because the government’s policy says it is our task to provide safe, efficient and affordable transport. How do you make it safe? How do you make it efficient? How do you make it affordable?’

"Therefore, if the government itself is interested in making it efficient and affordable, it must put money there like it put money into buses. In this province alone, buses get a subsidy of R400 million a year. Yet buses are far less in number than taxis, but they have a subsidy of R400 million.

"I was wondering what the problem was, and then I discovered that ordinary taxi operators have a long record with financial institutions – when they go to financial institutions for loans to buy new vehicles, they are told that the risk factor is higher for acquiring new vehicles.

Mr Ndebele said the risk was high because financial institutions were weary of the fact that by 2006, the old Toyota fleet would be replaced in accordance with the re-capitalization plan.

He further said that if these vehicles were to be scrapped by 2006, therefore it was compulsory for taxi operators to have paid back the loan within that period.

"That puts pressure on the operator because s/he is also expected to make profit whilst paying back the increased monthly instalment for the loan. Aah – why don’t you talk? Your language is that of confrontation. Why can’t we discuss these things openly – we were not even aware of that problem," he added.

Mr Ndebele said: "It must happen within government that if that 2006 deadline was gazetted, it must be changed. Then you’ve got a proper phasing of this process in the same way that you phased out four-seat vehicles, no one passed the law for that. It was an organic, natural and evolutionary process.

The Minister said that he had discussed these issues at national level with acting national transport minister, Mr Jeff Radebe and also Minister Dullar Omar – and both of them had agreed that it was necessary to look at the issue anew.

Mr Ndebele observed: "President Mbeki won’t be happy to put money and tell himself that: ‘Right, here is the money earmarked for the development of the taxi industry…’ The next thing he comes here to find you with your pants down in the streets. The president would say: ‘What kind of gratitude is that?

He concluded: "At the end of the day – as government – even if you can define our interests as political or whatever, as industry you’ve got your interests, as manufacturers they’ve got interests, but our common interest would be to produce a proper vehicle that is safe, affordable and efficient.

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