E-tolling isn’t a road to nowhere for Gauteng
BRENDAN Seery’s article in the Saturday Star (August 20) provocatively titled, “So you thought Sanral was dancing to its own tune”, makes for a curious read.
In a peculiar attempt to draw parallels between the Gauteng Freeway e-tolling system and neighbouring Zimbabwe’s economic woes, the article proceeds to make outlandishly inaccurate claims that unfortunately continue to sow confusion and misconceptions surrounding Sanral’s mandate and the e-tolling system.
It paints a picture of a skewed puppetmaster relationship between the government and international monetary regulators that’s characterised by a conspiracy to advance selfish anti-poor capitalistic practices. Accordingly, low-income countries such as South Africa and Zimbabwe, which, desperate to secure loans from IMF and World Bank, are held over a barrel to agree to profit-driven “draconian terms”.
Key among these is the “user- pay” funding principle, ostensibly imposed by outside forces in a desperate bid to embolden private enterprises and allow foreign companies to profit at the expense of the poor.
No explanation is given as to why the user-pay principle is acceptable when the suppliers are local but shouldn’t apply when in the supply chain there is a foreign-owned entity. Seery is also not expressing any views regarding the many southern African countries that are participating in the global economy. Is he suggesting we close the country to international trade and that we are not part of the global economy?
This deliberate misrepresentation conveniently overlooks some of the pertinent aspects underpinning the “user-pay” approach, namely debt raising and the principle of equitability. The government decided in 2007, in terms of the provisions of the Sanral Act and after consultation and publicising the project, to finance the Gauteng Improved Freeway Project (GFIP) through private sector funding. This was to be repaid through open road tolling revenue.
Cabinet at the time opted for the user-pay principle founded on the view that only those who are getting the benefits of the improved road network contribute to meeting its costs.
The impression created is that the entire public infrastructure service-delivery agenda under the aegis of Sanral is a farcical, profiteering, after-thought. Yet nothing could be further from the truth.
The bulk (85 percent) of the roads that Sanral is responsible for are funded directly by the fiscus. The balance are toll roads funded through private sector capital, with the e-toll roads (201km) constituting only one percent of the Sanral portfolio.
It is a matter of record that since the GFIP inception in 2007, Sanral has always been transparent in its business dealings. It is a fact that the implementation of the project had major economic benefits for the province.
Did Seery give any consideration to the effect on every day commuters and the ability to do business in the province if all the additional freeway lanes were closed off as would have been the case if the GFIP wasn’t implemented?
We’d rather look to the future – consider the future traffic situation and negative economic impact the province is facing due to the planned 150km of new freeways that would have been constructed as part of the future GFIP phases that is currently not happening any more.
The seminal 2012 decision of the Constitutional Court that set to overturn the North Gauteng High Court interdict stopping Sanral from collecting tolls on certain roads in Gauteng is a further validation of this fact.
The court agreed with the government view that the court judg- ment is “an unprecedented intervention in public finance matters and is a fundamental breach of the division of powers as stipulated in the constitution”.
As Sanral we remain committed to the national development plan objectives to transform the country’s economic landscape, create employment, grow the economy and strengthen delivery of basic services.
Sanral is a not-for-profit agency of the government and only focused on maintaining and expanding the national road network to the benefit of all its users. Funding of large infrastructure projects in a constrained economy will always remain a challenge.
The ability to finance projects other than through the fiscus accelerates the benefit to the users and the economy. Seery seems to suggest we rather sit on our hands and do nothing with the excuse that we don’t have sufficient funding. Vusi Mona is general manager of communications at Sanral