After a decade of acrimony and the largest consumer boycott in South African history, the government has pulled the plug on e-tolls as a way to raise money to pay for Gauteng’s R20-billion-plus freeway improvement project.
In presenting the medium-term budget policy statement (MTBPS), Finance Minister Enoch Godongwana told parliament yesterday that, as far as paying for the cost of the infrastructure “e-tolls is closed”.
However, he left the door open for possible use of tolling to pay for maintenance of the highways and any future road projects.
‘E-tolls battle was not an easy one’
Organisation Undoing Tax Abuse (Outa) chief executive Wayne Duvenage, whose organisation has waged a campaign against e-tolls for more than 10 years – a battle fought through courts and social media – said: “After a decade of defiance, seven transport ministers and billions in uncollectable debt, government has finally acknowledged the end of e-tolls.
“This is a clear indication to Outa that the e-tolling of the Gauteng freeways will be halted and the funding mechanism has been shifted to Treasury and Gauteng provincial government allocations – a solution Outa proposed to government over a decade ago.
“This victory is a significant message to government never to ignore the voice and the power of the people.
“Today we thank thousands of motorists for standing their ground alongside Outa’s collateral challenge in the courts against e-toll defaulters.
“This battle was not an easy one, with the onslaught of government propaganda, expensive court challenges, excessive bullying and coercive campaigns.”
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According to Duvenage, the end of e-tolls will compel government to establish alternative funding for the Gauteng Freeway Improvement Project and legally dismantle it.
In his reaction, Gauteng premier Panyaza Lesufi conceded: “We heard you, people of Gauteng.
“As per the announcement by Minister Godongwana, we have agreed to the formulation of a new revenue enhancement model, which excludes tolling.
“We are now ready to start a new life without e-tolls in Gauteng – an easy but necessary decision.”
Godongwana said the national government would take on 70% of the debt incurred by the SA National Roads Agency (Sanral) on the project and that the Gauteng provincial government would pick up the other 30%.
More than R23 billion would be transferred to Sanral by national government, he said.
“The uncertainty surrounding the Gauteng Freeway Improvement Project continues to have a major negative implication for road construction in the country.
“We need to move on from the debates of previous years and find solutions to this challenge.”
Gauteng, he said, would “also cover the costs of maintaining the 201 kilometres and associated interchanges of the roads”.
“Any additional investment in roads will be funded through either the existing electronic toll infrastructure, new toll plazas, or any other revenue source within their area of responsibility,” he said.
Lukewarm MTBPS
Meanwhile, Godongwana has taken flak from the Congress of South Trade Unions (Cosatu), for delivering “a lukewarm MTBPS”, that “failed to address concerns of workers and the poor”.
“We were hoping for a bold MTBPS that would protect workers from inflation, rebuild the state, decisively tackle corruption, provide relief to the unemployed and put measures to stimulate the economy,” said Cosatu national spokesperson Sizwe Pamla.
“This statement still fails to address the biggest challenge of economic stagnation.
“It is economic stagnation that has led to the seven-fold increase in the public debt over the past decade.
“Suffocating the economy through budget cuts and scapegoating public servants has not worked.”
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University of South Africa political science professor Dirk Kotzé said: “You will never satisfy the expectations of everyone, given the dire socio-economic situation in the country in the aftermath of the Covid pandemic and the floods which devastated KwaZulu-Natal and parts of the Eastern Cape.
“The spiralling food prices and the impact of the war in Ukraine have also contributed to this.
“What has political significance is that the budget deficit is now projected to come down to 4.9% and, ultimately, to 3.2%.”
– brians@citizen.co.za