ANNUAL REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT

JUNE – DECEMBER 2004

NAME OF COMMITTEE: PORTFOLIO COMMITTEE ON TRANSPORT

Chairperson: Mr JP Cronin

MISSION OF THE COMMITTEE:

The mission of the Committee is firstly to contribute to a significant improvement in the accessibility, affordability and safety of public transport in our country. Secondly it is to contribute to the improvement of capacity, effectiveness and efficiency in our freight logistics systems (air, maritime, ports, road and rail) in their national, regional and international contexts. Related to these concerns are transport safety and effective enforcement, and the role of transport in contributing to our country’s overall growth and development objectives, particularly in regard to job creation and employment intensity.

THE VISION OF THE COMMITTEE IS:

To promote an active multiparty structure that will contribute to the above mission by engaging effectively with

The development of relevant and enabling transport legislation and regulations;

The oversight of the Department of Transport and the various institutions and agencies that fall under the National Transport budget, and an active engagement with all key stake-holders in the sector;

The development and ongoing evaluation of transport policy.

LIST OF ENTITIES REPORTING TO THE COMMITTEE:

South Africa National Roads Agency Ltd (SANRAL)

Road Accident Fund (RAF)

Cross-Border Road Transport Agency (CBRTA)

SA Rail Commuter Corporation (SARCC)

Air Transport Navigation Services (ATNS)

SA Maritime Safety Authority (SAMSA)

Civil Aviation Authority (CAA)

Road Traffic Management Corporation (RTMC)

National Rail Safety Regulator (NRSR)

Airports Company of South Africa (ACSA)

 

CHAIRPERSON’S OVERVIEW:

In the first half-year of its existence the Committee played an active role in engaging with the new Minister of Transport and his relatively new team in redefining strategic transport objectives and in reviewing areas of persisting challenge.

The Committee believes that there is now a more coherent strategic approach to the transformation of the freight logistics sector in our country, including the need for significant reform of Transnet, and the need for significant infrastructural investment. The Committee’s passing of the National Ports Bill is an integral part of this overall effort. We will continue to engage actively with the Department and other relevant role-players in seeking to improve our national freight logistics system.

The area of public transport remains a serious challenge. The Committee played an active role in highlighting the shortcomings of the original version of the proposed taxi recapitalisation programme. The original programme was well intentioned but unaffordable. The principle of a major subsidisation of this key sector is correct, the modalities remain however to be worked out much more clearly. Existing bus and commuter rail subsidies are not as effective as they should be. In its various engagements with role-players, the Committee has come to the conclusion that in the coming years significant attention needs to be paid to the role and capacity of local government in planning, subsidising and regulating public transport. A major review of the National Land Transport Transitional Act needs to be undertaken, taking into consideration the outcome of the National Travel Survey. The committee also believe that greater focus needs to be put on the implementation of rural transport to find a strategy that promotes motorised forms of Transport.

The Committee did some oversight work on road safety issues. We believe that government has made important progress, but major challenges persist, in particular the committee is concerned that statutory Road Traffic Management reassessment is required to ensure that all spheres of government are more effectively coordinating their efforts and resources on prompted and thoroughly is corporation is not functioning effectively.

The Road Accident Fund remains an area of major concern. There are immediate challenges to ensure more effective governance and management. There are also major long-term challenges to ensure a significant re-orientation of the Fund, possibly in line with the RAF Commission recommendations. The Department introduced a Road Accident Fund Amendment Bill to the Committee, but then withdrew it for further consultation and drafting. The Committee anticipates receiving a re-worked version in the first quarter of 2005. We will expedite any legislative work that might help to improve the short-term effectiveness and the financial situation of the Fund. We do, however, believe that the root of the problem is weak management and governance within a context of serious systemic problems.

In our budget hearings, the Committee introduced a new approach this year. We concentrated more or less entirely on the Department, including where we were conducting hearings on budgetary allocations to agencies and other institutions falling under the Transport budget. We did this purposely in order to underline our belief that the Department should assume greater strategic responsibility for these agencies and institutions, using budgetary transfers as a key means for achieving this. The Department supported us in this view. This approach did, however, have the disadvantage that we did not have much direct engagement with the agencies and institutions in this past year. Without undermining the former principle of greater Departmental strategic responsibility, we will also seek to have direct engagements with the agencies in the coming years.

The Committee wishes to acknowledge the spirit of cooperation and helpfulness that we encountered in our engagements with the Minister and his senior staff in our endeavours to pass legislation and play an active oversight role. In the coming year the committee is committed to intensify its interaction with the department in order to contribute to the ongoing development of Transport policy in South Africa.

CORE OBJECTIVES:

To ensure that over the next five years the Committee contributes actively to:

Transformation of the minibus sector

More effective development of public transport subsidies and financing

Fostering local level transport planning and regulation in the context of integrated development plans

Ensuring that the mobility needs of rural people, students and the disabled are more adequately addressed

The improvement of road safety enforcement and regulation, and of security in public transport

The reform of the Road Accident Fund

Monitoring of progress in ensuring effective transport for the 2010 World Cup Soccer championships

More effective integration and sustaining of our freight logistics infrastructure and operations

Monitoring of the role of transport in the Expanded Public Works Programme and in job creation in transport infrastructure development

Assisting the ongoing development of the Department of Transport institutional capacity

The role of the Transport sector in private sector in addressing the HIV challenge.

LEGISLATION:

The Committee passed the following Bill in 2004

National Ports Bill [B5D-2004]

OVERSIGHT:

Institutional Oversight:

The Committee considered and reported on the Budget Votes of Department of Transport

The Committee was briefed by the Department on its Strategic Plans

International / National Visits:

The Committee paid an oversight visit to Cape Town port to assess progress in infrastructural development, strategic planning and institutional interaction with other key stakeholders.

The Committee helped to launch a schools safety programme in the Wineland District Municipality in the Western Cape.

OTHER COMMITTEE ACTIVITIES:

UCT Institute of Civil Engineering briefed the Committee on Problems facing Public Transport: 11August 2004

SANTACO briefed the Committee on the Taxi Recapitalisation Project: 13 August 2004

SANTACO and CSIR Transportek briefed the Committee on Future of Public Transport:

18 August 2004

Adoption of Committee ‘s Strategic Plan: 25 August 2004

Redrafted Road Accident Fund Amendment Bill: briefed by department :08 September 2004

Department’s Annual Report and Financial Statements: 07 October 2004

The committee was briefed by the department on Amendments to National Ports Authority Bill: 20 October 2004

The committee was briefed by the department on Public Transport’s Entities Annual Reports

27 October 2004

The Committee conducted Public Hearings on the National Ports Bill [B5B-2004] :03-10 October 2004

 

FINANCIAL STATEMENTS:

e.g Budget allocated to Committee:

Expenditure: 19,101.50

Catering: 13,201.50

Provincial Visits: 5,900.00

Total Expenditure: 19,101.50

Available Budget 502,073.50

7. OUTSTANDING MATTERS:

The Committee considered the following matters to be ongoing and expressed the wish for them to be executed before the end of the next year 2005.

 

Outstanding issues

Agenda

Date

Comments

1. Amending Road Accident Fund Amendment bill

February 2005

Committee will begin to deal with Bill in March 2005

2 Assess the National Land Transport Transition Act

 

Committee will develop a report in the course mid 2005 and NLTTA should be amended by end 2006

3. Conduct oversight at Ports, Rail Freight and Aviation to assess progress in upgrading capacity, improving inter-institutional and public/private cooperation and in job creation

Next Year

It remains a priority to the Committee

The Committee has included:

A. Quarterly Financial Statements

B. MTBPS

C. MTEF

 

FORMAL ADOPTION OF ANNUAL REPORT BY THE COMMITTEE

Annual Report of the Portfolio Committee on Transport, having been put to the Committee, was adopted by the Committee on 2004.

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COMMITTEE SECRETARY DATE

 

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CONTROL COMMITTEE SECRETARY DATE

 

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COMMITTEE CHAIRPERSON DATE

 

 

 

 

SUPPORT STAFF:

Control Committee Secretary: Ms N Nonkelela

Period from May 2002 to date.

Committee Secretary: Ms N Mjoli

Period from February 2003 to date.

Committee Assistant:

Secretary to Chairperson: Ms M Soga

Period from October 1994to date.