Budgetary Review and Recommendation
Report of the Portfolio Committee on Transport on the performance of the Department
of Transport for the 2010/11 financial year, Dated 20 October 2011
The Portfolio Committee
on Transport, having assessed the service delivery performance of the
Department of Transport, reports as follows:
1. INTRODUCTION
Section 77(3) of the Constitution stipulates that an Act of
Parliament must provide for a procedure to amend money bills before Parliament.
This constitutional provision gave birth to the Money Bills Amendment Procedure
and Related Matters Act (No. 9 of 2009). The Act gives Parliament powers to
amend money bills and other legislative proposals submitted by the executive
whenever the executive deems it is necessary to do so. The Act therefore makes
it obligatory for Parliament to assess the Department’s budgetary needs and
shortfalls against the Department’s operational efficiency and performance.
Section 5 of the Act compels the National Assembly, through
its committees, to submit budgetary review and recommendation reports (BRRRs)
annually on the financial performance of departments accountable to them. The
report must be informed by a committee’s interrogation of, amongst others, the
medium-term estimates of national expenditure of each national department,
strategic priorities and measurable objectives, expenditure reports published
by National Treasury, annual reports and financial statements, as well as
observations made during oversight visits.
The Committee appreciates
that the manner in which the Department structure itself, relates to the
different modes of transport.
2. MANDATE OF THE COMMITTEE
The mandate of the Committee is to consider
legislation referred to it and to consider all matters referred to it in terms
of legislation, the Rules of Parliament or resolutions of the House. The role
of the Committee is to represent the people and to ensure that government
fulfills its service delivery mandate.
3. MEASURABLE OBJECTIVES AND
OUTCOMES OF THE DEPARTMENT OF TRANSPORT
3.1 Measurable objectives
3.1.1
Programme 1: Administration
The
purpose of the Administration programme is to coordinate and render an
effective, efficient, strategic support and administrative service to the
Minister, Deputy Minister, Director-General and Department.
3.1.2
Programme 2: Transport Policy and Economic
Regulation
The
purpose of this programme is to effectively manage a national innovative
research and development programme, develop and analyse strategic policies, develop
appropriate legislation and to provide economic advice and analysis for all
modes of transport.
3.1.3
Programme 3: Transport regulation and Accident and Incident
Investigation
The
purpose of this programme is to create
an enabling regulatory environment in the areas of safety, security and
environmental compliance and to manage accident and incident investigations for
all modes of transport.
3.1.4
Programme 4: Integrated Planning and Inter-sphere Coordination
The
purpose of this programme is to manage
and facilitate integrated planning and intersphere coordination for
infrastructure and operations.
3.1.5
Programme 5: Transport Logistics and Corridor Development
The
purpose of this programme is to manage the implementation of the transport
logistics strategy and the development of freight movement corridors.
3.1.6
Programme 6: Public Transport
The
purpose of this programme is to develop practices and norms that will increase
access to appropriate and quality public transport.
3.1.7
Programme 7: Public Entity Oversight and Border Operations and Control
The
purpose of this programme is to develop appropriate mandates and monitoring
mechanisms to oversee public entities and border control operations and
control.
3.2
Outcomes
3.2.1
Outcome 1:
An effective and integrated infrastructure network
that serves as a catalyst for social and economic development
·
Key transport facilities developed;
·
Maintenance and preservation of critical roads
improved;
·
Priority passenger rail corridors developed and
upgraded;
·
Efficiencies and reliability in rail freight sector
enhanced.
3.2.2
Outcome 2: A transport sector that is safe and secure
·
Safe rail infrastructure and equipment ensured;
·
Accident and incident rates on roads reduced;
·
Road Accident Fund transformed into the
Comprehensive Social Security System;
·
Maritime transport safety and security improved;
·
Air transport safety and security improved.
3.2.3
Outcome 3: Improved rural access,
infrastructure and mobility
·
Non-motorised transport (NMT) facilities,
infrastructure and services improved;
·
Integrated Rural Public Transport Networks rolled
out in rural districts;
·
15 000 bicycles procured and distributed.
3.2.4
Outcome 4: Improved public transport system
·
Integrated Rural Public Transport Networks rolled
out;
·
Public transport industry formalised;
·
Public transport integration and intermodal planning
committees in all provinces and metros and an active Public Transport
Integration Committee Forum established at national level;
·
2010 transport arrangements coordinated.
3.2.5
Outcome 5: Increased contribution to job
creation
·
Job creation targets for transport sector set and
achieved;
·
National procurement promoted.
3.2.6
Outcome 6: Increased contribution of
transport to environmental protection
·
Impact of transport on climate change reduced.
4. ANALYSIS OF THE 2010/11
ANNUAL REPORT OF THE DEPARTMENT OF TRANSPORT
4.1
Introduction
The analysis seeks to
establish whether the Department has achieved its aims and objectives, as set
out in the 2010/11 Strategic Plan, as well as whether it continues to fulfill
its constitutional mandate. The analysis will highlight the key achievements
made, as well as challenges encountered during the 2010/11 financial year, as
reported in the Department’s Annual Report.
The review of the
Annual Report is in accordance with section 55(2) of the Constitution of the
4.2
The Legislative Mandate of the
Department
The Department is
entrusted with maximising “the contribution of transport to the economic and
social development goals of [the] country by providing fully integrated
transport operations and infrastructure”. The main roles of the Department of
Transport and its public entities in relation to the transport sector are:
·
Policy
and strategy formulation in all functional areas;
·
Substantive
regulation in functional areas where the Department has legislative competence;
·
Implementation
in functional areas where the Department has exclusive legislative competence;
·
Capacity-building
in all functional areas;
·
Monitoring,
evaluation and oversight in all functional areas; and
·
Stimulating
investment and development across all modes.
4.3
The Department of
Transport strives to “lead the development of efficient integrated transport
systems by creating a framework of sustainable policies and regulations and
implementable models to support government strategies for economic, social and
international development”.
4.4
Government Strategy and Objectives
The transport sector
has received significant attention from Government in the recent past and is
being recognised as a driver of overall economic growth. In the 2010 state-of-the-nation
address, President Jacob Zuma highlighted the following as key priority areas
for the transport sector:
·
Spending
R846 billion on public infrastructure;
·
Maintaining
and expanding the road network;
·
Ensuring
that the rail network is reliable, competitive and better integrated with sea
ports;
·
Implementing
the Comprehensive Rural Development Programme;
·
Investing
in youth to ensure a skilled and capable workforce to support growth and job
creation;
·
Eradicating
corruption and fraud in the application for drivers’ licences;
·
Ensuring
that Ministers sign a detailed delivery agreement with the President.
4.5
Department’s Key Strategic
Objectives
The Department’s key
strategic objectives are:
·
Providing
an effective and integrated infrastructure network that serves as a catalyst
for social and economic development;
·
Providing
a transport sector that is safe and secure;
·
Improving
rural access, infrastructure and mobility;
·
Improving
public transport systems;
·
Increasing
contribution to job creation;
·
Increasing
contribution of transport to environmental protection.
5.
PERFORMANCE EVALUATION
5.1
Achievements
During the reporting
period, the Department made a steady and significant progress towards achieving
its aims and objectives. In an endeavor to expedite economic growth with a view
to creating jobs for the greatest number possible, the Department used the 2010
Fédération Internationale de Football Association (FIFA) World Cup as a launch
pad or a springboard. Though not meant for the World Cup, the R25 billion
Gautrain Rapid Rail Link created over 90 000 direct and indirect jobs
while road construction for the same period created over 5 000 jobs.
At the same time, the
R2.2 billion
Improvements at
Perhaps more
importantly, the Department led consultations with the taxi industry that was
affected by the Rea Vaya Bus Rapid Transit (BRT) system and evolved an
ownership scheme by the operators themselves. The BRT system is now
majority-owned by the taxi industry and has become a model for the roll-out of
these systems in other municipalities.
While the Department
met most of the targets it had set itself during the period under review, it
encountered challenges in certain areas as reported below.
5.2
Challenges
5.2.1
Challenges experienced with
Outcomes:
5.2.1.1
Outcome 1: Providing an effective and integrated infrastructure network that
serves as a catalyst for social and economic development
· Production of a Research Report Outlining the Cost of Doing Business in
the Transport Sector
A task team for the cost of Logistics Study Framework was established
and the macro-economic and industry analysis reports were finalised. However,
the research report outlining the cost of doing business in the transport
sector could not be produced by 31 March 2011. At the time of tabling its
Annual Report, the Department stated that the analysis was taking longer than
anticipated due to consultation with stakeholders.
· Development of a Proposal for a
The pilot mobile weighbridge unit at the Durban-Gauteng corridor was not
rolled-out. This activity was reportedly transferred to the South African
National Roads Agency Limited (SANRAL).
5.2.1.2
Outcome 2: Providing a transport sector that is safe and secure
· Transport Sector Disaster Management Plan
The Plan could not be developed owing to financial constraints.
· Publication and Implementation of All Applicable Regulations for
Amendment to
At the time of tabling its Annual Report, the Department stated that it
had published the Draft Regulations for the National Road Traffic Act but it
did not state whether the Regulations were being implemented.
5.2.1.3
Outcome 3: Improving rural access, infrastructure and mobility
· Finalisation of Non-Motorised Transport (NMT) Policy and Draft
Legislation
In its 2010 Strategic Plan, the Department had undertaken to finalise
the NMT Policy and draft legislation during the period under review. However,
at the time of tabling its Annual Report, it reported that the Policy was at a
draft stage pending the approval for the migration of the Policy from the
Department of Basic Education to the Department of Transport and also subject
to the support of the Education Minister and Members of the Executive Council
(MINMEC).
· Roll-Out of NMT Facilities and Infrastructure in Six Districts
No progress was made in this regard. The budget allocated for this
purpose was reportedly shifted to the Rural Grant because the priority changed
to Road Asset Management Systems (RAMS) development.
5.2.1.4
Outcome 4: Improving public transport systems
· Creation of the Project Management Unit (PMU) to Facilitate the
Integrated Public Transport Networks (IPTNs) Implementation
This did not take place due to delays in the procurement process.
· Coordination of
At the time of tabling the Annual Report, the Department reported that
all available provincial data was captured on its database but it was still
awaiting a response from the
· Approval and Implementation of the National Scholar Transport Policy
During the reporting period, consultations took place with the
parliamentary Portfolio Committee on Transport, as well as the
· Formulation of Scholar Transport Migration Policy
No progress was made in this regard as the Department was still in the
process of engaging with the Department of Basic Education to clarify lines of
responsibilities.
5.2.1.5
Outcome 5: Increasing contribution to job creation
· Number of Jobs and Work Opportunities Created
The Department had undertaken to agree with the Airports Company South
Africa (ACSA), South African National Roads Agency Limited (SANRAL), Passenger
Rail Agency of
· Development and Approval of the Maritime Policy and Strategy
Due to capacity constraints, the Department only managed to develop the
first draft of the Maritime Policy and Maritime Strategy.
5.2.1.6
Outcome 6: Increasing the contribution of transport to environmental protection
· Compiling Green House Gas (GHG) Inventory
The literature review for emissions was completed and a Business Plan
was developed. However, due to the unavailability of funds, the GHG Inventory
could not be complied.
· Developing Ballast Water Act and Regulations
The process of appointing a specialist service provider was halted owing
to limited funding.
· Developing a Strategy for Noise Reduction in all Transport Systems
The Department did not have sufficient funds for the development of a
Strategy for noise reduction in all modes of transport.
5.2.2
Challenges experienced with the
following programmes:
5.2.2.1
Programme 2: Transport Policy and
Economic Regulation
The Transport Policy and Economic Regulation Programme
manages a national innovative research and development programme. It also
develops and analyses strategic policies, In addition, it develops appropriate
legislation and provides economic advice, as well as analysis, for all modes of
transport.
· Innovation Strategy
The target could not be achieved due to the unavailability of funds and
lack of capacity. It was reported that funds could not be shifted within the programme
and that attempts to appoint a consultant were unsuccessful.
· Knowledge Management
The target could not be achieved owing to the shifting of funds to other
programmes earmarked by the Department for urgent delivery.
·
Research
Studies
The development of a rural
accessibility index for 12 districts as a management and monitoring tool was
not achieved. The funds intended for this project were reprioritised.
·
Broad-Based
Black Economic Empowerment (B-BBEE) Road Shows
Only six provincial Broad-Based
Black Economic Empowerment road shows were held instead of nine due to
insufficient budget allocation.
5.2.2.2
Programme
4: Integrated Planning and Inter-Sphere Coordination
The
Integrated and Inter-Sphere Coordination Programme manages and facilitates
planning and inter-sphere coordination for infrastructure and operations.
·
Roll-Out
of the Shova Kalula Bicycle Programme
During the reporting period, the
Department procured 15 000 bicycles but only 1 340 of these were
distributed.
·
Promotion
of Animal-Drawn Transportation
The target of distributing 20 carts
was not achieved. This was attributed to financial constraints at a national
level. However, 30 carts were distributed at a provincial government level.
5.2.2.3
Programme
6: Public Transport
The Public
Transport Programme develops practices and norms that will increase access to
appropriate and quality public transport to meet the socio-economic needs of
both rural and urban passengers.
·
Rolling-Out
of the Integrated Public Transport Networks (IPTNs)
No progress was registered in this
regard at Nelson Mandela Bay (NMB). However, the Department reportedly wrote to
the NMB outlining a specific methodology that it needed to undertake in order
to engage in meaningful negotiations with affected operations.
5.2.2.4
Financial
Management
For the fifth consecutive year, the Department received an unqualified
audit opinion. Matters
of emphasis were, however, identified by the Auditor-General pertaining to the
following:
·
The
accounting officer did not take effective and appropriate steps to prevent
irregular, wasteful and fruitless expenditure, as per the requirements of
section 38(1)(c)(ii) of the Public Finance Management Act (PFMA) (No. 1 of
1999).
·
The
irregular expenditure incurred was in contravention of Treasury Regulations
16A6.1 and National Treasury Practice Note No. 8 of 2007/08 issued in terms of
section 76(4) of the PFMA.
·
Fruitless
and wasteful expenditure was incurred as a result of accommodation and flight
tickets not being cancelled timeously.
·
Leadership
did not exercise its oversight accountability and related internal controls.
This resulted in irregular, wasteful and fruitless expenditure being incurred.
6.
HUMAN
RESOURCES
By the end of March 2011, the Department had 677 posts (677: 2010) on
its establishment and 524 (529: 2010) were filled. The vacancy rate stood at
22.60 (21.86: 2010) per cent. The highest vacancy rate was in Programme 4 (Integrated Planning and
Inter-Sphere Coordination) which stood at 27.06 per cent. This was followed by
Programme 2 (Transport Policy and Economic Regulation) which stood at 25.37 per
cent. The Public Entity Oversight and Border Operations and Control Programme
had the lowest vacancy rate at 16.67 per cent. The main reason for staff
leaving the Department was said to be as a result of transfers to other public
service departments. The Department employed eight persons with disabilities,
translating into 1.52 per cent. Of these, 4 were African (two females and 2
males) and 4 White (all females).
7.
TECHNICAL
ASPECTS OF THE REPORT
The Report is credible and presented in a clear and logical fashion.
However, for all the
outcomes, the planned and reported targets were not time-bound in specifying
the time period or deadline for delivery. The absence of time-frames makes it
almost impossible to establish whether the Department achieves its aims and
objectives and to hold it to account. There are also instances in the Report
where the Department has failed to meet the performance targets. The reason
that is repeatedly advanced by the Department for this aberration is that the
funds were not available for it to execute some projects or that there has been
reprioritisation. This is a cause for concern because it suggests poor planning
on the part of the Department during the formulation of its Strategic Plan. In
an endeavor to avoid this anomaly in future, the Department should ensure that
the performance targets that it sets itself are realistic and achievable. An
additional concern is the report on a lack of capacity in a number of
programmes. The Department should evaluate its organisational structure to
ensure that it has the appropriately skilled personnel to fulfill its mandate.
8.
ANALYSIS
OF EXPENDITURE REPORTS
In 2010/11, the Department was allocated R25.2 billion which included
the adjustment of R211.7 million made by the Department during the period under
review. Of this amount, the Department spent R25.1 billion at the end of March
2011. This amounted to an under-expenditure of R148.2 million mainly due to
notable under-expenditures in Programme 2 and Programme 3 which amounted to a
total under-expenditure of more than 15% per programme.
8.1
Programme
1: Administration
The Administration Programme was allocated a total budget of R213.9
million before the adjustment period. During the adjustment period, this amount
increased to R233 million. At the end of the reporting period, the
Administration Programme had over-spent on its budget by 4 per cent. This was
attributed to higher than anticipated travelling costs, legal costs incurred by
the Department, media campaigns and information technology (IT) infrastructure,
including enterprise content management.
8.2
Programme
2: Transport Policy and Economic Regulation
The Transport and Economic Regulation Programme received R49 million
which subsequently decreased to R45 million during the adjustment period.
Notwithstanding the decrease, by the end of the financial year, only 84.7 per
cent of the budget allocation had been spent. The 15.4 per cent
under-expenditure was due to late appointments of service providers by the Department.
8.3
Programme
3: Transport Regulation and Accident and Incident Investigation
For the 2010/11 financial year, the budget for this programme before
adjustments totalled R196.2 million. After adjustments, it increased to R391
million. Despite the increase of R194.8 million, the programme recorded an
over-expenditure of 101.1 per cent owing to the payment made to Tasima, the
supplier that maintains the electronic National Transport Information System
(eNatis).
8.4
Programme
4: Integrated Planning and Inter-Sphere Coordination
Programme 4 was allocated a total budget of R7 billion in the 2010/11
financial year before the adjustment period. During the adjustment period, an
amount of R29 million was shifted from this programme to other programmes. At
the end of the reporting period, the Integrated and Inter-Sphere Coordination
Programme had spent 99.6 per cent of its budget.
8.5
Programme
5: Transport Logistics and Corridor Development
During the reporting period, the Transport Logistics and Corridor
Development Programme was allocated R30.1 million. However, after the
adjustment period, the allocation for this Programme decreased to R28 million.
Of this amount, the programme spent 74.6 per cent at the end of the financial
year. The under-expenditure was mainly due to delays in the implementation of
the Freight Master Plan, Border Optimisation Strategy and the implementation of
the Freight Logistics Strategy.
8.6
Programme
6: Public Transport
During the period under review, the budget for the Public Transport
Programme before and after adjustments stood at R17.4 billion. At the end of
the financial year, it had spent 99.3 per cent of its budget. The 0.7 per cent
under-expenditure was as a result of less than the anticipated taxi recapitalisation
for the financial year.
8.7
Programme
7: Public Entity Oversight and Border Operations and Control
In 2010/11, the Public Entity Oversight and Border Operations and
Control Programme received an appropriation of R149 million which remained
unchanged after the adjustment period. Of this amount, the Programme spent 97.3
per cent by the end of the reporting period. This reduced outlay on the
anticipated expenditure on goods and services mainly related to the delays in
the implementation of the Electronic Performance Management System (EPFMS).
9.
CONSIDERATION OF OTHER SOURCES OF
INFORMATION
The Committee
considered the following reports as part of the Budgetary Review and
Recommendations process:
9.1
State
of the Nation Address 2011: Report by the Parliamentary Research Unit dated 28
February 2011.
9.2
Report
of the Portfolio Committee on Transport on the Budget and the Strategic Plan of
the Department of Transport and its entities, dated 24 May 2011.
9.3
Draft
report of the Portfolio Committee on Transport on its oversight visit to the
9.4
Draft
report of the Portfolio Committee on Transport on its oversight visit to the
South African Maritime Safety Authority, 2-5 August 2011.
9.5
Report
from Auditor-General of
9.6
Mandates
of the Department and its entities.
9.7
Analysis
of 2010/11 Annual Reports of the Department of Transport and the following entities:
Airports Company South Africa (ACSA), Cross Border Transport Agency (C-BRTA),
South African Maritime Safety Authority (SAMSA), Road Traffic Management Corporation
(RTMC), Passenger Rail Agency of South Africa (PRASA) and South African National
Roads Agency Limited (SANRAL).
9.8
Strategic
document, SAMSA, 20 October 2011.
10.
COMMITTEE OBSERVATIONS DURING 2010/11 ANNUAL REPORT BRIEFINGS
The Committee made
the following observations during the Annual Report briefings by the Department
and its entities:
10.1 Report of Auditor General of
The Committee noted
the report from the Auditor-General on the Audit Outcomes for 2010/11 and the
performance of the Department and its entities. The lack of findings in the
performance of the Department was acknowledged, but the Committee noted the
cases of non-compliance by some of the entities raised in the 2010/11 Audit
Outcomes of the Auditor-General.
The Committee expressed concern at the instances of non-compliance in
relation to supply chain management in terms of government priorities of crime
reduction in terms of service delivery. Adequate measures should be applied to
address challenges around procurement processes for the Department and
entities.
The Committee noted that the key areas raised as a concern by the Auditor
General reflected on the responsibilities and performance of the Boards of the
entities. The Committee is of a view that Boards are not as robust in executing
their roles on governance and holding officials accountable. The Committee
therefore requests that Boards increase their oversight of the entities for
which they are responsible. Chairpersons of Boards are requested to come up with
measures to address non-compliance.
10.2 Maritime
Incorporating: SAMSA,
Ports Regulator of
The Committee noted the strategic approach by SAMSA which focuses on the
repositioning of the maritime industry. The strategic goals are: the
development of
The Committee also noted that
10.3 Rail
Incorporating: PRASA,
RSR, Autopax, Intersite Asset Investment
The Committee noted the congestion of trucks entering the
There should be a meeting between the accounting officers and political
heads of the Departments of Transport and of Public Enterprises to attend
to the issue of Transnet that has a tendency to transfer its
primary mandate (transportation of freight through rail) to the Department
of Transport, through shipment by road, as this poses problems for the
Department of Transport as it has to maintain the deteriorating road
infrastructure.
Areas of under-expenditure were noted with concern, especially in the
area of rural transport. The Committee is of the view that the resuscitation of
railway lines in rural areas should be explored in line with the rural and
agricultural government agenda.
10.4
Aviation
Incorporating: SACAA,
ACSA, ATNS
The Committee noted the balance sheet loss of Airports Company South
Africa (ACSA) due to investments made for the Soccer World Cup 2010.
Legislation to address aviation tariffs should be prioritised, including the
need to appoint a permanent economic regulator.
The Committee noted that the incidence of baggage pilfering remains high
at South African airports despite money spent on security. The Committee
recommends that ACSA relook the effectiveness of its strategies if incidents of
pilfering remain high.
The Committee noted that a stable and predictable economic regulatory
framework was necessary for the aviation industry. The Department was urged to
look into the establishment of an economic regulator within the transport
industry, including aviation.
10.5
Roads
Incorporating: SANRAL,
RAF, C-BRTA, RTMC, RTIA
The Committee noted the under-spending in the taxi recapitalisation
programme, especially the decrease in implementation in the provinces and noted
the Department’s response in this regard. The Committee wanted clarity from the
Department on whether there were mechanisms in place to counteract possible
abuses of the programme.
During its oversight visit to the
The Committee noted that more than 70% of the country’s road network has
reached the end of its life span and that the South African National Roads
Agency Limited (SANRAL) is increasingly asked by provinces to assist with the
maintenance of provincial roads, which leaves the entity with funding
difficulties. The Department of Transport should consider exploring a funding
model for road maintenance.
Strategies to reduce usage of roads should be pursued. The use of rail
for the transportation of goods and passengers should be prioritised.
The Committee further noted with concern
the economic and social impact of a user-pay system on South African road users
due to the toll roads.
The Cross Border Road Transport Agency (C-BRTA) requested the
Committee’s assistance to resolve challenges with regard to Lesotho–South
Africa cross-border transport as it is currently hampering the movement of
passengers between the countries.
There have not been sufficient efforts to alleviate cross-border
transport impediments with specific reference to border post delays that
negatively affect the cost of trade and regional integration.
10.6
Governance
The Committee recommends that the Minister of Transport ensure that Board
members are timeously appointed to the Boards of the entities and that the
Committee is advised in accordance with the relevant Act, where applicable.
10.7
General
Institutional capacity and human resources in the Department should be
strengthened. The Committee noted the number of vacancies in the Department and
urged the Department to establish time frames for the filling of these
vacancies as it impacted on service delivery and the performance of the
Department.
There should be a relook at remuneration packages at entities in
relation to its capacity, staff and turnover.
11 RECOMMENDATIONS
The Committee noted that the four modes of transport, namely rail, road,
maritime and aviation transport, were not yet integrated and that there was a
call to integrate the modes. The modes of transport were not developed at the
same pace and there was an uneven level of investment by Government in theses
modes. In response, the Committee made the following recommendations:
11.1
Maritime
11.1.1
At
the dawn of democracy,
11.1.2
The
Committee noted the strategic approach by SAMSA which focuses on the
repositioning of the maritime industry. The strategic goals are: the
development of
11.1.3
The
Committee also noted that
11.2
Roads
11.2.1
The
Committee’s finding was that the Road Traffic Management Corporation (RTMC) had
developed a strategic plan which seeks to intervene in its challenges. The RTMC
would require funding to execute its turnaround strategy. The Committee also
found that the RTMC operated without a Board and that there was a case pending
against the Chief Executive Officer. The Committee finally noted that there was
a need for an institutional arrangement that would create a conducive
environment for the RTMC to operate in.
11.2.2
The
Committee therefore recommends that the Shareholders Committee provide clear
directives for establishing the Board in line with the RTMC Act. The Department
is also requested to speed up the process to amend the National Land Transport
Act.
11.2.3
The
Cross Border Road Transport Agency’s mission is to spearhead social and
economic development within the SADC region through facilitating unimpeded
cross-border road transport movements. This mission has, however, not been realised
in the previous financial years due to funding and institutional challenges.
One of the key strategies of the Agency is to position itself as a facilitator to
alleviate cross-border road movement impediments. The strategy will include the planning of a
collaborative border management system. The Agency’s expenditure framework
increased from R55 million to R182 million to align its resources with the
execution of the newly developed strategy.
11.2.4
To
further ensure that the Agency remains a going concern and is able to cover the
increased expenditure framework, permit tariffs were increased significantly on
1 April 2011. To implement the principles of a user-pay system and not to
overburden the cost of cross-border trade, it is imperative that certain
functions of the Agency are covered by national funding.
11.2.5
The
Committee supports the C-BRTA’s strategic plan and therefore recommends that
the Minister and government support investments accordingly.
11.3
Rail
11.3.1
11.3.2
The
Committee therefore recommends that legislation be put in place to move the
transportation of goods from road to rail. The Committee further recommends
that the focus should be on the development of rail as a mode of transport. The
Committee recommends that the Department consider putting investment in place
for the upgrading and rehabilitation of dormant railway branch lines. A budget was needed to revitalise the railway
and upgrade the current infrastructure from narrow to standard gauge.
11.3.3
Government
is finalising plans to invest approximately R123 billion towards the
replacement of the rolling stock fleet for Metrorail and Mainline Passenger
Services. The investment will be for new
rolling stock and the modernisation and upgrade of associated infrastructure
such as depots, signaling and electrical works amongst others. The investment
will create an estimated 65 000 jobs over an 18-year period, starting with 5 000
jobs at the commencement of the fleet renewal programme and general
infrastructure upgrades. PRASA has developed a plan for the manufacturing of
trains in
11.3.4
The
Committee recommends that this approach be supported by the Departments of
Higher Education and Training as well as Science and Technology so that scarce
and critical skills are developed in line with the development of the railway
industry. The Committee further recommends
that the development of the railway industry be aligned to job creation and
poverty reduction with specific focus on the location of manufacturing plants
in under-developed areas.
11.4
Road infrastructure
11.4.1
The
Committee noted that there were uneven levels of development in road
infrastructure development. The
Committee found that national and some
provincial roads were generally in a good condition, but that municipal and
rural roads were lacking and, in many cases, sub-standard. The programmes and
the budgets of the Department did not relate to this state of affairs.
11.4.2
The
Committee recommends that a workshop be held with provincial portfolio
committees on transport, relevant officials from the national and provincial
departments of transport, as well as the South African Local Government
Association (SALGA) to empower all portfolio committees to have a uniform
approach with regard to oversight. In this same forum, the issue of a funding
formula that relates to the backlog should be discussed by Treasury for
implementation by the relevant departments.
11.4.3
During
the Committee’s strategic planning workshop with the Department and its
entities, the South African National Roads Agency Limited (SANRAL) presented a
funding model and acknowledged that the roads are beyond their lifespan, but no
alternative solution was given. The Committee recommends that SANRAL and the
Department provide an alternative solution to this issue before the beginning
of the new financial year.
11.4.4
The
Committee recommends that the Department consider developing an effective and
holistic strategy to reduce fatal road accidents, thereby contributing to the
reduction of death-related expenditure of the Road Accident Fund and instead
use such financial resources for development. The Administrative Adjudication
of Road Traffic Offences (AARTO) and the Road Traffic Infringement Agency (RTIA)
should be part of the strategy.
11.4.5
The
Committee should also undertake study tours to countries that had effectively
reduced road accidents.
11.5
Scholar Transport
11.5.1
The
Committee observed that it has taken the Department more than four years to
draft the scholar transport policy. In drafting the policy, the Department did
not outline the challenges experienced in scholar transport and the changes
that are needed to be effected. The
Committee noted that the Department had not consulted other stakeholders.
11.5.2
The
Committee recommends that the scholar transport policy address the following
issues: location of the function, safety of scholars, condition and features of
vehicles, competency and life skills for drivers, the accessibility and
conditions of access roads to schools and the role played by the Department of Basic
Education.
11.6 Shova Kalula
11.6.1 The
Committee noted that the Department had to be more strategic in the
distribution of bicycles and not only respond on request. In order to
successfully implement the project, the Department should consider compiling a
database of schools located far from residential areas.
11.6.2 The
Committee recommends that the Department consider the establishment of bicycle
manufacturing plants in under-developed areas so that the project relates to
poverty reduction and the 2020 job creation target.
11.7 Upgrading of Rural Road Network
11.7.1 The
Committee recommends the upgrading of the rural road network from gravel to
low-volume ceiling so that the roads can be utilised in all weather conditions.
The formula for allocating funding should not only focus on population, but also
on the existing backlog.
11.7.2 The
Committee recommends that the Minister consider establishing a fund for the
upgrading of the rural road network in the same way that the Road Maintenance
Fund was established. The Committee also recommends that the Department of
Transport and the Committee lead a process for developing a model for the
upgrading of rural roads in the manner of S’hamba
Sonke.
11.8 General
11.8.1 The
Committee notes that the Department could not develop the Transport Sector
Disaster Management Plan due to budgetary constraints. The Committee recommends
that National Treasury consider providing the required budget to enable the
Department to implement the plan.
11.8.2 The
Committee finally notes that in terms of outcome 5 of the Department’s
programme, no specific information was provided for job creation targets. The
Committee recommends that the Department set specific targets for 2012/13 and
align job creation with skills development with the aim of reducing dependency of
poor families on government grants, and facilitate the creation of self-reliant
and self-sufficient families.
12 CONCLUSION
While the Department
arguably continues to fulfill its constitutional mandate, there is still room
for improvement pertaining to, in particular, the attainment of the targets it
sets itself. This largely necessitates that the targets set should be in tandem
with the financial resources that the Department has at its disposal.
Report to be considered.
Signed:
________________ _______________
Ms NR Bhengu, MP Date:
Chairperson: PC on
Transport