Transport Portfolio Committee, National Assembly
Summary of
Key Issues and Recommendations
emerging from background research and subsequent hearings on the progressive implementation of the National Land Transport Transitional Act (2000)
October 2002
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Incompatible information systems. |
NDoT to assist with specifications/regulations for information systems. |
NDoT is currently in the process of developing a National Transport Register that will contain all the current information services. All the institutions will have access to this fully compatible system. Due to be ready for implementation by 1 December 2002. |
NDoT to report back January 2003 |
Lack of clarity regarding status of operating license as conferring use or ownership rights, particularly in the event of insolvency or death. |
NDoT to clarify the status of operating licenses |
Currently, an individual has to apply for the normal transfer of an operating license. NDoT has however committed to seeking a legal opinion to establish whether the Departments interpretation of the manner in which the inheritance of operating licenses be handled, is correct and whether any amendments to the Act is required. |
NDoT to report back |
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Advertising of routes which become available by the Board |
NDoT has recommended that this proposal be considered further by MINCOM |
NDoT to report back on MINCOM findings |
Uncertainty regarding procedures and timing of issuing of permits and operating licences, particularly around the issuing of OL’s prior to October 2004 |
NDoT to assist with regulations for route descriptions, processes for the issuing and conversion of permits to operating licences and to set and monitor timeframes. The ambiguity around validity dates for operating licences in Section 31(1) must be clarified. |
NDoT has recommended that the uncertainties regarding the process of issuing of OL’s be discussed in MINCOM and that a workshop be held with senior officials in the Provinces responsible for this function as well as the OLBs and the Registrars. |
NDoT to provide for workshops/forums for operating licence boards to agree on common policies and procedures, and to eliminate misunderstandings. |
Inadequate attention paid in the NLTTA to the transport of farm-workers and other employees by their employers. |
Commuters in rural areas, farm-workers and other employees need to be protected from unsafe transport conditions through the setting of safety standards. |
The transportation of farmworkers and other employees is defined as a staff service*, which requires an operating license, and is therefore subject to certain requirements. However Section 33(2) preserves the exemptions listed in Section 2(1) of the Road Transportation Act, which includes the conveyance by an individual farmer of his farm labourers. This can be replaced with provincial legislation. |
NDoT to report back on MINCOM’s findings. |
Need to clarify role of registrars. |
SANTACO believes that the Registrar should be required to not only control and regulate the industry, but also to be more pro-active in building capacity within the industry, including among the leadership of local associations. |
No specific response –NDoT has arranged a workshop for early October to clarify the role of Registrars in terms of the NLTTA |
Investigate possibility of expanding/redefining registrar’s role. |
Request for clarity regarding duties of Operating Board officials versus those of the Board members |
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The duties of officials/support staff were clarified in NLTT Amendment Act. Clause 78(5)(b). |
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Metered Taxi’s and Tourism services not adequately addressed in the NLTTA |
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NDoT has recommended that the final recommendations on metered taxis be submitted to MINCOM after which amendments to the NLTTA can be considered accordingly |
NDoT to report on MINCOM findings |
Need for clarity/uniform approach towards route descriptions |
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NDoT to provide guidelines regarding route descriptions as part of a broader enforcement policy |
NDoT to report back on progress |
Transport Legislation and Planning
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Complexity of NLTTA |
NLTTA to be made more accessible |
NDoT has developed a series of booklets and pamphlets on the NLTTA. They have also recommended that a 2 or 3 day course be developed, and that training be held as a matter of urgency for the various focus groups such as Registrars and Boards. |
NDoT to report on progress with workshops. |
Lack of sufficient funding to meet statutory planning requirements |
Dedicated funding for statutory planning requirements is required. |
NDoT has transferred funds to Provincial authorities to assist with the implementation of the NLTTA. An additional amount of R19m is available from the NDoT to provide assistance for the development of transport plans at the local level. The NDoT has commenced with the process of developing mechanisms for the distribution of these funds |
NDoT to report on allocation of R19million and progress with the development of funding mechanisms. |
Lack of an appropriate financial framework |
An adequate financial framework must be developed. |
The NDoT and National Treasury have begun a process of developing a comprehensive funding strategy for transport that will be taken to cabinet when completed. Department also participating in other structures such as the Municipal Infrastructure Fund in order to negotiate maximum benefit for the transport sector. |
NDoT to report back to TPC on progress |
Planning frequency is currently too high |
The length of the planning cycle should be increased |
NDoT has agreed to revisit the planning cycle. Recommendations will be taken to COTO/MINCOM |
NDoT to report back on MINCOM findings |
Enforcement not addressed adequately in NLTTA |
Recommended that RTMC and AARTO Acts are amended to provide for Transport Law Enforcement |
NDoT has agreed to consider the proposed amendments to AARTO and RTMC to include transport law enforcement. |
NDoT to report back on their recommendations for amendments. |
Lack of clarity as to designated planning authority (B or C municipality) |
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Regulation of passenger transport has been allocated to district municipalities. Section 20(6) of the NLTTA provides that a District and its Locals must agree as to which of them must prepare transport plans, on condition that efforts are not duplicated and the whole District Area is covered. |
To be communicated to municipalities via workshops and capacity building process. |
Frequency of plans is currently too high |
Frequency of plans needs to be revisited |
NDoT has agreed to revisit the planning cycle. Recommendations will be taken to COTO/MINCOM |
NDoT to report back with MINCOM findings |
Transport Authorities
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Concern over the lack of funding necessary to create the required institutional structures. |
A financial framework for TAs needs to be developed with sufficient sources of funding identified. The national funding requirement needs to be quantified. |
The NDoT is aware that internationally TA’s are frequently co-funded by other spheres of government. They have recommended that a financial framework for TA’s be included in the funding strategy currently being developed by the Department. |
NDoT to report back on findings. |
Concern regarding unfunded mandates - Clause 10(13) provides for an assignment of functions to the TA from Provinces without the need for agreement. |
Ethekwini Metro has recommended changing clause 10(13) to include the words "by agreement". |
NDoT finding that the TA is protected from unfunded mandates by virtue of being an organ of state, established with a founding agreement, and consisting of councilors. No devolution or assignment of functions has occurred yet. Once this occurs, the associated budget will follow. NDoT has however agreed to explore option of co-funding by other spheres, for which there is international precedence. |
Legal opinions seem to differ, but TA’s need to feel secure about this therefore revision should be looked at in order to facilitate the creation of TA’s. |
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The functions listed in sect 10(13)(a)to(e) are substantially covered under the local government transport functions listed in Schedule 4B |
Municipal function of municipal public transport as it appears in Schedule 4B of the Constitution must be defined as a matter of urgency. |
Concern over lack of outside representation within TA. |
Allow TA to include non-councillors. |
In order to be accountable in terms of the PFMA the TA consists only of elected councillors. The Transport Executive (TE) can however include representatives of other organisations. |
None |
Capacity
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
NLTTA requires capacity beyond what is currently available. There are capacity constraints within both Category B and C municipalities. |
Need for a national capacity building programme aimed at enhancing service delivery in the transport sector as a whole, but more particularly within municipalities. This will help municipalities to fulfill their obligations in terms of the Act effectively and efficiently. |
The NDoT has already published awareness booklets. They are in the process of tendering for consultants to assist with the development and provision of a training program for transport planning. |
NDoT to report back with progress on tender |
Capacity linked to former function as Core City |
A national capacity building and support programme to build local capacity should be implemented in more than a number of pilot sites (this should include support for newly established Transport Authorities). |
As above. |
As above |
Lack of uniform or at least compatible practices between provinces. |
NDoT to take a stronger lead in developing model practice notes and pro formae |
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Lack of sufficient capacity to monitor and enforce compliance by operators. |
An appropriate mechanism will have to be found, as enforcement is the competency of either the provinces or the municipalities. |
NDoT is currently appointing a firm to assist with development of an enforcement strategy. National Treasury will be approached for the additional funding. |
NDoT to report with regard to progress with enforcement strategy. |
Integration
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Poor communication channels between the different spheres of government. |
There is a need to create forums for the different spheres to communicate. |
There are adequate forums, namely a technical committee COTO, which reports to MINCOM and the LTCC, one of the coordinating committees of COTO. |
Communication between National and Local, and Provincial and Local needs to be improved. |
Poor integration of the different transport modes resulting in an inefficient use of funds |
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Devolve the appropriate public transport functions to the appropriate level of government to enable integration |
Poor communication between operators and those designing tender documents and planning public transport operations |
Greater recognition needs to be given to the role that operators can play and more consultative processes need to be introduced. |
NDoT: adequate opportunities exist within the public participation process |
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Regulated Taxi industry
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Uncertainty regarding future role of taxi industry |
Calls for definite statements about BEE in general, and in particular the future role of current taxi operators in the transport industry |
NDoT response that all services are to be provided in terms of subsidised or commercial services contracts, or operating licenses for non-contracted services. |
Investigate development of a practical programme of transition for the taxi industry. |
Conversion of permits to Operating Licences – unhappiness over withdrawal of permits |
Compensation will be required in a permit is to be withdrawn. |
In order to manage over capacity and ensure utilisation of the right mode, some permits may have to be withdrawn. The first step will be to try and accommodate the operator somewhere else in the transport sector, second step will be to pay compensation |
The appropriate level of compensation must be investigated. |
Lack of Enforcement |
The rights of legal operators need to be protected in order to secure their support for the implementation of the new transport policy. |
NDoT has agreed that there is a lack of adequate transport law enforcement. Will consider amendments to AARTO and RTMC to include transport law enforcement. |
NDoT to report back on any amendments which may be required |
Taxi operators are not covered by the existing subsidy scheme |
SANTACO has requested that the NDoT bring taxis into the subsidy system. (Even with a scrapping allowance operators will not be able to afford the new vehicles unless there is a change to the operating subsidy system.) |
NDoT emphasised need to develop one land transport system. Subsidies should benefit the commuter and not the operator. (what of current bus subsidies?) |
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Lack of progress with recap process |
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Report currently being considered by the 2 ministers. NDoT busy with development of a roll-out plan in consultation with SANTACO |
NDoT to keep TPC informed of progress |
SANTACO highlighted limited progress by TETA with respect to capacity building of taxi operators |
Urgent need for a wide-ranging capacity building programme. |
TETA has embarked on a 3 tier program to train taxi operators to better handle the public. The levels of training are at managerial, associational and driver levels. Programmes already in place in Pretoria. NDoT has allocated money in its budget specifially for this reason. |
NDoT to inform TPC of the outcome of this meeting |
Restructuring of the Bus Industry
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Stall in tendered contract process |
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Towards the end of 01/02 a shortfall in the bus subsidy budget was identified, and tenders in progress were halted. There is a similar problem in the current financial year. A Technical Committee has been established to investigate issues pertaining to this shortfall on the bus subsidy allocation. Date for reporting given as October 2002. |
NDoT to report on progress early November 2002. |
Lack of capacity to deal with monitoring of contracts, seen as an essential component of regulated competition. |
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While comprehensive monitoring for tendered and negotiated contracts is already in place, interim contracts are currently not monitored according to NDoT, representing 55% of total subsidy budget. |
New mechanisms for contract monitoring need to be explored. |
Heads of Agreement disputes |
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Meetings arranged for 19 and 20 September 2002 to address the way forward. |
NDoT to report back on progress by November 2002 |
Lack of funding to cover subsidized bus contracts |
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Currently being addressed by interdepartmental working group. |
NDoT to report back on progress by November 2002 |
SMME’s find it difficult to access capital, which is a major stumbling block to new "stand alone" businesses. |
Other options to ensure sustainable BEE in the industry need to be explored |
NDoT will investigate how to promote the participation of HDI in the public transport sector |
NDoT to report back on progress |
Integrated Transport System
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Devolution of rail is required in order to allow for modal integration |
Legislation to bring commuter rail under the Act and under the TAs should be introduced |
NDoT has recently developed a national Rail Transport Policy and Rail Strategic Plan – will be tabled to Portfolio Committee and Select Committee in due course. |
NDoT to present plan to TPC |
Improved Service for the commuter
Issue |
Specific Recommendation |
NDoT response |
Further Action requested |
Lack of Commuter representative forums |
Local communities need to be involved from the planning stage. |
NLTTA is prescriptive on public participation |
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Lack of funding for public transport |
Improved funding for public transport to be sourced from the national fiscus |
NDoT agrees, various processes are currently on the go to address this. |
NDoT to report on progress |
Funding issues related to the provision of transportation services for the disabled needs to be addressed. |
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